In the world of cryptocurrencies, it is not uncommon to find assets that gain popularity quickly due to external factors, such as the influence of a public figure. This seems to be the case with the cryptocurrency TRUMP, launched under the influence of the President of the United States, Donald Trump. Currently, this coin appears to be severely overvalued, with a disproportionate increase in its price and with fundamentals that do not support its valuation.
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The numbers don't add up
According to available data, the total supply of the currency is 1,000 million units, of which only 200 million are in circulation. This means that 80% of the total supply (800 million coins) is under the control of Donald Trump's team. This fact represents a huge risk for investors, as:
The concentration of coins: With most of the supply in the hands of Trump's team, there is a possibility that this team decides to release a significant portion of these coins into the market in the future, which would generate downward pressure on the price.
Significant sales already made: It is estimated that Trump's wallet has already sold coins worth 525 million dollars. This shows that part of the team is taking advantage of the media hype to capitalize and secure their profits, while retail investors assume the risk.
Price Overvaluation: Based on the current circulating supply and the impact of future token releases, we can estimate that the currency is overvalued by 285%. This calculation reflects the implicit risk and price manipulation that could occur if the team decides to sell more coins.
Effects on price
Overvaluation and high concentration of coins can have devastating effects for investors:
High volatility: If the Trump team starts to release the remaining 800 million coins, the supply would increase significantly, causing a drop in price.
Loss of trust: This type of centralized practice could discourage investors and lead to a massive capital decline in the currency.
Dependence on the public figure: The current value of the currency is tied to the popularity and actions of Donald Trump. Any negative event related to him could directly impact the price.
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Conclusion
The TRUMP coin may seem attractive due to the name associated with it, but the risks far outweigh the potential benefits. The high concentration of coins, previous sales by the team, and dependence on a public figure are warning signs for investors. If you want a safe and profitable alternative, consider joining GlobalInvestor.pro and secure your financial growth responsibly.
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