Massive $Trump Token Unlock Amid Trump & His Family's New Obsession

From NFTs to stablecoins to mining to memecoins, name it, and you will see Trump's or his family's interests in crypto-related investments, with unrealized profits of nearly $1 billion from such ventures.

On the eve of Trump's inauguration, he and Melania introduced their own memecoins, a speculative segment of the cryptocurrency market characterized by assets that lack significant intrinsic value.

Prices have sharply declined following a significant increase, which probably resulted in over $11.4 million in fees for organizations associated with the President in January.

His memecoin, $Trump, is set for a significant unlock this week, with the project team receiving $320 million, or around 20% of the current supply.

We expect the unlock to further pressure the price of the $Trump token, which is currently trading at a record low.

Thousands of investors may take another hit with the unlock, as they allegedly lost $2 billion in total after buying the token in January.

The token is trading around $8 and has plummeted 83% since January 18, two days before Trump's inauguration as US president.

Unlocking tokens is usually a negative development because it adds more supply to the market without offering incentives to boost demand. But occasionally, the market values of these unlocks drop to new lows just before the release, causing prices to plummet.

According to Dune data , the number of unique TRUMP token holders has decreased from 817,000 at launch to 637,000.

Additionally, the number of wallets holding more than $1,000 worth of TRUMP has decreased dramatically from 143,000 on January 19 to roughly about 12,000 now.

Whether Trump and his team decide to sell the unlocked memecoins this week is still up in the air.

However, if they did decide to sell them on the open market, the price would crash due to the enormous amount of sell pressure—$320 million—because the 2% market depth, a measure used to assess liquidity over a 2% range, is between $980,000 and $2,000,000.

Retail investors seeking to "get rich quick" on newly created memecoins dominated the cycle, leading to unethical deals that benefited insiders while other investors lost out.

As a result, memecoins, in general, have lost most of their excitement.

Today, the market cap for memecoin is $45 billion, down from $119 billion in December, as reported by CoinMarketCap.

The Trump family's crypto investments have sparked concerns about possible conflicts of interest, considering the President's influence on regulatory matters.

However, Eric Trump has denied any conflict of interest with the family's crypto investments narrative.

Trump and his family's holdings have elicited varied responses within the crypto industry.

Since Trump's U-turn toward the digital asset sector shifted, he solicited and received substantial financial support from crypto industry heavyweights and enthusiasts during his election campaign.

Trump has continued to promote his memecoin on Truth Social, appointed David Sacks and Bo Hines to represent industry interests, and signed executive orders to assist his goal of making the US the crypto capital of the planet.

NFTs in December 2022 Started Trump's Crypto Love

Trump's crypto craze started after developing an attachment to his digital collectables, or nonfungible tokens (NFTs).

Financial disclosures last year showed the president made millions of dollars from his NFTs and hosted dinners for his supporters who bought them.

In the run-up to the US election, the Trump family unveiled their cryptocurrency venture, World Liberty Financial.

Since its start, the project has amassed millions of dollars in Ether and Tron, among others, but it has failed to deliver on its DeFi promises, such as the ability to lend cryptocurrency directly to users.

According to the offering document , a company associated with Trump is eligible for a fee of 75% of net revenue, which includes token sales.

The Trump family, via their company DT Marks DeFi LLC, owns 60% of World Liberty's equity stake. After concluding the second round of token sales last month, the company has successfully raised $550 million.

ETFs, Stablecoin & Bitcoin Mining After Inauguration

In early February, Trump Media & Technology Group Corp. announced its application for trademarks related to investment products that align with Trump's priorities, featuring a "Truth.Fi Bitcoin Plus ETF."

The company has announced its collaboration with Crypto.com to introduce the ETF. In the month leading up to Trump's election victory, the SEC issued a notice indicating its intention to pursue legal action against Crypto.com for functioning as an unregistered securities exchange.

The company reported that it concluded its investigation in March.

WTF revealed its intention to introduce a dollar-pegged stablecoin named USD1, set to be initially minted on the Ethereum and Binance Smart Chain blockchains.

As World Liberty states, the token will be supported on a one-to-one basis by short-term US Treasuries, dollar deposits, and various cash equivalents.

The decision was made right before significant stablecoin legislation progressed through the House Financial Services Committee, with cryptocurrency firms advocating for stablecoins to enhance efficiency and reduce the costs of global financial transactions.

The legislation, which had been stalled in Congress for years, gained new momentum following the substantial financial contributions from the crypto sector during the 2024 election and President Donald Trump's strong backing.

The House Financial Services Committee approved the bill with a vote of 32-17. A few Democrats collaborated with Republicans to advance the measure to the House floor for evaluation in the upcoming months.

The Trump family announced its intention to initiate a venture centred around Bitcoin mining in collaboration with Hut 8 Corp.

The US Bitcoin mining sector has turned into a multibillion-dollar industry.

Bitcoin miners were among the initial backers of Trump's campaign. In June 2024, candidate Trump convened a group of mining executives at Mar-a-Lago, expressing his commitment to champion their interests from the White House.

So, while the sector enjoys a friendly administration, the question remains whether Trump and his family's business ventures, which have expanded to almost every part of the crypto industry, constitute conflict of interest charges.

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