The world of Web3 has been swept up in a frenzy overnight! Countless group members have shared jaw-dropping profit screenshots, and various KOLs have proclaimed "financial freedom", all because of the emergence of $TRUMP. This token, which skyrocketed 41,600% in just two days of its launch, not only has redefined the market's perception of MEME coins, but also makes one wonder whether Trump's "crypto revolution" is a wealth myth or a harvesting trap?
The Entire Trump Family Enters the Crypto World
Trump's sons' tokens have also emerged, such as Eric Frederick Trump's $Eric token and $BARRON, which have all achieved hundredfold gains.
Will the Highly Centralized $TRUMP Token Economy Become a Huge Sickle?
$Trump has indeed created many wealth myths, but can $Trump really develop in the long run? Currently, it doesn't seem certain.
The total supply of $Trump is 1 billion tokens, with an early liquidity of 200 million tokens. According to the official information, the remaining 800 million will be gradually released over the next 3 years (monthly unlocking). The biggest problem is that: 80% of the total token supply is held by two institutional entities: CIC Digital LLC, a subsidiary of the Trump Organization, and Fight Fight Fight LLC, a Delaware-registered company from January 7.
According to blockchain analyst Conor's on-chain data tracking, the Trump team has already sold $500 million worth of $Trump tokens, and the flow path of these tokens is basically selling to the market or as unilateral liquidity. Whether the assets sold and realized or used as unilateral liquidity will be reallocated to new assets is currently unclear.
Key Addresses:
DEV Address: Holding 1.8%, distributed 820 million tokens to four holding addresses 13 hours after Mint
Top Unlocked Address: Holding 80%, most likely corresponding to the locked portion of tokens: 2RH6rUTPBJ9rUDPpuV9b8z1YL56k1tYU6Uk5ZoaEFFSK
Liquidity Injection Addresses: Two addresses have jointly injected 134 million TRUMP as unilateral liquidity
Unclear Purpose Address: Received 30 million tokens and has remained inactive
The five addresses currently hold a total of 86.6% of the tokens.
Currently, the Trump team has already made a profit of at least $58 million through trading $Turmp, and including their holdings and controllable portion, their total assets exceed $50 billion. This highly centralized token control and asset management approach is indeed contrary to the "fairness spirit of Web3", but with the temptation of high multiples and endorsements, many people are still willing to try, or even blindly rush in. As for the token's future development plan, whether it will be linked to Trump's other industries or empower the exploration of certain Web3 scenarios, this is worth closely following as a reference for subsequent investment.
High Volatility and Concerns about a Capital Pool
From the early liquidity injection to the unilateral liquidity configuration, the market performance of $TRUMP is more dependent on the drive of FOMO sentiment. Some on-chain data analysis shows that some whales have realized tens of millions of dollars in profits through large-scale token operations in a short period of time, while ordinary investors face higher risks of chasing highs. Once the market enthusiasm subsides, this highly volatile MEME coin may quickly depreciate, leaving a mess behind.
The double-edged sword of politicizing cryptocurrencies
$Trump does not rule out the rogue tactics of US financial politicians
The recently hot Tik Tok is said to have been banned by the US, but soon after there was news of it being re-shelved. Will $Trump's tactics be the same? Has Trump made an unwritten agreement with some financial tycoons, using the heat of the presidential position to create stories and issue popular MEMEs? Although this has also been acknowledged by Trump's personal media, after the FOMO sentiment and the end of the profiteering game, will Trump use various reasons to clarify or dissociate the relationship? As a businessman, profiteering has always been Trump's means, and the author believes that this probability exists.
The future value of $TRUMP: worth betting on or staying on the sidelines?
Short-term performance: Driven by the celebrity effect and FOMO sentiment, $TRUMP may continue to attract capital inflows in the short term, especially in an environment of ample market liquidity. However, the risk of correction after high-multiple growth is also high.
Long-term potential: If $TRUMP can empower the token through real application scenarios and economic models, such as linking it to Trump's campaign activities or media business, its long-term value will be more supported. However, the project party has not yet clarified the subsequent planning, which undoubtedly casts a shadow over the long-term development of the token.
Investment advice: For ordinary investors, $TRUMP is more of a high-risk, high-return speculative opportunity than a long-term investment target. The market needs to take a rational view of this MEME coin craze centered on "political endorsement" and not blindly follow the trend.
Overall, there are too many Web3 hype and contrarian events, we still need to analyze the value of a token based on whether it conforms to economic logic, whether it has high transparency, whether the application scenarios are reasonable, and whether the distribution is fair. Of course, as a powerful public figure, Trump should be responsible for everything he expresses and does, rather than profiteering through various hypes. However, this has undoubtedly confirmed the US's reform attempts on the crypto economic and financial base, and I look forward to seeing more actual planning and pilot activities on Trump's official website, rather than just emotional and political endorsement products!
