Over 7% of Crypto Traders Jump on Trump’s Token Bandwagon

The launch of Donald Trump’s meme coin has sent ripples through the crypto world, with its market cap surging to over $20 billion during its debut weekend. The former president’s unexpected foray into cryptocurrency has set a new benchmark for hype-driven token releases, according to fresh data from a blockchain tax platform.

The Numbers Behind the Frenzy

Based on a sample of 1,391 users from CoinLedger, a prominent crypto tax service, an impressive 7.47% of users traded the newly released Official Trump Token (TRUMP) within just two days of its launch. In contrast, the Melania Meme Token, launched the same day, saw activity from 1.9% of users in its initial 24 hours.

For context, the previously headline-grabbing meme coin MOTHER, backed by Australian pop star Iggy Azalea, saw only 0.7% of the market engage with it in the same timeframe. Trump’s offering has clearly captured significantly more attention, with its launch achieving nearly 11 times the engagement.

A President’s Token Hits New Highs

The Official Trump Token peaked at $73.43 on 19 January, before stabilising at around $40 following Trump’s inauguration. The price movement highlights the volatility typical of meme coins, raising questions about how it will perform as more tokens are released into circulation. Additional supply often dilutes the value of existing holdings, which will be a key metric to watch.

David Kemmerer, CEO of CoinLedger, noted the strong investor interest, stating, “It’s clear that traders saw an opportunity for profit, despite the uncertainty surrounding this launch.”

A Surprise Announcement

Trump announced the token with his characteristic flair on both X (formerly Twitter) and his own platform, Truth Social. The posts read:
“My NEW Official Trump Meme is HERE! It’s time to celebrate everything we stand for: WINNING! Join my very special Trump Community. GET YOUR $TRUMP NOW.”

The launch, however, came with fine print. According to the terms and conditions on the token’s website, the Trump tokens are categorically not an investment, security, or investment contract and are unrelated to any political campaigns or governmental agencies. Nonetheless, the Trump Organisation will reportedly derive revenue from trading activities associated with the token.

Market Impact

The token’s launch also provided a significant boost to the Solana blockchain, where the Trump Meme Token was minted. Solana’s native token (SOL) reached a record high of $292 during the weekend, adding to the excitement around this unexpected release.

FOMO in Full Swing

Despite initial scepticism from some corners of the crypto community, the Trump tokens quickly gained traction. Within hours of their release, the market cap soared to over $20 billion, with prices surging by 1,000% before retreating by 30%.

Interestingly, 80% of the token’s supply is reportedly held by Trump-affiliated entities, including CIC Digital and Fight Fight Fight LLC, a company co-owned by the Trump Organisation. The concentration of supply has raised eyebrows among crypto analysts, with concerns about centralisation and its potential impact on market dynamics.

As the cryptocurrency world continues to digest this unprecedented launch, all eyes remain on how the token’s value will evolve in the weeks ahead. Will the Trump meme token’s early success prove to be a lasting phenomenon or just another fleeting trend in the ever-volatile meme coin space?