$TRUMP Token: From Soaring to Sinking
Launched on January 17, 2025, just before President Trump's inauguration, the $TRUMP token initially surged to a market capitalization exceeding $13 billion. However, within days, its value plummeted by approximately 75%, dropping to around $19.09 .
A major factor contributing to this decline is the unlocking of 40 million tokens, valued at about $320 million, owned by Trump Organization affiliates. This release began on April 17 and is set to continue daily over two years, leading to fears of market dilution and further price drops .
𧊠A Steep Fall
Trump-branded cryptocurrency, has also seen a dramatic decrease in value. It has fallen nearly 99% from its all-time high, with developers reportedly withdrawing over $50 million, though the specifics remain unclear .(Binance)
â ď¸ Broader Market Concerns
These developments have sparked criticism from various quarters. Some analysts view the situation as a "pump and dump" scheme, where early insiders profited at the expense of retail investors. For instance, a forensic analysis indicated that 813,294 wallets lost approximately $2 billion, while the Trump-affiliated entities earned about $100 million in trading fees .
Additionally, the Trump administration's deregulation of the cryptocurrency industry has raised ethical concerns, with critics arguing that it prioritizes personal gain over market integrity .
đ Conclusion
The significant declines in the $TRUMP token highlight the inherent risks associated with speculative digital assets, especially those linked to political figures. Investors should exercise caution and conduct thorough research before engaging in such investments.
