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Sell-Off Begins? Trump Token Sees Cash-Outs Before Memecoin Dinner

Investors poured almost $2 billion into a new memecoin linked to US President Donald Trump. They did it in a rush to secure one of the 220 spots at a private dinner on May 22 at his Virginia golf club. But as soon as the cutoff hit, some big holders began selling off. That move left observers wondering whether the dinner was worth the cost.

Investors Racing For Invitations

According to blockchain data, about 34 of the top 220 token holders had dumped most of their stakes by Monday evening, just hours after the window to qualify closed. They had hoped owning TRUMP coin would guarantee them a seat at the table. Many seemed to think twice once the deadline passed.

Sudden Sell-Off After Cutoff

Based on reports from crypto tracker Inca Digital, the token’s price plunged right after the cutoff on May 12 before clawing back to finish Tuesday up nearly 9%. Prices can swing hard when demand drops. You buy high to secure the prize, then you sell before the next fall. It’s a risky move, but that’s how memecoin markets often behave.

Ethics And Regulation Questions

The idea of paying with a memecoin to meet a president has generated plenty of heat. Democrats, ethics experts and crypto lobbyists have warned that corporate backers or foreign players could buy influence. They point out that memecoins sit outside the SEC’s reach because they’re framed as collectibles. That puts them in a murky spot when politics and money mix.

Trading Fees Fuel Profits

The Trump Organization and its partners aren’t just standing by. According to Chainalysis, they’ve taken in more than $320 million in trading fees since launch. Over $1 million of that came after the dinner invitation was announced. On April 23, investors snapped up roughly $1.7 billion worth of tokens. Fees add up fast when volumes spike.

Who’s At The Top

A leaderboard on the TRUMP site shows an account named “Sun” as the biggest holder. That wallet has been traced to HTX, the offshore exchange advised by crypto billionaire Justin Sun. More than half of the top holders appear to be overseas. Even usernames, like one investor called “noah” at No. 25, can’t hide real-world ties.

Corporate Moves And The Road Ahead

One public company, Freight Technologies of Houston, said it plans to buy $20 million in tokens. Its CFO pointed out they’re not after dinner invites. The move is part of a “digital asset strategy,” the CEO said, to push for fair trade between Mexico and the US.

Meanwhile, the memecoin team is rolling out crypto collectibles and a rewards points program for top holders. They’ve teased more promos soon. It looks like this is only the start of the TRUMP experiment.

Featured image from The Etiquette Consultant, chart from TradingView



from Bitcoinist.com https://ift.tt/bIJRKNH
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