Trump-Bakkt Takeover Rumors Fuel 37,000% Surge in New Solana Memecoin

A new BAKKT memecoin on the Solana blockchain surged by over 37,000% within 24 hours of its launch, driven by reports of Trump Media & Technology Group’s (TMTG) rumored acquisition of crypto platform Bakkt.

Why Did BAKKT Memecoin Rise So Much?

The Financial Times report suggesting that TMTG may acquire Bakkt created fertile ground for opportunistic token creators. Almost immediately after the news broke, developers launched the BAKKT memecoin, leveraging the Trump connection to attract attention.

The Solana memecoin amassed $162.54 million in trading volume in the first 24 hours, involving over 230,765 transactions. However, despite the enormous trading volume, the token’s liquidity was only $1.18 million.

Liquidity represents the capital readily available for trading without significantly impacting the token’s price. In BAKKT’s case, low liquidity compared to trading volume means that relatively small buy or sell orders can cause substantial price swings.

While many trades occurred, the market had a limited buffer to absorb large movements, making the token extremely volatile and susceptible to rapid price changes.

i just started accumulating $BAKKT heavily following @RoaringKitty and the rumors of trump’s media group in talks to buy @Bakkt

gambling for now, chart looks decent pic.twitter.com/BI0mNKeGgN

— Michi (@michigems) November 19, 2024

BAKKT’s rapid rise reflects the crypto market’s tendency to capitalize on headline-driven narratives. Trump’s rumored involvement with the real Bakkt organization provided fertile ground for speculation.

Nonetheless, high trading activity and limited liquidity make BAKKT highly susceptible to sharp price swings, raising concerns about potential “pump-and-dump” schemes.

BAKKT Pump Part of Trump Memecoins Craze

The BAKKT memecoin’s dramatic pump follows a familiar pattern with other Trump-themed tokens.

Over the past several months, the crypto market has seen a surge of memecoins tied to the former president’s public and business ventures, capitalizing on his influence and news coverage.

Tokens like “TRUMP2024,” “Department of Government Efficiency,” and other similarly-themed memcoins have attracted speculative interest, though many experienced wild price swings and short-lived hype cycles.

The Department of Government Efficiency (DOGEGOV), for instance, jumped by circa 350% shortly after Trump’s presidential election win. It wiped off 65% of those gains afterward.

Ultimately, these tokens represent a gamble on short-term gains, with the risk of steep losses always lurking.