The value of President Trump’s endorsed memecoin, TRUMP, experienced a dramatic spike on Wednesday, soaring by 58% in just one hour near the $15 mark for the first time since March.
This surge followed the announcement that the top holders of the token would be invited to an exclusive dinner with Trump at his golf club near Washington, D.C., on May 22. The event promises an intimate setting where Trump will discuss the future of cryptocurrency.
TRUMP Memecoin Event
According to the announcement on the token’s website, the top 220 holders of TRUMP will be included in the event, while the top 25 will enjoy a VIP reception and a guided tour of the White House.
The guest list will be determined by a leaderboard that tracks investors’ average holdings of the memecoin from April 23 to May 12. Currently, the leading holder possesses 400,005 tokens, valued at approximately $5.2 million.
Late last week, there was concern regarding the release of 40 million additional TRUMP tokens to its creators and CIC Digital, a company affiliated with Trump.
Such token unlocks can typically dilute market value by increasing supply, often leading to sell-offs as insiders seek to profit. However, despite concerns that the Trump team might sell off these tokens, blockchain data firm Chainalysis reported no significant sales over the weekend, which helped boost investor confidence.
Additionally, the scheduled tokens will remain locked for another 90 days, as confirmed by the Trump memecoin account on X (formerly Twitter).
Legal Uncertainty
Trump-linked entities are poised to hold 80% of the total supply of TRUMP tokens by 2028. Given that the price of the memecoin had plummeted by 90% since its initial launch, the upcoming dinner could be a strategy to stabilize the token’s price and enhance its value for future sales.
Dylan Bane, an analyst at research firm Messari, noted, “They likely want to avoid setting a precedent of aggressive sell-offs, especially with the majority of tokens still locked for the next 24 months.”
The dinner invitation has also sparked ethical questions regarding potential conflicts of interest associated with a presidential memecoin. During his first term, Trump faced scrutiny over the use of his hotels by individuals with matters pending before the government.
This time, his ventures into cryptocurrency, including the memecoin and his DeFi project, World Liberty Financial, could present new avenues for influence or bribery.
The legality of Trump’s memecoin remains uncertain. Jordan Libowitz, a vice president at the watchdog organization Citizens for Responsibility and Ethics in Washington, stated, “There isn’t a lot of precedent for the president to be the owner of a publicly traded asset, especially a meme asset.”
Despite these concerns, the White House has denied that the memecoin poses any ethical dilemmas. Anna Kelly, the deputy press secretary, asserted, “President Trump’s assets are in a trust managed by his children. There are no conflicts of interest.”
Featured image from DALL-E, chart from TradingView.com