Ryan Fournier, chairman of Students for Trump, faces criticism over his involvement in a TikTok-themed meme coin. The controversy began after the coin’s market value plummeted from $90 million to just $5 million.
Fournier explained on social media that he was approached to create the coin, meant to capitalize on TikTok’s potential resurgence in the U.S. He received 50% of the token supply. The coin saw massive growth, with his holdings reportedly peaking at $19 million as its price soared by nearly 18,000%.
However, Fournier sold 505 million tokens, cashing out approximately $700,000 in SOL. This triggered a sharp price drop, wiping out the coin’s liquidity. Critics called it a “rug pull,” a term for sudden sell-offs that harm other investors.
Fournier denied wrongdoing, claiming he acted out of fear as the coin’s value dipped. “I’m new to crypto and didn’t rug it,” he said, attributing the chaos to his inexperience. Blockchain data, however, shows the sell-off happened while prices were steady.
This incident highlights growing risks in the meme coin market. Political figures and celebrities with little crypto knowledge are increasingly launching tokens. Scammers are exploiting the hype, with surveys showing over 40% of TRUMP token buyers were first-time crypto investors.
Experts warn that meme coins are highly volatile. Investors are urged to research thoroughly and approach with caution to avoid significant losses or falling victim to scams.
