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- TRUMP memecoin unlocks 40 million tokens worth $320 million on April 18.
- The token has plunged 83% since January, with heavy investor losses.
- A sell-off could pressure the already fragile market.
Donald Trump’s memecoin, TRUMP, will unlock 40 million tokens next week. This represents nearly 20% of the token’s current circulating supply. The value of the unlock stands at around $320 million. These tokens will go to the project’s team, not the public.
Markets greet token unlocks warily. They add quantity, which typically lowers price if demand doesn’t grow. Traders and investors worry about a sell-off. If the team were to sell its portion, the market may be under strong selling pressure.
The trading price for TRUMP today sits at $8.03. That’s an 83% drop from its high point in January. It went live just two days before Trump was sworn in. Since that time, the coin has experienced losses and criticism from numerous corners of the cryptocurrency universe.
Market Depth Shows TRUMP Vulnerable to Sell-Offs
The holders of TRUMP tokens have also declined significantly. There were more than 817,000 wallets holding the token in January. Now the figure has decreased to around 637,000. High-end wallets have nearly disappeared.
Only 12,000 wallets today have over $1,000 invested in the token. This represents a sharp fall from the 143,000 that existed originally. The drop indicates weakened investor confidence. Early investors anticipated making quick profits.
However, their sudden fall in value has left most with deep losses. Estimates are that investors have already lost some $2 billion since January. Liquidity remains another concern.
Trump’s market depth of 2% varies between $980,000 and $2 million. That implies that the market cannot handle sizable sales without incurring serious damage in terms of price. Selling part of the released tokens could bring the whole thing crashing down.
Memecoin Tokens Struggle After Initial Hype
Memecoin market downturn. It had stood at $119 billion last December. Today, it has plummeted to $45 billion. The majority of the tokens in that niche could not sustain attention after an initial spike.
It was the retail investors that propelled the last cycle of memecoin. They were looking to ride hype waves for quick gains. Many of these coins were, however, founded on shaky ground. Usually, insiders controlled major stakes and sold them at highs, while the common investors took the hit.
The next TRUMP unlock could be the next challenge for the world of memecoin. If the team decides to sell its portion, the market will experience a sharp correction once again. If not, investors will eagerly look for evidence of further damage.
Related Reading: Bitcoin Uncertainty and Recovery After Massive Long Liquidations
