Crypto exchanges, including Coinbase, typically claim to conduct “rigorous” vetting before listing new digital assets—a process meant to protect investors from scams and market manipulation. But when it came to $TRUMP, a meme coin tied to former President Donald Trump, major platforms approved it in record time. Launched just three days before Trump’s January inauguration, the token lacks intrinsic value and is prone to extreme volatility—a hallmark of meme coins that often leave investors with heavy losses. Despite these risks, Reuters found that nine of the top 10 crypto exchanges listed $TRUMP within 48 hours, while Coinbase greenlit it in just one day.
The speed was unusual compared to other major meme coins like Pepe and Bonk, which took exchanges an average of 129 days to list. $TRUMP, by contrast, was approved in an average of just four days. Even more concerning, a large portion of the token’s supply was held by Trump and his associates—a red flag that typically signals risk of insider dumping, which can crash prices and harm retail investors. After peaking at $75.35 shortly after launch, $TRUMP plummeted to around $7 by April, wiping out many early buyers. Some investors, like Dubai-based trader Carl “Moon” Runefelt, lost hundreds of thousands of dollars, calling it one of his “worst trades.”
When questioned by Reuters, exchanges including Coinbase, Bitget, and MEXC denied cutting corners in their review process, citing “overwhelming demand” as the reason for the swift listing. However, the discrepancy in approval times raises questions about whether political or speculative hype influenced their decisions. Unlike utility-driven cryptocurrencies, meme coins like $TRUMP thrive on viral trends rather than fundamentals, making rapid listings particularly risky for unsuspecting traders.
The episode highlights broader concerns about crypto exchanges’ inconsistent vetting standards, especially when high-profile figures are involved. While platforms insist they prioritize investor safety, the $TRUMP case suggests that market frenzy—or potential favoritism—can override caution. As meme coins continue to lure speculative traders, regulators and users may demand more transparency to prevent similar situations where speed trumps due diligence.