Donald Trump’s Solana-based meme coin, officially named TRUMP, is on the verge of its first major token unlock, raising speculation about whether the asset will pump or dump.
According to crypto analytics platform Tokenomist, 40 million TRUMP tokens, worth approximately $320 million at current prices, are scheduled to unlock on April 18. This release will significantly inflate the token’s circulating supply by 20%, potentially triggering selling pressure in the market.
TRUMP Unlock Could Be a Price Tipping Point
Sidney Powell, co-founder and CEO of Maple Finance, explained to Decrypt that unlock events are typically bearish, as they reduce an asset’s scarcity and demand must increase to maintain price levels.
Powell noted that TRUMP’s unlock schedule, which gradually ramps up circulation from 200 million to 1 billion tokens over 36 months, may worry some investors. Although the unlock is not unusual in size, the daily release of $4 million in TRUMP tokens post-April 18 until July could steadily add pressure.
“If you saw a bigger cliff, you’d be more worried,” Powell said. “But once tokens start to unlock, more people will sell.”
A Unique Holder Base Could Limit Sell Pressure
However, TRUMP’s holder base is unlike most crypto projects. Data from Chainalysis shows many wallets bought TRUMP as their first altcoin on Solana, suggesting less experienced investors who may be less inclined to sell immediately. This dynamic might temper the bearish effects of the unlock.
As of Friday, TRUMP was trading at $8.13, according to CoinGecko, up 3.7% in 24 hours but still down nearly 89% from its $73.43 all-time high reached shortly after launch on January 17.
Hype vs. Reality: What Comes Next for TRUMP?
Despite the looming unlock, the project retains a $1.6 billion market cap, which Matthew Nay, research analyst at Messari, called “amazing” for a meme coin that relies heavily on vibes over fundamentals.
Unlock events sometimes lead to artificial pumps through social media campaigns by VCs or insiders. Nay noted that while Trump has previously promoted the token online, he doesn’t expect “any classic token unlock pump” this time around.
Meanwhile, fewer than 13,000 wallets currently hold over $1,000 worth of TRUMP, and more than 191,000 wallets have already sold off, according to a Dune dashboard tracking on-chain activity.
Despite that, the token maintains real-world utility, enabling holders to buy products on Trump-affiliated sites like GetTrumpWatches.com, GetTrumpFragrances.com, and GetTrumpSneakers.com.
Whether the upcoming token unlock spells doom or delivers an unexpected rally remains to be seen. But as with most meme coins, volatility is guaranteed.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
