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Attention: There may be price turbulence in this altcoin! There is very little left, a large amount of tokens will be released!
The cryptocurrency community is bracing for turmoil due to a massive token lockdown on Donald Trump's memecoin, raising concerns of price volatility for the once-hugely popular TRUMP.
The memecoin, which was launched just before Trump's second presidential inauguration, stunned the market in January with a surprise debut that briefly catapulted its market cap to $14 billion. However, there was a rapid sell-off that wiped out about 90% of its value as early investors rushed to make a profit.
Now, the planned launch of 40 million new tokens allocated to groups closely linked to the president, including CIC Digital LLC and Fight Fight Fight LLC, is fueling fears of further downward pressure. According to the project's website, these groups collectively control about 80% of the token supply to be unlocked.
The upcoming launch adds to the 200 million tokens already in existence since Jan. 17, with the total circulating supply projected to grow to 1 billion within three years.
"There are sometimes dumps after tokens are unlocked," said Dylan Bane, an institutional research analyst at Messari, adding: "Teams are less likely to do it all at once, more likely to do it over time. However, we do not know what their intentions are. Obviously, they don't want negative pressure."
"Unlocking may be less important in the short term if they are working with the appropriate market makers," said Edward Chin, co-founder of Parataxis Capital, adding: "But in the long run, additional supply will put pressure on price movements, either lowering the price or limiting further upside, even if demand increases."
The unlocking of TRUMP tokens will take place on April 18 at 09:00 (UTC+3) Turkish time.