Blockchain analytics firm Chainanalysis shared new data today that paints a stark reality about the Trump Crypto meme coin. Out of the $TRUMP crypto token, 58 crypto wallets made more than $10 million, while 764,000 wallets lost money. Smaller investors who bought into the digital asset were hit disproportionately hard by these losses. Since it launched in January, the token’s market value has varied wildly.
Key-Takeaways:
- However, for every 764,000 small investors who lost money on Trump Crypto, just 58 wallets pulled in over $10 million each to the tune of $1.1 billion in profits.
- Announcing an exclusive dinner with President Trump and White House tour for top holders spiked the token’s value 50%.
- The token’s structure as well as potential conflicts of interest are already the subject of a formal Senate investigation.
- Despite requiring all the project’s token to vest over a 5 year period, project insiders have collected over $324 million in trading fees.
Turns out the White House Dinner had a token surge.
The current disparity of the meme coins in the crypto space is a clear indication of how much risky they are in the market. Less than 60 of the approximately 2 million wallets holding the token profited massively, coming out with $1.1 billion. At the same time, hundreds of thousands of everyday investors saw their investments shrivel.
Following announcements of exclusive perks from $TRUMP token, interest almost jumped over 50%. The 220 biggest holders of the project were promised black tie dinner with President Trump. The 25 of these wallets (whose wallets have the largest balances), will be treated to a White House tour during this Trump National Golf Club event coming up on May 22.
With this announcement, the token’s market cap spiked briefly to $2.7bn. After that, the value has settled down around $2.17 billion. After the dinner announcement of token, about 54,000 new wallets purchased the coin. While the broader crypto markets take a turn for the worse, since mid April 100,000 new wallets bought $TRUMP.
Regulatory Scrutiny Intensifies
But regulation and ethical concerns are piling up on the Trump branded meme coin. The token is being probed formally by the Senate’s Permanent Subcommittee on Investigations. The digital asset’s ownership structure and revenue model are investigated by them. Democrat House members recently walked out at a crypto hearing involving the matter.
Lawmakers are apparently seeing several red flags with the token. These includes promotional posts from the president himself and the dinner competition only for top holders. There have also been additional questions about connections to foreign investors, like from a state backed Emirati fund and crypto figure Justin Sun.
Insiders Profit Despite Vesting Restrictions
The structure of the token is heavily in favor of the insiders who are connected to the project. Right now, only 20% of the total token supply exists (is circulating in the market). According to the report, the remaining 80% is to stay in the hands of the Trump Organization or related entities under a three year vesting schedule.
These vesting restrictions do not stop insiders making a boatload of money from the project. The project’s creators have attracted over $324 million worth of trading fees to wallets connected to them since January. Code is baked into the token that sends a certain percentage of each transaction to these addresses. Such a mechanism makes profit regardless of price fluctuations.
Conclusion: Trump Crypto
Most of the token supply is controlled by Fight Fight Fight LLC and CIC Digital LLC. Insiders and the companies have reportedly agreed that their allocations won’t sell for several more months. However the transaction fees are kept collected from all the trading activity, this also includes the meme coins under Trump crypto management.
