TLDR
- A 12% increase in TRUMP token value followed after a boost from President Donald Trump via Truth Social, where he proclaimed it as 'the best of them all'.
- Currently valued at around $11.85, the TRUMP token is significantly lower than its historical peak of $77.
- Following Trump’s endorsement, trading activities skyrocketed past $1 billion, marking double the usual volume seen in the days prior.
- With 40 million TRUMP tokens, equated to a market value of $472 million, set to be released starting April 18, concerns of heightened selling pressure arise.
- House Democrats proposed the MEME Act, seeking to prevent federal employees and their families from gaining financially through meme coins.
President Donald Trump’s endorsement on a Monday propelled the official TRUMP meme cryptocurrency up 12%. Posting on Truth Social, he dubbed TRUMP token as 'the greatest and coolest', propelling its price from $10.93 to about $12.25 rapidly.
Here we go again 🙈😂 pic.twitter.com/mJY43h9Zvh
— Trader Edge (@Pro_Trader_Edge) March 23, 2025
Since then, the token experienced a minor retreat, currently sitting at roughly $11.85, which accounts for a 9% ascent in the past 24 hours. It emerged as the top-performing digital currency during Asian trading times, according to CoinGecko figures.
I LOVE $TRUMP — SO COOL!!! The Ultimate in its category! Trump expressed to his 9.3 million Truth Social followers on a Sunday. The passionate recommendation piqued the interest of investors keen to act.
Aligned with the price uptick was a surge in trading volumes. Daily trades skyrocketed past $1 billion, doubling the average of preceding days.
Even though the boost was recent, the token is still considerably below its zenith, having fallen approximately 85% from its all-time high of $77 that it reached post-launch in January.
Introduced on January 17, 2025, the Solana-backed meme coin quickly garnered attention within the crypto sphere's initial period.
In just two days after its release, the token's market cap soared to nearly $15 billion, an increase coinciding with the days leading up to President Trump’s inauguration on January 20.
The initial allocation saw the release of 200 million TRUMP tokens, with plans laid out for expanding this to 1 billion tokens over a three-year trajectory.
Token Distribution and Forthcoming Hurdles
A study by Chainalysis uncovered key details of token ownership, revealing approximately 94% of both TRUMP and MELANIA tokens, the latter linked to the First Lady, are retained by merely 40 wallets.
This concentration suggests centralization concerns as such holders, often termed 'whales', could potentially wield significant influence over token pricing.
In the coming weeks, the meme-inspired token faces fresh challenges. Commencing April 18, 40 million TRUMP tokens will be released into the market.
This release, accounting for around 4% of the total supply, is valued at over $472 million. Following this release, a minimum of half a million TRUMP tokens will keep entering circulation daily through 2027’s end.
Some investors voice concerns that this unlock schedule might trigger increased selling pressure. An investor going by HENRI.SOL remarked, 'Trump is promoting TRUMP coin on Truth Social… it seems they might be looking for exit liquidity before the unlock.'
The token isn't just catching financial eyes, but also political scrutiny. House Democrats, spearheaded by Representative Sam Liccardo, introduced the MEME Act aiming to bar federal employees and their families from profiting off meme coins.
In a detailed blog, Representative Liccardo singled out the TRUMP token, accusing the First Family of 'harnessing meme coins to exploit the public', raising alarms on insider trading and international sway.
The Securities and Exchange Commission (SEC) clarified that meme coins like TRUMP are not classified as securities, meaning they fall outside current SEC regulatory purview.
Earlier this year in January, President Trump reflected on his limited involvement with the token. 'I lack deep knowledge about it, other than initiating it,' Trump confessed to reporters at that time. 'I've heard it's thrived. I haven’t followed up.'
This newfound active promotion by the President represents a noticeable shift from his earlier detached stance. Legal experts express concern over what this indicates.
Digital media lawyer and AR Media CEO, Andrew Rossow, shared with Decrypt that these developments 'sadly establish a concerning precedent where public office is used for personal economic advantage.'
