Over 700 copycat tokens flood the market following the launch of Trump’s meme coin, according to a report

The launch of Donald Trump’s meme coin has triggered a massive surge in unauthorized copycat tokens, with over 700 new coins flooding the market in the three weeks following the announcement. These tokens, often bearing names linked to Trump and his family, have raised concerns about potential scams and misleading investments.

The surge began shortly after Trump’s token launch, as creators exploited Solana blockchain features that allow unrequested deposits into digital wallets. Many of these copycat tokens carry names like “OFFICIAL TRUMP” or “OFFICIAL MELANIA,” yet have no actual connection to the former president. The tokens are aimed at deceiving investors by using familiar names for marketing purposes.

In addition to the 167 Trump family-themed tokens, the surge includes 35 tokens linked to Tesla CEO Elon Musk, another figure associated with Trump. According to Financial Times’ investigation, many of these tokens show low trading activity, and in some cases, suspicious trading patterns were identified, including quick buy-and-sell moves that suggest manipulation. One example highlighted an account purchasing $100,000 of a fake “Official Trump” token and selling it 12 seconds later at a loss, raising questions about potential market manipulation.

The influx of these tokens has overwhelmed crypto exchanges, with Coinbase CEO Brian Armstrong acknowledging the challenge of reviewing over a million new tokens created weekly. Armstrong emphasized the need for a shift in regulatory approaches, suggesting that regulators should focus on a blocklist system rather than trying to approve each token individually.

While some tokens are created purely for speculative purposes, others attempt to capitalize on the high-profile nature of public figures like Trump and Musk. With names like “OFFICIAL BARRON TRUMP” and “OFFICIAL IVANKA TRUMP,” the tokens have targeted Trump’s children as well, adding to the confusion for investors.

The rise in these deceptive tokens highlights the risks faced by uninformed investors, who may struggle to differentiate between legitimate projects and copycats. Experts warn that this trend could lead to substantial losses for those unable to distinguish between authentic and imitation coins in the ever-expanding crypto market.