Even Donald Trump’s cryptocurrency, the TRUMP coin, has seen a drastic increase in daily trading volume. This comes on the heels of the announcement of an invitation-only dinner event at his golf club in Washington, DC. As expected, this high-profile event garnered loads of media attention. Participants had to purchase a minimum of 4,196 units of TRUMP coin—which would set them back approximately $54,000. The dinner allowed holders of the coin to meet the former president, which has raised questions about the future value and utility of the digital asset.
According to Nansen research analyst Nicolai Søndergaard, just nine smart money traders bought into the TRUMP coin. Such a lack of participation has left many market watchers scratching their heads. After news of the dinner event got out, smart money started dumping those tokens, probably dodging a major price drop. Analysts noted that almost 50% of the holders of TRUMP coin dumped their holdings. All of this happened immediately after they RSVP’d to the main dinner.
Significantly, of the 220 attendees, 100 or so had already dumped their TRUMP coins before the dinner. This was true, too, for 17 of the top 25 VIP holders. Those top holders averaged about 325,000 TRUMP coins each — worth about $4.2 million per person. This selling trend signals a lack of long-term conviction in the TRUMP coin as an investment asset among its holders.
One such VIP, this one named Woo, recently made headlines for cashing out a profit of $2.5 million from his TRUMP investments. He later quickly moved those profits to the crypto exchange Binance. These large trades suggest that many investors are locking in profits in the short-term. In short, they’re choosing to cash in now rather than wait for the chance at future appreciation.
On May 12, the event organizers pleaded with eligible attendees to hold on to their TRUMP coins. They feared that auctioning them off would introduce price instability into the newly created market. The organizers went so far as to call the dinner “very special and rare,” underlining its unique and sought-after quality.
Nathan van der Heyden, an analyst in the cryptocurrency space, commented on the evolving perception of the TRUMP coin, stating, “Before, you were speculating on a TRUMP coin with no utility. Now you’re speculating on future access to Trump. That has to be worth a bit more money.” He boldly claimed that the market will expect further advantages from possessing that currency. Despite these challenges, potential future benefits may shore up or increase its value.
Given these trends, the trading behavior of TRUMP coin holders suggests they are not terribly confident in its real-world potential. As the market reorients from the hype of the dinner event, it… Analysts are eagerly awaiting to see how these developments affect TRUMP coin’s price and the mood of its holders.
The TRUMP dinner gala provided TRUMP coin holders with a unique opportunity to engage directly with Donald Trump. This personal contact likely prompted some to choose to divest parts of their collections. Traders are still actively reacting to more immediate events and continuing to build expectations of greater future utility. The dynamics around this unique cryptocurrency continue to change accordingly.
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