TRUMP Memecoin Drops 2.7% Ahead of 20% Supply Unlock

Tokens worth 20% of the current supply of the TRUMP memecoin, launched by Donald Trump, are set to be unlocked, causing the token to drop 2.7% this week. This event is anticipated to occur tomorrow, according to data from Tokenomist. The impending increase in supply has raised concerns among investors, leading to a decline in the token's value.

Despite the overall decline in the TRUMP token's value, memecoins as a category have seen a surge in popularity. Out of the 10 largest memecoins by market capitalization, TRUMP is the only one that has experienced a decrease in value this week. This trend highlights the volatility and unpredictability of the memecoin market, where investor sentiment can significantly impact token prices.

Tomorrow, 40 million TRUMP tokens, valued at around $300 million, will be made available to the token’s creators, as well as CIC DIGITAL, a Trump-owned entity involved with the president’s NFT collection. The decision on whether to sell these tokens on the open market or hold onto them for longer remains unclear. Trump's personal interest in the memecoin has been minimal, with only one online post about it, where he described it as “SO COOL!!!”. When questioned about the token, Trump expressed limited knowledge, stating that he launched it and found it successful.

Despite the lack of engagement from Trump, there are still investors holding onto the TRUMP token. The token has a market capitalization of over $1.5 billion, surpassing other memecoins like TIA, ARB, and JUP. Some investors view the token as a collectible or a sentiment indicator for Trump's presidency. However, the token's largest single-day increase occurred on Valentine's Day, coinciding with the launch of the LIBRA token by Argentine President Javier Milei, rather than any significant events related to Trump.

The best investment thesis for the TRUMP memecoin appears to be the possibility of Trump posting about it on Truth Social again. This highlights the speculative nature of memecoins, where investor sentiment and external factors can significantly influence their value. As the unlocking of 40 million TRUMP tokens approaches, investors will be closely monitoring the market for any signs of a potential sell-off or increased volatility.