Official Trump (TRUMP) coin continues epic rally as tokenomics questions emerge

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The Solana-based TRUMP memecoin, launched by President-elect Donald Trump, experienced a 3000% price surge merely two hours after its late Friday launch. However, a potential bump has emerged on its road as some have observed interesting details about the distribution details of the token’s total supply.

According to Coffeezilla, a crypto investigative reporter on X, 80% of the tokens 1 billion token supply is owned by one wallet, which netizens have linked to an affiliate company of The Trump Organization. Trading began for the TRUMP coin after Donald Trump announced the memecoin’s launch on his official social media accounts on Friday, hours before the Inaugural Crypto Ball took place. 

Official Trump experiences market value surge

According to Coingecko data, the token surged to a market capitalization of $4.3 billion, while registering $6.3 billion in trading volumes. TRUMP is changing hands at $22.00 currently. 

On-chain data from Lookonchain revealed that one whale, identified as “Fpj236…uVJr,” withdrew 61,205 SOL ($14.3 million) from OKX to purchase 1.27 million tokens at an average price of $11.25. Another whale spent 8.5 million USDC to buy 1.03 million tokens at an average price of $8.28. 

At current valuations, the holders have seen profits of about $11 million and $11.8 million, respectively.

Another trader, 90 seconds after Trump’s Truth Social announcement on the token, swapped 1.09 million USDC coins for 5.7 TRUMP, as reported by Lookonchain. The investor first sold about $404K worth of the coins and held on to 5.43 million tokens. He later sold 1.35 million tokens to retain 4.62 million, which is currently worth more than $99 million.

However, not all traders were able to capitalize on the extraordinary surge. Market data trackers also spotted activity from a whale who sold $3.86 million worth of the memecoin, only to see their holdings skyrocket to over $67 million at its price peak. This trader, as calculated by the market tracker, walked away with less than $3 million, a purported loss of over 2,000%.

Tokenomics raises centralization concerns  

The crypto community is questioning the legitimacy of the project. Some cite its unsustainable price uptrend in the last few hours, while others have observed “suspicious” details in the project’s tokenomics. 

On X, crypto investigative reporter Coffeezilla has raised some concerns regarding the distribution of TRUMP’s 1 billion token supply. According to Coffeezilla, 80% of the tokens are owned by one wallet, which netizens have linked to an affiliate company of The Trump Organization. 

The “locked” coins leave only 200 available for the public and project liquidity.

“Public distribution is 10%, Liquidity 10%. 6 Different Creator and CIC Digital Groups that unlock after 3-12 months and vest over 24 months,” the journalist explained, “That is a wild distribution for a meme coin.”

BitMEX co-founder echoed the opinion, calling the tokenomics “fugazi.” However, he also reiterated that political memecoins will become a norm in Trump’s second presidential tenure.

According to a recent update shared on Coingecko’s X account, the memecoin that launched within the last 20 hours has climbed to become the fourth-largest memecoin by market capitalization.

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