Memecoin ‘TikTok’ scam? Co-Founder accused of selling half his stock!
A new memecoin called “TikTok” was introduced in the crypto world, which initially gained so much popularity. However, the coin has found itself in the middle of a major controversy after the co-founder of “Students for Trump” is accused of selling off most of the coin’s total supply after the launch that caused a sharp decline in the market value of the coin.
What’s the Issue?
The co-founder of “Students for Trump” apparently sold 50% of the total supply of the “TikTok” coin. Shortly after this move, the coin’s value plummeted. Critics term it a “pump-and-dump” scheme, in which hype was created around the coin to attract investors, leaving them at a loss after the co-founder cashed out.
The co-founder responds
To these allegations, the co-founder has justified his actions by stating that he was never involved in fraudulent or dishonest activity. He claims that selling the coin was a personal decision and that it was never his intention to deceive the investors. What is more is that the rest of the supply from the coin still exists and can be acquired for new investors.
Crypto Community’s Reaction
Incidents like this are not new in the crypto world, but the case of the “TikTok” coin is being viewed as a cautionary tale. Memecoins, which are often driven by hype, can have highly volatile values. This controversy raises the question once again: Are such coins part of a scam, or are they simply the result of speculative trading?
What’s Next?
A full investigation is currently being held and it is left to be seen how this might affect the “TikTok” coin reputation. The co-founder, already a rather controversial figure in the crypto space, will now face much more scrutiny than before. The case is also a lesson to crypto investors in that they must be cautious while dealing with new and unregulated coins.
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