Despite the sell pressure from a massive token unlock, the Official Trump memecoin has seen an unexpected 8% surge in a 24-hour timeframe. 40 million of the project’s tokens were unlocked on Thursday, marking an increase of just 4% of the overall 1-billion-token supply. However, it significantly bumps up the circulating supply by 20%, from 200 million to 240 million.
Prior to the unlock event, TRUMP tokens were trading approximately at $7.54, a downturn from their highest point of $71 in January. After the token unlock, however, the price rose to around $8.30, marking an 8.5% increase within a day, as per The Block’s Official Trump Price page.
Usually, such large-scale unlocks leading to the availability of tokens for sale in the open market result in a decrease in the cryptocurrency’s price due to selling pressure. Yet, TRUMP seems to have bucked this trend. The unlocked 40 million tokens are owned by the project’s creators and CIC Digital LLC, as stated on the memecoin’s official website.
Ascertaining any concrete value that Trump’s memecoin holds beyond speculative price betting can be quite challenging. As per the project’s website, the memecoin is intended to be an expression of support and engagement with the values and beliefs symbolized by ‘$TRUMP’ and its associated artwork. It is not designed to serve as an investment opportunity, investment contract, or any kind of security.
Earlier in January, K33 Research criticized the tokenomics of the memecoin project, labeling it as “poor.” Trump came under scrutiny when he promoted the Solana-based memecoin on social media just three days before his inauguration. Public Citizen, a watchdog group, demanded an investigation into the president’s promotion of the cryptocurrency.
As reported by Reuters in February, “Entities behind President Donald Trump’s crypto coin accumulated nearly $100 million in trading fees in less than a fortnight, according to estimates from three blockchain analysis firms.” Trump’s role as manager, president, secretary, and treasurer of CIC Digital LLC, which previously licensed the president’s likeness for numerous NFT collections, has been confirmed.
The Trump family’s involvement in crypto, including the DeFi project World Liberty Financial, has reportedly complicated the process of drafting stablecoin regulations, according to House Financial Services Committee Chair French Hill, R-Ark. World Liberty Financial is planning to launch its own stablecoin.
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