Author: Alex Liu, Foresight News
The launch of the official Meme token TRUMP by former President Trump is one of the most talked-about and wealth-generating events in the Web3 space recently. Upon review, it is evident that this was not a "spur-of-the-moment" decision, completed in 10 minutes on pump.fun, but a well-planned collaborative action with pre-existing cooperation with multiple protocols on Solana and related projects.
Which Solana-related projects were selected in this ecosystem collaboration? What highlights of theirs caught the attention of the President's team?
Jupiter's official post stated that "through close collaboration with the Meteora team, we ensured the perfect launch of TRUMP, which is obviously one of the largest token launches in crypto history. The issuance of TRUMP used the same LFG technology stack as the JUP issuance, including the DLMM pool, ILM design, and tight Jupiter integration."
Jupiter co-founder meow quoted this text and said: "LFG token launch tech stack: Meteora, Jupiter, Moonshot."
Jupiter
Jupiter is the largest DEX aggregator on Solana and the go-to place for on-chain players to trade tokens, serving as the "traffic entrance" of Solana DeFi. By providing "certified endorsement" of the official token in a timely manner, Jupiter reduced the risk of ordinary users buying fraudulent tokens, and made a strong endorsement of the "legitimacy" of the token in the early stage, allowing on-chain users to "go all in" with confidence.
Jupiter's LFG token launch platform is also one of the largest on-chain token launch platforms, having previously successfully launched tokens like JUP and CLOUD, so it's not surprising that the Trump team chose it to launch $TRUMP.
Previous projects on the Jupiter LFG token launch platform
Meteora
Meteora is a liquidity protocol, with the same founders as Jupiter (which can be understood as a product or shared team of Jupiter).
The launch of the TRUMP token utilized Meteora's DLMM pool. The DLMM mechanism is complex with many details, and we won't go into specifics, but let's talk about the core reasons why it was chosen by the Trump team:
- DLMM supports single-sided liquidity and ILM mechanism
ILM stands for Intuitive Launchpool Modeling, which can customize the price curve of token listings, helping to stabilize the distribution process of highly volatile tokens and maintain a certain degree of control over the market behavior of the token.
At the same time, due to the support of single-sided liquidity in DLMM, the Trump team was able to smoothly sell over $500 million worth of tokens to the market within a few hours by injecting 10% of the tokens into the TRUMP / USDC DLMM pool on Meteora, and established a TRUMP / USDC mainstream liquidity pool with over $100 million in liquidity on-chain.
- Liquidity pool creators can earn trading fees
The hot TRUMP token brought huge trading volume and LP fees. Just 5 hours after launch, the LP fees of the mainstream liquidity pool exceeded $12 million, ranking second only to Tether among all protocols on-chain, and this figure ultimately exceeded $20 million.
Image source: @ai_9684xtpa
Due to the DLMM mechanism, the Trump team is the creator of this mainstream liquidity pool, providing the initial single-sided liquidity, and as the Creator, they can also earn trading fees. In fact, the Trump team's LP fee income on the day of token launch exceeded $40 million.
Moonshot
Moonshot is a Meme coin trading platform, known for its large retail user base, easy on-ramp (supporting credit cards, Apple Pay, etc.), and listing effect. After the TRUMP token launch event, it quickly became one of the most popular finance apps in the US App Store, serving as the "retail entry channel".
When Trump simply announced the token launch on the Truth Social platform, everyone was still skeptical, thinking Trump's social media account might have been hacked, but Moonshot quickly authenticated the token, injecting a strong buying power and bringing a large influx of American retail investors (who are now wealthy if they "went all in").
Moonshot stated that after being recommended as the preferred purchase method on the TRUMP website, the platform's trading volume reached $400 million in 12 hours, and it also gained over 400,000 new users joining the Solana ecosystem through its app.
Moonshot authenticated TRUMP at $0.43, and TRUMP reached a high of $77.
The consecutive authentication by Moonshot and Jupiter dispelled the concerns of on-chain and off-chain players, and through their respective positions as traffic entrances in their respective fields, they brought strong purchasing power to the token.
Wintermute
According to on-chain address monitoring, the market maker for the TRUMP token is Wintermute. Market makers are responsible for maintaining the liquidity of token trading pairs and narrowing the bid-ask spread.
Wintermute itself is the market maker for multiple Solana ecosystem Meme coins, and is the primary market maker for many high-market-cap Meme coins, with rich experience in Meme market making. Its market making style is relatively active, which can be seen from the volatile price performance of TRUMP.
Image source: @ai_9684xtpa
Through the "presidential selection" of this set of moves, with the internet hype at full throttle, the Trump team made a killing. Have you learned your lesson?
