Meteora Token Crashes 55% After $4.2M Trump-Linked Airdrop Amid Fraud Lawsuit

The recent Meteora (MET) token airdrop on Solana, distributing 480 million tokens to liquidity providers and stakers, has sparked controversy and a significant price crash. Three major recipients, linked to the Trump meme coin team, received $4.2 million worth of MET tokens and promptly transferred them to the OKX exchange, suggesting immediate intent to sell, which contributed to the token's 40-55% price drop shortly after launch. This move has raised concerns among the community about insider advantages and possible manipulation, exacerbated by the unusually high initial circulation of 48% of total token supply. The situation is further complicated by a federal class-action lawsuit against Meteora's co-founder, Benjamin Chow, accusing him of pump-and-dump schemes involving Trump family endorsements and other meme tokens. The lawsuit alleges deceptive practices and seeks severe legal remedies, while the timing of the airdrop and subsequent token dumps have fueled speculation about potential legal and political interference. Despite Meteora's strong DeFi metrics and high total value locked, the fallout from these issues has eroded trust and caused heightened market volatility.