Steven Steele, a talk show host and the marketing director of the MAGA memecoin, refuted the claim that Trump launched the DJ token memecoin in a video posted on his X account. 

Steele mentioned that rumor has it that former U.S. President Donald Trump and his 18-year-old son, Barron, launched the Solana-based $DJ token, with Barron being the mastermind behind the project.

He added, “Apparently, I have to say and remind folks that this is fake news, that this is not real.”

The news emanated from a source with the username ‘Pirate walls’ on X, who mentioned that Trump was launching a token on Solana, $DJT, and his son Barron was spearheading the launch.

The fake news caused the value of the memecoin to go up by 180% on Monday, a typical rug pull similar to the Slerf token.

The MAGA marketing director commented on the ridiculousness of believing the X post since Pirate Walls is “an account that typically just shows T-shirts.” He also told the public to be mindful of the fake news.

DJ Token Trader Loses $341.4K Within Seconds

In the line of the $DJT being a scam, On-chain data revealed that a trader bought 91,705.6 DJT worth about 2,500 $SOL ($342.1K) on Tuesday and later sold them for 4.91 SOL ($673) due to a plunge in the token’s value. The sell-off, which happened less than a minute after the trader made the purchase, resulted in a staggering loss of $341,400.

What a sad story!

This guy spent 2,500 $SOL($342.1K) to buy 91,705.6 $DJT but only got 4.91 $SOL($673) back when he sold it.

He lost $341.4K in less than 1 minute!https://t.co/jrL0ZGa76Dhttps://t.co/qICy7GZfmj pic.twitter.com/olr78X8snp

— Lookonchain (@lookonchain) June 18, 2024

However, another piece of On-chain data revealed that a suspected insider trader bought 52.09M $DJT for 1,363 $SOL ($188K) before the false news of Trump launching $DJT on Solana.

After the news circulated, the trader added to his $DJT portfolio with another purchase of 6.62M $DJT, bought with the 1,000 $SOL($138K) he withdrew from his Binance account. The purchase increased the trader’s $DJT holdings to 58.71M $DJT($1.56M), making him the third-largest holder of $DJT.