The cryptocurrency market is gearing up for an important event this Thursday: the large-scale unlocking of the TRUMP memecoin, which was launched by President Donald Trump earlier this year on the eve of his second inauguration. This upcoming unlocking will allow early investors and insiders to sell their held tokens for the first time.
The Price Journey of Trump Memecoin
The memecoin was first issued on January 17, with an issuance of 200 million coins. This week, an additional 40 million memecoins related to presidential groups will be released, bringing the total circulating tokens to 1 billion within three years.
According to data from CoinGecko, the token's market capitalization skyrocketed to about $14 billion just two days after its launch, but then it sharply declined, losing nearly 90% of its value.
The trading volume of this token is very large. As more tokens enter circulation, people have raised questions about potential conflicts of interest and the future price trend.
Messari corporate research analyst Dylan Bane pointed out: 'Once the tokens are unlocked, there can sometimes be a sell-off. The team is unlikely to do this, but we don't know their intentions. Clearly, they do not want negative coverage.'
According to the token's website, Trump Group's affiliated company CIC Digital jointly controls 80% of the tokens subject to the unlocking plan with Fight Fight Fight. However, a representative from CIC Digital did not respond to Bloomberg's inquiry regarding its upcoming unlocking plan.
Increase the family's cryptocurrency investment portfolio to nearly $1 billion
While the price may drop immediately, recent trends indicate that the value of the Trump Memecoin has actually increased by nearly 3% over the past week, consistent with the overall trend in the cryptocurrency market.
Edward Chin, co-founder of Parataxis, stated: 'If they collaborate with the right market makers, the unlocking may not be that significant in the short term. In the long run, the additional supply will put pressure on the price trend, either suppressing the price or preventing it from rising significantly after new demand comes in.'
In recent months, Trump and his family have made significant progress in various areas of the cryptocurrency industry, including non-fungible tokens (NFTs), decentralized finance projects, proposed stablecoins, and a new bitcoin mining company called American Bitcoin.
First Lady Melania Trump has also launched her own memecoin—MELANIA, contributing to the family's growing investment portfolio, which currently has paper gains nearing $1 billion.
Currently, the trading price of the memecoin is $7.83. Although there has been a slight rebound following market trends recently, the monthly decline has reached 30%, and it has dropped over 15% in the past two weeks.
