Trump's memcoin: What will happen to the market after unlocking for $320 million?
Listen, friend, there's a curious story going on around Donald Trump's memcoin, the very TRUMP. Next week, it is planned to unlock tokens, as a result of which the project team will have access to 320 million dollars. This is, for a moment, 20% of the total volume of coins.
What does this mean in practice? Well, imagine that: You have a bunch of tokens, and suddenly they let you sell them. Of course, there's a chance that you will. And if there are a lot of people like you, the price will inevitably go down, because there will be more offers than those who want to buy. This is the base market.
TRUMP is already not in the best condition. It has fallen in price by 83% since January and is now trading around $8. Since Trump became president again, the coin has only been losing value. And now add to that a potential drain of hundreds of millions.
Investors are panicking. The number of people with at least $1,000 in their TRUMP account has dropped from 143,000 to just 12,000. People are withdrawing from the asset en masse, and interest in memcoins is generally fading. Do you remember how in December the entire memcoin market was worth 119 billion? Now it's 45 billion. Almost minus 2/3.
The most interesting thing is that no one knows if the Trump team will actually merge the tokens. But if they decide, the market may simply not be able to stand it. The liquidity is small, and even if they sell carefully, the pressure on the price will be enormous.
So, I'm sitting here thinking: if even the "presidential" memcoin is being blown away like this, and the whole industry is losing interest, is it even worth getting into memcoins now? What do you think?