Trump’s official memecoin, TRUMP, surged more than 8 percent in the past 24 hours, surprising traders after a major token unlock event.
On Thursday, 40 million new tokens worth approximately $320 million were released, increasing the circulating supply from 200 million to 240 million.
Token unlock defies market expectations
The unlocked tokens comprised 4 percent of the project’s total supply cap of one billion. Despite fears of downward pressure from early holders selling their tokens, TRUMP’s price moved from $7.54 to around $8.30 by late Friday. This rise came as a surprise, especially during the low-liquidity Easter weekend. Data from CoinMarketCap indicated that just $1.3 million in trade volume was enough to shift the coin’s price by 2 percent on major exchanges, showing how small trades can create sharp price changes in thin markets.
The unlocked allocation belonged to the coin’s developers and CIC Digital LLC, the corporate entity managing Trump’s licensing agreements. Token unlocks often trigger price drops, but market sentiment stayed positive in this case.
Purpose and community buzz remain unclear
The TRUMP token still lacks a clearly defined purpose beyond price speculation and symbolic engagement. The project’s website describes it as a token representing “support for” Trump and associated values and visuals. It emphasizes that the token is not meant to be an investment or security. Despite this, online communities remain active, with speculation about a potential private event for major token holders. However, there has been no confirmation of such plans.
Blockchain analytics platform Dune reports that 636,000 wallets currently hold the token, although only around 12,000 wallets contain more than $1,000. Research from K33 earlier this year criticized the token’s economic model as weak, noting its brief surge to $71.
Scrutiny and political implications mount
Regulatory attention has followed TRUMP’s growing popularity. Three days before re-entering public office, Trump posted support for the token on social media. Public Citizen has since called for an investigation into that promotion. Reuters reported in February that nearly $100 million in trading fees were collected within two weeks of the token’s rise, citing blockchain research firms.
The coin has also drawn the attention of lawmakers. House Financial Services Chair French Hill warned that the Trump family’s increasing involvement in crypto may complicate efforts to regulate stable digital assets and related decentralized finance projects.