United States President Donald Trump has signaled support for the idea that his official memecoin reflects public sentiment about his leadership.
In a post on his social media platform Truth Social, Trump shared a Newsmax article discussing how his official cryptocurrency token serves as a gauge of political momentum, echoing views shared by some crypto industry figures.
While the president may recognize his memecoin as a success barometer, the token’s market performance paints a more sobering picture if it’s to be used as a sentiment gauge.
At the time of writing, his Official Trump (TRUMP) memecoin traded at around $10, down 85% since its all-time high of $73 in January. A scheduled $520 million token unlock in July could apply further downward pressure.
Trump token set for $520 million unlock
According to onchain data compiled by Tokenomist (formerly Token Unlocks), only 26.48% of the TRUMP token’s total supply has been unlocked, with 73.52% — about 735 million tokens — yet to enter circulation.
On July 18, TRUMP tokens amounting to 25% of the current circulating supply will hit the market. Tokenomist data shows that 50 million tokens valued at over $520 million will be unlocked.
A large number of tokens hitting the market has the potential to put further downward pressure on the token’s price, especially if the demand doesn’t scale in parallel.
In the lead-up to the unlock, on June 7, Trump’s son Eric Trump attempted to bolster market confidence using the Trump-backed crypto company World Liberty Financial, announcing that WLF plans to acquire a “substantial amount” of the memecoin tokens.
The token’s price didn’t react significantly, leading commentators to say it was “not a good sign.”
Ultimately, whether investors absorb the upcoming unlock or react with a market sell-off could indicate broader political enthusiasm toward Trump’s leadership.
Memecoins as a public sentiment measurement tool
Using memecoins as a tool to measure public sentiment isn’t new. Animoca Brands co-founder Yat Siu previously told Cointelegraph that the TRUMP token’s rapid rise was due to hype and novelty.
However, the executive said that in the long term, it could reflect broader attitudes toward Trump’s presidency.
Quick Summary of the News
- Donald Trump acknowledged his memecoin, TRUMP, as a potential gauge of public sentiment.
- The TRUMP token is currently trading at $10, down 85% from its all-time high.
- A $520 million token unlock is scheduled for July 18.
- Eric Trump’s attempt to boost confidence via World Liberty Financial had little impact.
- Analysts are watching to see if the unlock leads to a sell-off, reflecting broader political sentiment.
Why It Matters
The intersection of politics and cryptocurrency is becoming increasingly relevant. Trump’s explicit acknowledgment of his memecoin’s potential as a sentiment indicator highlights this trend. However, the upcoming token unlock presents a significant risk. Large unlocks can flood the market, potentially driving down prices if demand doesn’t keep pace. This situation is further complicated by the inherent volatility of memecoins and the speculative nature of the crypto market.
Market Impact
The following table illustrates the current situation of the TRUMP token:
| Metric | Value |
|---|---|
| Current Price | ~$10 |
| All-Time High | $73 (January) |
| Decline from ATH | 85% |
| Unlock Date | July 18 |
| Value of Unlock | $520 Million |
| Percentage of Circulating Supply Unlocked | 25% |
Expert Take or Personal Insight
While Trump’s acknowledgement of the memecoin is interesting, relying solely on it as a sentiment gauge is highly risky. Memecoins are driven by hype and speculation more than fundamental value. The $520 million unlock is a major red flag. Eric Trump’s failed attempt to rally the market suggests a lack of strong underlying support. It’s more likely that the unlock will exert significant downward pressure, regardless of true political sentiment.
Actionable Insight
Traders and investors should closely monitor the TRUMP token in the lead-up to the July 18 unlock. Watch for any significant price movements or announcements that could indicate how the market will react. Consider setting stop-loss orders to mitigate potential losses. If you’re not already holding TRUMP, it’s wise to avoid entering a position until after the unlock and the market stabilizes. Also, remember that memecoin investments should only represent a small, speculative portion of your overall portfolio.
Conclusion
The TRUMP memecoin situation is a fascinating case study of the intersection between politics and crypto. While the token may offer some insight into public sentiment, the upcoming unlock poses a significant risk. Prudent investors should exercise caution and closely monitor the situation before making any decisions.