Why the TRUMP meme token fell

Over the past 24 hours, the TRUMP meme token has fallen in price by 13 per cent. Thus, the market capitalisation of the cryptocurrency dropped to $7.1 billion, and the coin itself was on the 29th line in the ranking of the largest coins.

The situation with the rate of the meme-token TRUMP from Donald Trump

From its price maximum, Donald Trump’s crypto asset is 51 per cent behind. That is, the coin has fallen in price by more than half.

One of the reasons for TRUMP’s poor performance recently is the Democrats’ desire to investigate what’s going on with the token. In particular, Representative Gerald Connolly of Virginia sent a letter to the committee’s Republican chairman, James Comer, calling for a probe into whether Trump’s crypto projects are in conflict with his presidential duties.

Connolly admits that Trump’s team has already locked in certain profits from the World Liberty Financial (WLF) and Official Trump (TRUMP) projects. Such potentially creates risks to US national security and may even violate ethical standards, Cointelegraph representatives note.


Recall, World Liberty Financial - a project of the Trump family from the category of decentralised finance, on the basis of which the token WLFI was launched. The debut offering of the crypto asset for investors was unsuccessful, as the sales bar of $ 300 million was lowered to $ 30 million a few weeks later due to low demand.

However, the successful launch of TRUMP and the hype surrounding the event did raise the necessary capital. This was also due to the investment of Justin Sun, the creator of the Tron network, who invested $75 million in the platform.


Tron blockchain platform founder Justin Sun

Gerald Connolly has not forgotten this fact. He stated that Justin Sun is a foreign entrepreneur. In addition, the SEC has previously accused him of securities fraud, which also creates certain risks. As a result, Connolly admits that Trump’s cryptocurrencies allow residents of other countries to influence US politics to some extent.

Here’s a rejoinder to that.

Allowing such practices without proper oversight will signal to the American people that the Oversight Committee is either unwilling or unable to uphold its own stated standards.

Trump is unlikely to support a separate provision of the Presidential Ethics Reform Act without committee intervention, the expert said. Still, it requires not only disclosure of relevant financial information, but also a review of possible conflicts of interest.

If these reforms are to mean anything, they must be applied across the board.

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Who buys meme tokens TRUMP and MELANIA

Another cause for concern regarding the cryptocurrency projects of the Trump family is too high concentration of tokens in the wallets of large investors. We are talking not only about the TRUMP asset, but also his wife Melania’s meme token called MELANIA.

Chainalysis experts determined that about 94 per cent of the total supply of TRUMP and MELANIA coins are stored in just 40 wallets. The balance of each of them exceeds the $10 million level, meaning they are owned by large investors.

Distribution of TRUMP and MELANIA meme tokens among blockchain addresses

2.1 percent of all token holders hold between $1 million and $10 million, while coin balances between 100 thousand and 1 million equivalent account for only 1.7 percent of all meme holders.

Finally, less than $100,000 is held by 2.2 percent of all token holders’ wallets. That is, TRUMP and MELANIA are indeed in the circle of interest of primarily large players.

According to the DexScreener platform, today the TRUMP token is on 790 thousand addresses, while the MELANIA figure is 343 thousand units.

Despite the high concentration of assets on the wallets of wealthy investors, meme tokens have also managed to attract new market participants, Chainalysis representatives note. Approximately half of token buyers created their wallets on the day they acquired the digital asset, which means they came to the world of blockchain just because of the coins of the members of the presidential family.

How much money was earned on the meme token TRUMP

We told you about an anonymous crypto trader who bought Trump’s million-dollar meme token minutes after the news of its launch. He made tens of millions on his investment, but this is not true for all players.

As analysts note, 77 per cent of traders made less than $100 on TRUMP, while 60 large “whales” made more than $10 million. Also, only a small percentage of investors lost between $10,000 and $100,000 on the investment.

Here is a detailed distribution of losses and gains of crypto investors. It was possible to get this data by analysing the transactions of TRUMP holders in the blockchain.

Earnings and losses of cryptoinvestors on the TRUMP meme token


TRUMP has already earned the title of the most successful meme token launch in the crypto industry. However, further down the line, it is sure to be the target of claims from Democrats who will use the crypto asset to cause problems for the new president. Still, residents of any country can buy the coin, which is quite predictable that rival politicians will want to use it.


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