Trump’s token has taken the market by storm and fueled the memecoin mania even further. But was this price action purely driven by speculation or does the $TRUMP token have hidden fundamental value?
One way of determining if a token’s price is going to increase or decrease is by analyzing its tokenomics, which are the economic aspects of a project such as the token design and distribution.
The $TRUMP token has a maximum supply of 1,000,000,000 tokens of which 200,000,000, or 20% of the maximum supply was unlocked at launch. This means that 80% of the token supply will be introduced in the market, which usually isn’t a good sign as this implies future inflation and potential sell pressure. But let’s first talk about how the token is distributed.
As aforementioned, the maximum supply is 1,000,000,000 tokens, these tokens are distributed among eight categories.
Before diving into the vesting schedules and cliffs, let’s talk about who owns the remaining pie. Enter CIC Digital—an affiliate of the Trump Organization and, essentially, the creators of $TRUMP. In other words, the creators control 80% of the total supply. Why not lump this into one bucket? Because each allocation comes with its own unique unlocking period.
So, according to the tokenomics, all tokens should be in circulation after 36 months (3 years), in the image below you can see how this looks in a graph.
In all honesty, this might just be the worst tokenomics we’ve ever encountered—and we’ve seen a lot. Imagine this: 80% of the token supply is held by a single organization, just waiting to cash in. Translation? Significant selling pressure looms on the horizon. Case in point: in just three months, the cliff for CIC Digital 1 & 4 unlocks, releasing a staggering $1.2 billion worth of tokens at current prices ($30).
But here’s where things get interesting. Despite the potential sell-off, the growing consumer base for digital assets could absorb this pressure. According to Chainalysis, about 50% of Trump token holders have never bought Solana altcoins before. This token is clearly pulling in retail investors—and that leaves plenty of room for others to jump in. Furthermore, Trump is currently one of the most popular if not the most popular person in the world. So there is a chance every time he acts on something good or bad, he might attract new investors to his coin.
Although it’s memecoin, it’s not your typical memecoin as it's the official token of the PRESIDENT OF THE UNITED STATES. This makes it a little bit more complicated but also intriguing. He is one of the most recognized and powerful persons in the world with many linking his name to his memecoin. Could this association bring in new investors? Possibly. Could it help the token retain or even increase in value? Maybe.
However, one important thing, 80% of the token supply is concentrated in a single holding, this is and remains a massive red flag. Even though he is the president of the US, this doesn’t mean that he won’t dump on the market, especially as Trump has a long history of controversial ventures - businesses and universities.
So, there is certainly potential for the project, however, in our opinion, this is currently all based on speculation as the $TRUMP token doesn’t have any utility whatsoever. No revenue sharing, no tokenholder perks, no voting rights. Right now, you’d buy this token if you’re either a huge fan of Donald or just hoping to flip it for a quick profit.
So, while the project has potential, we advise investing with caution. And remember, this isn’t financial advice—just a little insight into the latest developments in digital assets.