Taking a closer look at the $TRUMP token

Tobias Datema
Tobias Datema
28 January 2025
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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 tokenomics of the $TRUMP token

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. 

 

  • Liquidity: The project allocated 100,000,000 $TRUMP tokens towards liquidity and these tokens didn’t experience a cliff or unlocking period and all tokens hit the market at the token generation event, the official moment the token is launched on the blockchain. 
  • Public Distribution: The project also allocated 100,000,000 tokens for public distribution and this category as well didn’t experience any cliff or unlocking period. For the fast learners among us, these two categories sum up to 20% of the total supply, corresponding to the 200,000,000 tokens which are currently in circulation.

 

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.

 

  • Creators & CIC Digital 1: The project has allocated 360,000,000 tokens of which 10% is unlocked after 3 months after the launch date, followed by a daily vesting over 24 months. Additionally, this is also the biggest allocation.
  • Creators & CIC Digital 2: The project has allocated 180,000,000 tokens of which 25% is unlocked after 6 months after the launch date, followed by a daily vesting over 24 months.
  • Creators & CIC Digital 3:  The project has allocated 180,000,000 tokens of which 25% is unlocked after 12 months after the launch date, followed by a daily vesting over 24 months.
  • Creators & CIC Digital 4:  The project has allocated 40,000,000 tokens of which 10% is unlocked after 3 months after the launch date, followed by a daily vesting over 24 months.
  • Creators & CIC Digital 5:  The project has allocated 20,000,000 tokens of which 25% is unlocked after 6 months after the launch date, followed by a daily vesting over 24 months.
  • Creators & CIC Digital 6:  The project has allocated 20,000,000 tokens of which 25% is unlocked after 12 months after the launch date, followed by a daily vesting over 24 months.

 

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.

 

Hodl's opinion on $TRUMP

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. 

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