Trump Memecoin Unlock Boosts Supply 45% Amid Crypto Week

The imminent unlocking of a Trump-themed memecoin is set to add new layers to the ongoing debate over US legislation during what is being referred to as 'crypto week.' This week, Republicans are rallying behind three digital asset bills, which could significantly impact the crypto landscape.

According to multiple sources, 90 million Official Trump (TRUMP) tokens, valued at over $900 million, are scheduled to be unlocked this week. This event allows holders to sell the memecoin, which was launched in January ahead of Trump's second-term inauguration. The unlocking process will boost the memecoin’s circulating supply by 45%, marking one of the most significant increases since 200 million tokens were made available at launch on Jan. 17.

The token unlock follows a procedural vote loss by Republicans to advance bills aimed at regulating payment stablecoins, barring the exploration of central bank digital currencies, and establishing a crypto market structure. Trump claimed to have convinced dissenting members of his party to change their votes when the matter returns to the floor of the House of Representatives on Wednesday.

The memecoin project initially stated that one billion tokens would be gradually unlocked over three years. Data from Nansen.ai showed the price of TRUMP surged to $10.31 from $9.40 on Wednesday before returning to $10.09 at the time of publication.

On Wednesday, a majority of House lawmakers voted to reconsider a package of bills, including the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, the Anti-CBDC Surveillance Act, and a crypto market structure bill called the CLARITY Act. A vote on the resolution failed in the House on Tuesday but was reportedly revived in response to Trump pressuring many of the 13 Republicans who voted nay.

Trump has faced criticism from many members of Congress for his crypto ventures, including the memecoin and hosting a dinner for its top holders, his family’s stake in World Liberty Financial, and claims that his policies are intended as a payoff to cryptocurrency executives and companies who backed his 2024 campaign.

“The $TRUMP memecoin serves NO purpose,” said California Representative Maxine Waters’ office on Sunday. “It only has value because of Trump’s name and public profile. It exists only to extract money from investors and sell access to the White House.” Waters and other Democrats in the House have proposed amendments specifically to address what they called “crypto corruption” facilitated by Trump and members of Congress. It was unclear at the time of publication whether any of the provisions will have enough support to pass.

The TRUMP memecoin is poised for a significant event as a substantial number of tokens are set to be unlocked during what is being referred to as 'crypto week.' This unlocking process is expected to increase the memecoin's circulating supply by 45%, marking one of the most notable increases since its launch. The event is anticipated to test the demand for the politically charged memecoin, which has garnered attention due to its association with Donald Trump.

The unlocking of these tokens represents a potential turning point for the memecoin, as it could influence its market dynamics and investor sentiment. Despite the unlocked tokens constituting less than 1% of the total circulating supply, the event is seen as a critical moment for the memecoin's future. The political undertones of the TRUMP memecoin add an additional layer of complexity, as it is closely tied to the political landscape and the actions of its namesake.

The significance of this event is further amplified by the fact that it coincides with a period of heightened activity in the crypto market, often referred to as 'crypto week.' This period is characterized by increased trading activity and market volatility, making it a pivotal time for any cryptocurrency, including the TRUMP memecoin. The unlocking of the tokens during this time could either bolster the memecoin's position in the market or expose it to increased scrutiny and potential challenges.

The political implications of the TRUMP memecoin cannot be overlooked. The memecoin's association with Trump has made it a subject of interest for both crypto enthusiasts and political observers. The unlocking of the tokens could have broader implications for the political discourse surrounding cryptocurrencies and their regulation. The event serves as a reminder of the intersection between politics and the crypto world, where the actions of political figures can have a direct impact on the market.

The upcoming token unlock is expected to be a test of the memecoin's resilience and its ability to withstand market pressures. The increased circulating supply could lead to a shift in the memecoin's value and its perception among investors. The event is also an opportunity for the memecoin to demonstrate its staying power in the volatile crypto market, where new tokens and trends emerge constantly.