Although Trump memecoin showcased an 8.5% surge when tokens were released, it didn’t last long; today, its price has dropped 3.37% from last week.
In a surprising twist, Trump Memecoin ($TRUMP) saw an 8.5% price jump just hours after a large number of tokens were unlocked. The move comes after a three-month lock-up period ended, releasing 40 million tokens previously held by the project’s creators and CIC Digital LLC, an entity where Donald Trump himself is listed as manager, president, secretary, and treasurer.
$TRUMP Up and Downs
This token unlock increased the circulating supply by 20%, bumping it from 200 million to 240 million. Interestingly, this usually spells trouble for token prices. When a lot of supply hits the market at once, prices typically fall due to increased selling pressure. But Trump Memecoin went against the grain, rallying to around $8.30 from $7.54 in just 24 hours. However, this growth stumbled today. At the time of writing, Trump memecoin is priced at $8.20, reflecting a 1.11% drop from the last 24 hours.
To put things into perspective, this unlock represented only 4% of the total supply, which stands at 1 billion tokens. Still, the sudden bump in circulating tokens is significant, and so is the reaction of the market.
A Look Back at the Hype
Earlier this year, Trump Memecoin was flying high. In January, it reached an all-time high of $71, far above where it sits today. The token is built on the Solana blockchain and has always been more about political symbolism than utility. The official website claims the token is “an expression of support” for Trump’s ideals and artwork and not an investment vehicle. However, that hasn’t stopped traders from speculating heavily on it.
But not everyone is cheering. Critics have questioned Trump’s public promotion of the memecoin just days before he assumed office again. Advocacy group Public Citizen even called for an investigation, pointing out that the entities behind the memecoin reportedly raked in nearly $100 million in trading fees within two weeks, according to blockchain analysts cited by Reuters.
More Than Just a Coin?
The Trump family’s growing involvement in the crypto space is starting to make waves in Washington. The memecoin isn’t Trump’s only crypto venture, he’s also connected to World Liberty Financial, a DeFi project that’s reportedly working on its own stablecoin. Lawmakers, including House Financial Services Committee Chair French Hill, have expressed concerns that these activities are complicating efforts to regulate digital assets like stablecoins.
Back in January, blockchain firm K33 Research criticized the tokenomics of Trump Memecoin, labelling them as “poor.” That sentiment hasn’t stopped the hype, though. For many holders, the coin seems to serve more as a statement or collectable than a serious financial asset.
Final Thoughts
The recent shift in Trump Memecoin shows just how unpredictable the crypto market can be. While many expected the token’s price to fall after the unlock, it climbed instead, but when it was expected to rise, it fell. Whether this momentum will last remains to be seen, especially as more people take a closer look at who’s behind the coin and what it actually represents.
One thing is clear: Trump Memecoin isn’t just another digital token; it’s a political statement, a financial curiosity, and now, a hot topic in crypto circles and on Capitol Hill.
Source: Coinfomania / Digpu NewsTex