Donald Trump’s digital shadow keeps getting… stranger. The memecoin bearing his name, simply called TRUMP, defied expectations this week, jumping over 8% despite the release of 40 million tokens previously held by the project’s creators. That’s a 20% increase in the circulating supply, which usually spells trouble. Usually. But not this time.
- The TRUMP memecoin increased in value despite a large release of tokens held by the project’s creators, defying typical market expectations.
- Donald Trump is listed as a manager, president, secretary, and treasurer of CIC Digital LLC, which received a portion of the released tokens and has licensed his likeness for NFTs.
- The memecoin’s rise has attracted scrutiny, with calls for investigation into potential profit-taking by insiders at the expense of smaller investors.
The unlock, totaling around 4% of the total 1 billion TRUMP tokens, sent a ripple through the market, but not the kind you’d expect. Before Thursday, the token was already down significantly from its January high of $71, trading around a more modest $7.54. After the unlock? It settled around $8.30. A bump, not a bust. It’s a bit like throwing a life raft to someone already swimming – unnecessary, and frankly, a little confusing.
The Curious Case of TRUMP
So, what’s going on? Well, the honest answer is… nobody really knows. The TRUMP token, according to its own website, isn’t meant to be an investment. It’s “an expression of support” for the former president. Which is a polite way of saying it’s a gamble dressed up as political enthusiasm. K33 Research called the tokenomics “poor” back in January, and that assessment hasn’t exactly aged like fine wine. But people are still buying. And apparently, even a big token unlock can’t stop them.
The 40 million tokens went to CIC Digital LLC and the project’s creators. And CIC Digital LLC? That’s a company where Donald Trump is listed as manager, president, secretary, and treasurer. He’s a busy man. This isn’t his first foray into digital collectibles, either. The company has previously licensed his likeness for NFT collections. It’s all a bit… tangled, isn’t it? Like trying to untangle Christmas lights after they’ve been stored in a box for a year.
The whole situation has attracted scrutiny, naturally. Public Citizen called for an investigation after Trump promoted the Solana-based memecoin on social media just days before taking office. And Reuters reported that the entities behind the coin raked in nearly $100 million in trading fees in less than two weeks, while smaller investors… didn’t fare so well. It’s a classic tale of hype, speculation, and potentially, a little bit of profit for those at the top.
This isn’t happening in a vacuum, either. Trump’s involvement in crypto, including another project called World Liberty Financial, is complicating efforts to pass stablecoin regulations. Apparently, lawmakers are finding it difficult to navigate the regulatory landscape when the former president is actively involved in the space. It’s a bit like trying to build a house of cards during an earthquake.
The TRUMP token’s resilience in the face of the unlock is… unusual. Most unlocks lead to price drops as holders cash out. But this token seems to operate on a different set of rules. Or maybe, just maybe, it’s a testament to the power of meme culture and the enduring appeal of Donald Trump. Whatever the reason, it’s a story worth watching. And maybe, just maybe, a cautionary tale.