5 Things to Know About the Trump Coin Craze in the Cryptocurrency Market
- Donald Trump’s coin rose spectacularly over the weekend before a sharp sell-off.
- The $TRUMP token made the president a crypto billionaire overnight.
- Here’s what to know about the high-profile meme coin launch.
Days before his inauguration, Donald Trump announced the release of an official Trump cryptocurrency $ As a way to celebrate his return to the White House.
Although the coin’s website states that it is merely an “expression of support,” traders have wasted no time in accumulating. Avid cryptocurrency investors were also introduced to the meme coin $MELANIA on Sunday, named after the First Lady.
What was revealed was a frenzy surrounding the two memecoins, generating astonishing gains for some while leaving others skeptical. Here are five things to know about the Trump family’s cryptocurrency wealth.
- The price has been a roller coaster
Crypto has a reputation for wild price swings, and the President and First Lady meme coins demonstrated that in a spectacular way.
The price of TRUMP rose to $75.35 on Sunday, marking a massive 1,010% increase from its price on Friday, but the token fell significantly when the $MELANIA coin was unveiled on Sunday.
The First Lady’s Code performed similarly shortly after its release. At a peak price of $13, the token became the most popular cryptocurrency on CoinMarketCap by early Monday, beating out large coins like bitcoin, ether, and Ripple. But it did not last long, and the token collapsed sharply over the past 24 hours.
Profit taking and investor disappointment are the main reasons behind the collapse. Although there was great hope that Trump would signal support for cryptocurrencies on his first day in office, the president remained mum on the issue, and did not address Bitcoin or the broader field during his inauguration day speeches. Notable was the absence of any update on the upcoming Bitcoin reserve that Trump had raised before his swearing-in.
according to Queen GekkoThe market caps of $TRUMP and $MELANIA are $7,598,988,479 and $607,484,542 on Tuesday afternoon, respectively.
2. Some investors are not happy
While Trump’s ad called on his supporters to “enjoy” the coin, some did I was stressed about the project.
This is true even among cryptocurrency enthusiasts, who criticized the launch as a setback for an industry trying hard to be taken seriously. For many cryptocurrency enthusiasts, renewed interest in meme cryptocurrencies will only discredit the industry, reviving a volatile 2021. Currency trend meme Which burned many investors.
“Trump coin is embarrassing,” said Peter McCormack, a cryptocurrency host with 550,000 followers on X. “It’s the opposite of what you voted for.”
Enthusiasm and a flood of donations from the cryptocurrency industry helped put Trump back in the White House, hopefully More flexible organization And broader market support under his supervision. Many in the industry are waiting for him to do just that Encryption is a national priority They can be disappointed if changes don’t happen soon.
3. The largest holders of Trump Coin have made huge returns
Although the currency has only been around for a short time now, some of it already exists Much richer After investment.
Investors have received returns of over 10,000%, although positions vary widely. The $2.4 million position was among the highest holdings, according to data Monday from analytics firm Nansen. But the highest profit went to a position worth $270,000, which received a return of 19,000%.
By Monday afternoon, about 33% of the 15 largest holders had completely exited their positions.
Nansen data shows that one investor walked away with a loss of $3.5 million after his position fell by 36%.
- Donald Trump is a cryptocurrency billionaire – on paper
On paper, the currency added tens of billions to Trump’s net worth.
CIC Digital, the Trump Organization’s TRUMP issuer, controls 80% of the token supply. The value of this amount amounted to about $30 billion as of Tuesday afternoon.
This isn’t the first time Trump and his family have dabbled in cryptocurrency, either.
Before $TRUMP, the First Family backed World Liberty Financial, a project that offers its own token. According to data from ArkhamIt has collected more than $300 million in total sales since its launch in September. 75% of it has been allocated To the Trump family.
Trump also launched a series of NFTs Over the years, most recently during the election campaign last May.
5. Trump may have a hard time spending his money
However, while the value of Trump’s coin has risen, he may face a tough time Convert those paper gains into cash. This is because any sale by Trump could flood the market with Trump coin supply, leading to increased demand and a collapse in prices.
While the Trump dollar has made the president rich on paper, only a small portion of the meme currency is in circulation. According to the website, 10% is for the public issuance and another 10% for “liquidity.”
As for the accessible part, Trump will need to find someone willing to trade with him. If investors saw that the president was selling his own assets or was about to unleash a massive supply wave, the price would likely collapse, hurting his paper gains in the process.
The same anxiety plagues shares Trump Media and Technology Companya meme stock that rose during the presidential campaign as part of the broader Trump trade. Although Trump has millions in shares of stock, investors have speculated whether he will do so Selling his property – Causing pain to those who own the shares.
