Donald Trump’s Memecoin Faces Massive $320M Token Unlock Amid Record Low Price

U.S. President Donald Trump’s memecoin (TRUMP) will endure a main token unlock subsequent week, with the crew behind the undertaking set to obtain $320 million, round 20% of the circulating provide.

The unlock is perhaps one other blow for the 1000’s of buyers who reportedly misplaced a collective $2 billion after buying the token in January.

TRUMP presently trades at $8.03, having misplaced 83% of its worth since Jan. 18, two days earlier than Trump was inaugurated as president.

Token unlocks are usually bearish occasions, as they contain flooding the market with recent provide with out offering incentives to drive demand. However, generally, the market costs in these unlocks, forward of the discharge, resulting in costs falling to new lows heading into these occasions.

Dune information reveals that there are 637,000 distinctive holders of the TRUMP token, down from 817,000 when it launched. There are additionally now simply 12,000 wallets that maintain greater than $1,000 price of TRUMP, a determine that has dwindled considerably since Jan. 19 when 143,000 wallets held that quantity or extra.

It is unclear whether or not Trump and his crew will offload the unlocked memecoins subsequent week, though promoting on the open market could be catastrophic as 2% market depth, a metric used to evaluate liquidity over a 2% vary, is between $980K and $2 million, which means that $320 million of promote strain would ship value right into a dying spiral.

Memecoins, basically, have misplaced most of their hype following a cycle that was dominated by retail buyers seeking to “get rich quick” on newly minted memecoins, most of which had been launched in shady offers the place insiders would revenue whereas different buyers would lose out.

The memecoin market cap is down from $119 billion in December to $45 billion immediately, based on CoinMarketCap.