Synopsis
Trump memecoins are set for a major unlock. This event could significantly impact the crypto market. Earlier, the token’s value surged and then crashed. Now, more coins will be available. Experts are unsure if this will cause another price drop. The Trump family has been actively involved in various crypto ventures. These ventures have accumulated substantial paper gains.
Crypto market participants are bracing for the release of a large swath of the memecoin first debuted by President Donald Trump just before his second inauguration that ended up whipsawing buyers.
The so-called token unlock scheduled for Thursday means that holders such as early investors or insiders who were restricted from selling earlier are now free to make the coins available for trading. Some 200 million Trump memecoins became available at launch on Jan. 17. On Thursday, another 40 million coins allocated to groups affiliated with the president will be unlocked. The total amount outstanding will balloon to 1 billion in less than three years.
In January, the price of the token soared after its surprise debut, swelling the market value of the coin to around $14 billion just two days after its issuance. It later crashed, losing about 90% of its value, as holders sought to quickly cash out the gains. While the token attracted billions of dollars of trading volume, it also stoked concerns about conflicts of interest and left market observes wondering what will happen next as more tokens go into circulation.
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TOP COIN SETSAI Tracker1.93% BuyCrypto Blue Chip – 50.29% BuySmart Contract Tracker-0.67% BuyWeb3 Tracker-19.93% BuyDeFi Tracker-35.47% BuyTOP COINS (₹) Solana11,824 (3.65%)BuyEthereum136,964 (1.74%)BuyXRP178 (1.51%)BuyBNB50,646 (0.84%)BuyBitcoin7,269,258 (0.65%)Buy“Once tokens are unlocked, sometimes there are dumps,” said Dylan Bane, an enterprise research analyst at researcher Messari. “Teams are less likely to do that, they are more likely to do that over time. But we just don’t know what their intent is. Obviously they don’t want negative press.”
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CIC Digital LLC, an affiliate of The Trump Organization, and Fight Fight Fight LLC collectively own 80% of the coins that are subject to the unlock schedule, according to the coin’s website.
A representative for CIC Digital didn’t immediately return a request for comment about the group’s intentions.
An immediate token dump is not a given. Trump memecoin’s price has actually risen, alongside most of the cryptocurrency market, nearly 3% over the past week, according to data compiled by .
“If they are working with proper market makers, the unlocks may be less important in the short-term,” said Edward Chin, co-founder of Parataxis. “Over the longer-term, the additional supply will weigh on price action, either pushing it lower or keeping it from moving meaningfully higher even as new demand enters.”
Crypto is notorious for memecoins, tokens with questionable inherent value that sometimes briefly surge if they catch a social media tailwind before sliding as attention turns elsewhere. Other memecoins have traced similar paths, with FRNT Financial recently noting that “Activity in this sub-sector has virtually collapsed, with leading, established assets in this cohort seeing significant drawdowns.”
Trump and his family have entered most corners of the crypto industry in recent months: non fungible tokens, a decentralized finance project, a proposed stablecoin, Bitcoin mining and two memecoins. Trump’s wife, Melania, issued a memecoin as well. The family’s various crypto projects are approaching $1 billion in paper gains.
