The team behind the Donald Trump memecoin (TRUMP) has taken the market by storm by announcing that the U.S. President will attend a dinner with 220 investors holding the most TRUMP coins, causing the token's price to skyrocket. However, behind the frenzy, the organizations related to Trump are the ones benefiting the most. Is this a sophisticated money-making scheme? Let's analyze in detail.
Dinner with Trump: The Memecoin Frenzy Explodes
On Wednesday (April 23, 2025), the memecoin team announced they would host a lavish dinner on May 22, 2025, where President Donald Trump will share about 'the future of crypto.' Only 220 investors holding the most TRUMP coins will be invited, promoted as 'the most exclusive invitation in the world.' This announcement immediately triggered a trading frenzy as investors rushed to buy tokens to secure a spot, pushing the price of TRUMP up sharply.
Profit Mechanism: Who Really Benefits?
Despite the price surge, two organizations controlling 80% of the token supply – CIC Digital LLC and Fight Fight Fight LLC, part of Trump's group – are the real big winners. According to Nathan van der Heyden, head of business development at Aragon, 'If you control the market and transaction fees, what you care about is trading volume and price volatility, not the token's value.'
Specifically, when Trump launched the memecoin in January 2025, these two organizations placed 10% of the supply into a liquidity pool on the Meteora exchange, ensuring the token could be freely traded. In return, they collected transaction fees ranging from 0.1% to 10% per transaction, depending on market demand – similar to the 'surge pricing' mechanism of ride-hailing apps. In the 24 hours following the party announcement, the liquidity pool generated $1.6 million in transaction fees, most of which flowed into the pockets of CIC Digital and Fight Fight Fight – the largest contributors to the pool.
Token Sale Restrictions: Price Increase but Not Easy to Cash Out
Theoretically, organizations related to Trump could benefit from the rising price of TRUMP since they are the largest shareholders. However, they are restricted from selling tokens due to a three-year lock-up mechanism and the risk of negative backlash from the community if they sell a large amount, causing a price crash. Van der Heyden noted: 'Profiting from token sales looks very bad, while profits from transaction fees are discreet enough to protect reputation.' This indicates Trump's strategy focuses on optimizing transaction fees rather than selling tokens.
Risks for Retail Investors
While TRUMP's price is soaring, retail investors buying in to secure a spot at the dinner may face significant risks. Analyst Noelle Acheson from Genesis predicts that the token's price will drop sharply after the event, although future investor incentives may mitigate the decline. Data from Nansen shows that 'smart money' traders – those with a history of profitable investing – sold off TRUMP as soon as the price rose. Nicolai Søndergaard, an analyst at Nansen, states: 'Smart money doesn't care about the TRUMP token.'
Concerns Behind Trump Memecoin
The TRUMP memecoin has been controversial since its launch, with many critics calling it a money-making scheme by Trump, exploiting his supporters. Some worry that this token could become a tool for bribery, as organizations or individuals with political motives buy large quantities to drive up the price, thereby influencing the President discreetly. The dinner further heightens concerns, as the identities of the 220 largest investors listed on the TRUMP coin website are presented only as anonymous wallet addresses.
Van der Heyden commented: 'The crypto community understands that Trump is not genuinely interested in blockchain technology but only sees the potential for personal profit.' This raises questions about transparency and ethics regarding Trump's involvement in his own memecoin.
Impact on the Crypto Market
Despite the controversy, the TRUMP memecoin has contributed to a lively crypto market, with trading volumes surging. However, this event also reflects a divide: while large organizations benefit from transaction fees, retail investors risk suffering losses. The crypto market is currently experiencing other positive developments, such as XRP (market cap $126.6 billion, price $2.19) launching futures contracts by CME Group, or Solana ($148.26) receiving $125 million in investment from RockawayX.
Conclusion: Who is the Real Winner?
The dinner with Trump has driven up the price of the TRUMP memecoin, but CIC Digital and Fight Fight Fight – Trump's two organizations – are the real beneficiaries with $1.6 million in transaction fees in 24 hours. Meanwhile, retail investors face the risk of price declines after the event. Will the TRUMP memecoin continue to create a buzz, or is it just a short-term gimmick? Investors need to be cautious in this wave of excitement.
Risk Warning: Crypto investment carries high risks due to price volatility and legal uncertainties. Please consider carefully before participating.