TRUMP Token Surges 12% After Trump Endorsement

The TRUMP token experienced a significant surge of 12% following an endorsement from former U.S. President Donald Trump. Trump, via his Truth Social platform, described the token as “the greatest of them all” and “cool,” which immediately captured the attention of investors. The endorsement led to a rapid increase in the token's value, rising from approximately $10.93 to around $12.25 within minutes of the post. However, the token has since retreated slightly and is currently trading at around $11.85, marking a 9% increase over the past 24 hours. This surge made the TRUMP token the best-performing cryptocurrency during Asian trading hours.

The endorsement also resulted in a spike in trading volume, with daily trading reaching over $1 billion, double the average volume of previous days. Despite this recent boost, the TRUMP token remains far below its peak value, down approximately 85% from its all-time high of $77 reached shortly after its January launch. The Solana-based memecoin was created on January 17, 2025, and quickly captured the crypto community’s attention, reaching a peak market capitalization of about $15 billion just two days after its launch.

The initial token distribution included 200 million TRUMP tokens, with plans to expand the supply to 1 billion tokens over three years. A Chainalysis report revealed that around 94% of TRUMP and MELANIA tokens are held by just 40 wallets, raising concerns about centralization within the token’s ecosystem. This concentration of ownership could allow a small number of “whale” holders to have a major influence over the token’s price.

The memecoin faces additional challenges in the coming weeks. Starting April 18, 40 million TRUMP tokens will be unlocked and enter circulation, representing about 4% of the total supply and valued at over $472 million. After this initial unlock, at least half a million TRUMP tokens will enter circulation daily until the end of 2027. Some investors worry that this unlocking schedule could increase selling pressure, as one investor commented, “Trump is shilling TRUMP coin on Truth Social… Seems like they are grabbing some exit liquidity before the unlock.”

The token has also drawn political attention. House Democrats have introduced the MEME Act, which aims to prohibit federal officials and their families from profiting off meme coins. Rep. Sam Liccardo specifically mentioned the TRUMP token, accusing the First Family of “exploiting the public through meme coins” and warning about potential insider trading and foreign influence. The Securities and Exchange Commission (SEC) has stated that memecoins like the TRUMP token are not securities, meaning they are not subject to SEC oversight under current regulations.

Earlier this year, President Trump commented on his limited knowledge about the token, stating, “I don’t know much about it other than I launched it. I heard it was very successful. I haven’t checked.” His recent direct promotion marks a shift from his earlier stance of limited involvement, raising questions among legal experts about the precedent it sets. Andrew Rossow, a digital media attorney, noted that these posts “unfortunately set a dangerous precedent for leveraging public office for personal financial gain.”