Trump's Post Boosts TRUMP Token 13%

On March 23, Donald Trump posted a message on his social media platform, Truth Social, stating, “I LOVE $TRUMP.” This post triggered an immediate short-term rally in the Official Trump (TRUMP) meme coin, causing it to surge as much as 13% before slightly pulling back. The post was aimed at promoting the TRUMP token, which has been a subject of controversy and speculation in the cryptocurrency market.

One of the most significant impacts of Trump's post was on a cryptocurrency whale who had previously made substantial profits from trading TRUMP. According to data retrieved from an on-chain cryptocurrency analysis platform, this trader suffered a $207,000 loss within a single hour after the post. The details of the trade indicate that the investor spent $5 million USDC to buy TRUMP tokens right after the President’s post and sold them an hour later at a loss of $207,000. This is the same trader who once bought 5.97 million TRUMP for $1.09 million USDC and walked away with a $108 million profit during the token’s initial surge.

Trump’s promotion of the TRUMP token has raised concerns about potential insider trading and market manipulation. Transactions involving the meme coin and other tokens linked to the Trump family, such as one associated with First Lady Melania, have sparked debate over the influence of political figures in the cryptocurrency market. The lack of real utility in these tokens has further fueled speculation about their legitimacy and the potential for market manipulation.

The involvement of political figures in meme coins has also drawn legislative scrutiny. Representative Sam Liccardo is pushing the MEME Act, a bill aimed at preventing federal officials and their families from profiting off these digital assets. This legislative effort underscores the growing concern over the influence of political figures in the cryptocurrency market and the potential for market manipulation.

Despite the losses incurred by some traders, the TRUMP token has been one of the best-performing cryptocurrencies in the short term. As of the time of the post, the token was trading at $11.95, gaining over 9% in the last 24 hours and up 5% on the weekly chart. However, the token has experienced significant price swings, with a more than 70% drop from its record high.

Launched ahead of Trump’s inauguration, the TRUMP token runs on the Solana blockchain and has a total supply of 1 billion. An initial 200 million tokens were released to the public, while CIC Digital LLC and Fight Fight Fight LLC hold the remaining 800 million. The token is subject to a three-year phased release, starting with three to 12-month lock-ups, followed by daily unlocks over 24 months. In its early days, TRUMP skyrocketed from under $10 to $75, reaching a $15 billion market cap with significant trading volume.