Trump’s dinner plan ignites TRU token price, is it a sincere invitation or is there another motive?

THE NEWS THAT TRUMP’S “TRUMP DINNER” WILL BE HELD IN WASHINGTON ON MAY 22 HAS SENT WAVES THROUGH THE MARKET. The event plans to invite the first 220 TRUMP token holders to attend, with the top 25 holders enjoying a private VIP reception with Trump and a visit to the White House the following day. According to the news, Trump will be a guest at the scene in person, and the event will not involve any fundraising.

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This arrangement coincided shortly after April 18 when TRUMP unlocked 40 million Tokens (worth about $300 million, accounting for 20% of the circulation), sparking market speculation: is this a “thanksgiving feast” for loyal supporters, or is it a “feast at Hongmen” with ulterior motives?

After the announcement of the dinner news, the price of the TRUMP Token surged, reaching a high of $14.37. As of the report, it is quoted at $12.37, an increase of over 33%.

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Market whales act swiftly

According to blockchain monitoring data, after the news of the dinner was released, an investor immediately spent 5 million USDC to buy 407,467 TRUMP at a price of $12.27. Subsequently, the investor sold it all in less than half an hour, making a profit of about $731,800.

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Another long-term TRUMP liquidity provider withdrew liquidity through two wallets that morning, recovering $2.76 million worth of 211,977 TRUMP and 18,376 SOL. Both wallets are currently in the top 220 holders and are therefore eligible for invitations to the dinner. The investor initially bought 332,424 TRUM at an average price of $2.41 (about $802,000), and at the peak of the token’s price, these positions were worth more than $24 million.

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However, not all investors are so lucky. A blockchain analyst pointed out that a TRUMP token investor cleared his position about 20 hours before the release of the good news and only made a profit of $483,000. If the investor is able to hold until the news is released before selling, he could theoretically make a profit of up to $4.28 million.

Can TRUMP Token Turn the Tide?

In terms of long-term performance, the TRUMP token has disappointed the market. Although it surged above $75 on the first day of issuance, the gains quickly dissipated as investors noticed the high concentration of the token and the short exercise period. The token’s market capitalization reached about $15 billion after its launch on January 17, but by January 20 it had plummeted by more than 50%. Considering that 80% of the supply is allocated to Trump-controlled founders and entities, the current market capitalization of $2.6 billion is hardly justified.

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Although this dinner event boosted short-term trading volume, it is difficult to change the fundamentals of the TRUMP Token in the long run with just one event. The current short-term surge is more a result of market speculation combined with Trump’s “sentiment marketing.” Unless TRUMP can effectively address investors’ concerns about large-scale token unlocks, it will be difficult to reverse the long-term sluggish market trend.

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Comprehensive Layout from Meme Coin to NFT

It is worth noting that according to the official terms of TRUMP, if Trump is absent from the dinner or the event is canceled, eligible TRUMP holders will receive a limited edition NFT as compensation. This arrangement not only relates to TRUMP Meme coin but will also bring new attention to Trump-themed NFTs.

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In fact, Trump has long been involved in the NFT space. On May 8 of this year, Trump held an NFT dinner at his Mar-a-Lago resort in Palm Beach, Florida, inviting buyers who purchased at least 47 “MugShot Edition” ( mugshot ) NFTs to attend. The series consists of 100,000 NFTs, priced at $99 each, and purchasing 47 of them for (4653 dollars ) would grant the opportunity to dine with Trump. At the time, Trump publicly expressed support for cryptocurrencies and promised to change the United States’ policy stance on digital assets.

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Going back even further, Trump debuted NFTs in December 2022 with the launch of 45,000 digital cards priced at $99 each, showcasing his image as a superhero, astronaut, and other characters. Customers who purchase 45 cards will receive NFT dinner tickets. The collection sold out in about 12 hours. In April 2023, the Trump team launched the second series of Trump digital trading cards, which were sold out in just five hours at the same price, earning about $4.6 million.

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Ultimate Strategy?

Trump seems to be running two product lines, TRUMP Meme and NFT, at the same time. Whether these digital assets can continue to increase in value is not the most critical, for him, the short-term market heat and exposure have achieved the goal. The current distribution of TRUMP token holdings shows that the top 30 holders still control a significant proportion of the token supply, and the market concentration is high.

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This model that combines digital assets with offline activities not only boosts the Token price but also expands Trump’s influence in the crypto space. However, for investors, it is important to remain vigilant about potential risks in a highly volatile market environment, especially under a large-scale unlocking and highly concentrated Token holding structure.

AI Thinking: This model of combining political influence with digital assets does set a precedent, but from an investment perspective, there are obvious risks associated with tokens that are highly dependent on personal influence, especially when a large number of tokens are in the hands of a core team. Short-term hot spots may struggle to support long-term value.