Ahead of Trump's crypto dinner, the price of the TRUMP token has fallen more than 5% amid fears of a sell-off by holders who failed to make the cut.
The price of the TRUMP token has taken a big hit after Donald Trump's confirmation of places for the crypto dinner.
However, on-chain analysis suggests that the falling prices are linked to a massive sell-off by attendees after the dinner event cut-off on May 12.
Trump token price drops 5% 24 hours before crypto dinner
$TRUMP token holders are scratching their heads over the sudden price drop ahead of the widely anticipated Trump crypto dinner. memecoin fell nearly 6% in the past day to a low of $12.33 from a weekly peak of over $15.
While falling prices closely resemble the ebb and flow of crypto volatility, a closer look reveals a worrying pattern.
According to an X post by pseudonymous analyst Few, on-chain data indicates a massive sell-off by asset holders.
In their submission, Few notes that the massive sell-off negatively impacts the price of the TRUMP token, following the cutoff for Trump's crypto dinner.
“People have closed all their $Trump hedges,” said Few. “And simultaneously sold some of their tokens too since the cutoff time has passed to participate in the Trump dinner.”
The top 220 TRUMP token holders received invitations to an exclusive Trump crypto dinner on the May 12 cut-off date.
However, several investors shorted Memecoin just before the cutoff, citing declining utility for the token.
A closer look at the data shows that accumulated funding rates fell into the negative before climbing back up, indicating the closing of several short positions. Earlier, TRUMP’s price rose after Donald Trump confirmed a gala dinner on May 22.
A raft of worries ahead of Trump’s crypto dinner
Ahead of the widely anticipated dinner on May 22, there are concerns that the Trump token’s price will continue to plummet.
However, Few argues that the token's value will hold up well during the shorting, while expressing hope that issuers will unveil new utilities to prevent the dump.
However, reports of the $TRUMP Coin team dumping tokens on exchanges have sparked sell-off concerns.
"Not sure what will happen next, but I guess the people behind the token are going to do something until dinner," Few said.
Despite the uncertainty surrounding the pricing, the event has drawn strong criticism for the blurred lines between politics and personal profit.
Other critics are concerned about possible foreign influence, chief among them non-US citizens. Tron founder Justin Sun will attend the dinner after winning first place with other foreign token holders.
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