TRUMP meme coin unlocks $321.6 million worth of tokens to its team

Members of the team behind the TRUMP meme coin, introduced by President Trump prior to his inauguration, are set to receive $321.6 million worth of token unlocks

Members of the team behind TRUMP (TRUMP), the meme coin introduced by President Trump prior to his inauguration, are set to receive $321.6 million worth of token unlocks in the upcoming week.

This substantial TRUMP unlock, which constitutes over 60% of the total insider unlocks scheduled for next week at $519 million, will be closely watched by crypto investors.

Meanwhile, team members of Fast Token (FTN) and Arbitrum (ARB) are also poised to unlock $80.6 million and $27.2 million, respectively.

Despite the prevailing risk-off sentiment in the crypto market, the official Trump (TRUMP) token is preparing for the release of over $320 million worth of tokens to its team members.

This move has raised concerns about the potential impact on TRUMP’s value as the market anticipates a possible decline.

Token unlocks typically exert downward pressure on prices if the newly unlocked supply is swiftly sold on the market. Investor sentiment towards unlocks can quickly turn negative, leading to selling pressure as market participants adjust prices to accommodate the influx of new tokens.

The impending unlock could exacerbate the challenges faced by TRUMP holders, who have already seen significant declines in recent months amid the broader risk-off sentiment in the crypto market.

Since reaching a high of $73.43 on January 19, TRUMP has decreased by 89% and is currently trading around $8.05, according to CoinGecko data.

The forthcoming unlock, involving 40 million TRUMP tokens, will increase the meme coin’s circulating supply to approximately 240 million TRUMP, still less than its total supply of 1 billion TRUMP. This development suggests a potential escalation in downward pressure on the token, especially if further unlocks occur in the present market conditions.

The decline observed in TRUMP aligns with the broader trend in the meme coin sector, which has seen a substantial decrease from a market cap of $127.26 billion in December to $45.64 billion as of Friday, according to CoinMarketCap data.

Along with the significant TRUMP unlock, members of Fast Token (FTN) and Arbitrum (ARB) are also set to receive new unlocked supplies amounting to $80.6 million and $27.2 million, respectively.