From Inauguration Highs to 90% Losses

Investors in the Official Trump (TRUMP) memecoin have collectively lost an estimated $2 billion since the token's launch three months ago

Investors in the Official Trump (TRUMP) memecoin have collectively lost an estimated $2 billion since the token’s launch three months ago, as the politically-themed cryptocurrency has plummeted over 88% from its peak. The losses come as the token faces one of the most significant supply increases in memecoin history, with 40 million new coins entering circulation on Wednesday following the end of a three-cliff period, according to CoinDesk.

The substantial losses highlight the extreme volatility and risks associated with presidential-themed memecoins, which have created unprecedented challenges for traders attempting to navigate the intersection of cryptocurrency markets and political events. Despite the overall negative trend, the token has shown surprising resilience in the last 24 hours, gaining approximately 9% in value despite the massive token unlock.

From Inauguration Highs to 90% Losses

TRUMP coin debuted with tremendous enthusiasm on President Trump’s inauguration day, reaching a staggering $13 billion market capitalization. However, the token has since experienced a catastrophic 90% devaluation, according to DailyCoin, with prices falling from over $71 in January to around $8.40 on Wednesday.

The dramatic collapse has primarily affected retail investors, who make up the majority of TRUMP holders. On-chain data reveals there are approximately 636,000 TRUMP token holders, but only 12,285 wallets contain more than $1,000 worth of the cryptocurrency. This distribution pattern suggests that losses are concentrated among smaller investors rather than large institutional players.

The price decline has been attributed to several factors, including the token’s inflationary tokenomics, weak market structure, and diminishing speculative interest following the initial launch hype. The lack of fundamental utility beyond political association has also been a factor in the sustained downward pressure.

Dangerous Liquidity Conditions Create Risk

Adding to investor concerns are the thinly traded liquidity conditions surrounding the TRUMP token. Market data indicates that just $1.3 million in trading volume could move the price by 2% on major exchanges, creating the potential for extreme price volatility and making orderly exits difficult for larger holders.

This liquidity problem becomes even more critical as the token’s supply increases dramatically. Wednesday’s unlock represents just the beginning of substantial inflation pressure, with approximately 4.1 million additional TRUMP coins being released daily starting Wednesday and continuing until mid-2028.

Technical analysts have identified the $6.80 to $7.00 range as a critical support zone that will determine whether TRUMP can maintain its price during this inflationary phase. A break below this level could trigger another significant leg down, potentially bringing prices below $5.00, according to crypto analyst Crypto Master 786.

Unverified Rumors Swirl Around Presidential Involvement

As investors grapple with the mounting losses, social media has been abuzz with unverified rumors about a possible event for large token holders being organized by President Trump himself. These claims remain purely speculative and unconfirmed but highlight the unique dynamic of politically-themed cryptocurrencies where market sentiment can be heavily influenced by perceived presidential involvement.

The administration has maintained an ambiguous relationship with the cryptocurrency, neither directly endorsing nor disavowing it. This regulatory uncertainty adds another layer of complexity for investors attempting to navigate the token’s future prospects.

The token’s association with political events creates additional unpredictability, as traders like 0xTardio anticipate potential short-term price pumps triggered by bullish political developments, such as the recently announced 90-day global tariff pause. However, these temporary rallies have done little to offset the overall downward trend.

Inflationary Tokenomics Create Persistent Pressure

The TRUMP token launched with only 20% of its total supply available, with 10% dedicated to providing initial liquidity. According to the project’s tokenomics, the remaining 80% of the planned 1 billion maximum supply will be released gradually over three years.

Wednesday’s unlock marks the beginning of the accelerated distribution phase. The daily release schedule will add approximately 493,150 TRUMP coins to the foundational team’s holdings each day, potentially creating selling pressure if these tokens are moved to exchanges.

This extended distribution schedule means that Wednesday’s unlock, while significant, represents just a fraction of the total supply that will eventually enter circulation. The persistent inflationary pressure could present ongoing challenges for the token’s price stability and recovery prospects.

Despite the enormous losses and challenging tokenomics, some investors remain hopeful that the political association will eventually drive renewed interest and potential price recovery. However, market analysts caution that the combination of thin liquidity, massive supply increases, and lack of fundamental utility beyond speculation presents substantial challenges for any sustainable recovery.

News data source: kdj.com

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