Majority of TRUMP Cryptocurrency Owners Find Themselves Neutral or Slightly in Debt, According to Financial Analyst Who Labels Token Economics as Outdated
In the world of cryptocurrencies, the meme token associated with former U.S. President Donald Trump, $TRUMP, has been a subject of controversy due to its tokenomics.
The distribution of the 1 billion total supply is highly concentrated, with only about 20% released to the public at launch. The remaining 80% is reserved for Trump-linked entities and affiliates, leading to concerns about market manipulation and limited access for everyday investors. Over 90% of the combined TRUMP and MELANIA coin supply is controlled by just 40 wallets, primarily institutional or Trump-linked, while retail investors hold less than 10% of the supply and typically hold small amounts.
Another point of concern is the staggered and opaque unlock schedule. The remaining 800 million tokens are locked for 3 to 12 months post-launch, after which they unlock daily over two years. This massive, multi-year release schedule introduces perpetual inflation risk and uncertainty about the actual circulating supply at any given time.
Reports suggest that only 58 wallets, presumably insiders, saw $1 billion in profits, while over 750,000 retail wallets lost money. This has led to accusations that the project primarily benefits a small group at the expense of retail investors.
The project also lacks a white paper, development roadmap, and visible team, making its long-term viability and governance unclear. The absence of these elements is unusual for a project with such a large market cap and trading volume.
The crypto market generally favours projects that launch with fully circulating or near-fully circulating supplies, as this reduces the risk of sudden inflation (supply shocks) from future unlocks. In contrast, TRUMP's tokenomics deviate sharply from this preference. By locking 80% of the supply for insiders and staggering unlocks over years, the project introduces ongoing sell pressure and uncertainty, which can undermine retail investor confidence and lead to increased volatility.
At present, the circulating supply of USDC, the stablecoin issued by Circle, stands at $51 billion. Circle has minted an additional 3.5 billion USDC to provide liquidity for TRUMP. However, daily volume of TRUMP has dropped to $476 million, and at press time, TRUMP trades at $38, nearly unchanged over the past 24 hours.
As concerns about TRUMP's tokenomics continue to mount, it remains to be seen how this meme token will fare in the future. The lack of transparency and fairness in its distribution structure, combined with the potential for market manipulation, pose significant risks for retail investors.
- The controversy surrounding the $TRUMP meme token extends to the realm of general-news, as concerns about its tokenomics continue to mount, with questions about transparency, fairness, and potential market manipulation in the distribution structure.
- In the world of defi and finance, the $TRUMP token's tokenomics have raised eyebrows among investors, particularly retail investors, due to the highly concentrated distribution of its supply, which has left most of the coins in the hands of institutional or Trump-linked entities, while everyday investors have minimal access.
- In the broader context of business and politics, the Trump-linked crypto project's Tokenomics have sparked widespread criticism, with the massive, multi-year release schedule, lack of transparency, and perceived favoritism towards a small group of insiders creating uncertainty and increased volatility, harming retail investors' confidence.
