Donald Trump's Official Memecoin Is About to Unlock US$320M of Tokens, Nearly 20% of the Total Supply

Donald Trump's official memecoin is about to unlock US$320M (AU$507M) worth of tokens, nearly 20% of the total supply

Donald Trump’s official memecoin is about to unlock US$320M (AU$507M) worth of tokens, nearly 20% of the total supply, in what may be the final blow to one of the most catastrophic memecoin launches of this cycle.

The unlock, scheduled for next week, will hand over a massive chunk of tokens to the team behind the project. Investors, many of whom already lost big in January, aren’t optimistic. The token is currently trading at US$8.28 (AU$13), down 83% since January 18 —just two days before Trump was sworn into office.

After hitting a high of US$13.44 (AU$21.37) on January 16, the TRUMP token has been on a downward spiral. At its peak, the token had 143,000 wallets holding over US$1K (AU$1.6K), and it attracted 817,000 total users. However, as the token bled value, user interest also waned.

As of August 10, wallets holding over US$1K (AU$1.6K) have fallen to just 12,000, while total TRUMP holders now stand at 637,000.

Chainalysis data previously showed that many wallets buying TRUMP were first-timers, likely new to crypto. That could limit some immediate sell pressure. The platform stated:

Many of the TRUMP token buyers on TRUMP chain appear to be making their first-ever cryptocurrency purchase. This suggests that the memecoin frenzy may have attracted a new generation of crypto investors.

Memecoin Market Slumps

TRUMP’s decline comes as the broader memecoin market continues to unravel. According to CoinGecko, the total memecoin sector has plunged from US$119B (AU$189B) in December to just US$50B (AU$79B) today. Most of the tokens that launched in this cycle followed the same formula: celebrity branding, insider allocations, and no real demand once the hype wore off.

Market depth data is equally bleak. Dune shows that 2% market depth for TRUMP, used to assess how much liquidity is available within a 2% price range, currently sits between US$980K (AU$1.5M) and US$2M (AU$3.17M).