Donald Trump's foray into the world of cryptocurrency with his official memecoin, TRUMP, appears to be facing significant headwinds. While the former president has seemingly embraced the token as a gauge of public sentiment regarding his leadership, its recent market performance paints a decidedly bleak picture. Down 85% from its January all-time high of $73, the TRUMP token now trades at around $10, raising questions about its effectiveness as a "success barometer."
Adding to the growing concerns is a massive $520 million token unlock scheduled for July 18. According to on-chain data from Tokenomist, a staggering 73.52% of the TRUMP token's total supply – approximately 735 million tokens – has yet to enter circulation. The upcoming unlock will release 50 million tokens, representing 25% of the current circulating supply, onto the market.
This influx of a large number of tokens has the potential to exert significant downward pressure on the token's price, particularly if demand fails to keep pace. The market's reaction to this impending unlock will be a crucial test of investor confidence and, by extension, could be interpreted as a broader indicator of political enthusiasm for Trump's leadership.
Even a recent attempt by Eric Trump, on June 7, to bolster market confidence through the Trump-backed crypto company World Liberty Financial (WLF) failed to move the needle. WLF announced plans to acquire a "substantial amount" of the memecoin tokens, but the token's price remained largely unresponsive, leading commentators to suggest it was "not a good sign."
The concept of using memecoins to measure public sentiment is not entirely novel. Yat Siu, co-founder of Animoca Brands, previously noted that the TRUMP token's initial surge was fueled by hype and novelty. However, he also suggested that over the long term, such tokens could indeed reflect broader attitudes.
As the July unlock approaches, the TRUMP memecoin finds itself at a critical juncture. Its ability to absorb the impending supply increase and avoid a significant sell-off will not only determine its future as a digital asset but also potentially offer a peculiar, if not entirely reliable, insight into the shifting tides of public sentiment towards Donald Trump.
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