K33 Research notes Trump memecoin’s ‘horrendous’ tokenomics but no supply issues

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Despite widespread disapproval of its tokenomics and a decline from its peak $14.5 billion market cap, the Official Trump (TRUMP) memecoin has experienced a 12% increase in the past day, trading above $42.

In the meantime, Melania Meme (MELANIA), a memecoin that is linked to the First Lady, momentarily achieved a $2 billion market valuation. However, it has since lost momentum, experiencing a decline of over 9% in the past 24 hours.

According to The Block’s Price Page, the official Trump memecoin has experienced a 12% increase in the past 24 hours, surpassing the $42 threshold. Despite criticism of its “deficient tokenomics,” analysts suggest that investors do not need to be concerned about a supply disruption for the next three months.

Launched less than 72 hours prior to his inauguration, the official Trump memecoin experienced an immediate surge in value, reaching a market capitalization of $14.5 billion. However, it has since declined to its current value of $8.4 billion. K33 Research DeFi analyst David Zimmerman stated in a report on Wednesday that “Official Trump tokenomics are subpar, but with no activation for 3 months, there is a reasonable span without concern of new supply.”

At present, 20% of the Official Trump supply is in circulation. The public was offered half of the circulating supply, while the other half was allocated for liquidity. The remaining 80% is currently restricted and will be released progressively over the course of 36 months. Six entities, designated as “Creators and CIC Digital 1-6,” are recipients of these secured tokens.

Following an initial unlock precipice of 10% or 25%, each group will experience daily unlocks for a period of two years, following a lock-up period that spans from three to twelve months. 3 months from now, the initial activation will impact the “Creators” and “CIC Digital 1.”

As the market increasingly prioritizes projects with entirely circulating supply at launch, Zimmerman observed that such tokenomic structures are obsolete for memecoins. “There is no way to sugarcoat this—these tokenomics are appalling for a memecoin,” he concluded.

The Donald J. Trump Revocable Trust is the owner of two firms, CIC Digital and CIC Ventures, according to the K33 Research report. Trump has an established licensing agreement with these firms. Zimmerman stated that Trump will have a substantial financial stake in the memecoin through CIC Digital, although the identity of the “Creators” is not entirely obvious.

The U.S. First Lady, Melania Meme (MELANIA), launched her own memecoin on Sunday, capitalizing on the momentum of Official Trump. Melania Meme experienced a 250-fold increase in value within 12 hours, resulting in a market capitalization of more than $2 billion. The tokenomics, which are comparable to Official Trump, include considerable allocations for the “team,” “treasury,” and “community.”

Nevertheless, Melania Meme provides a more aggressive unlock schedule, which includes an initial lock-up of only 30 days, followed by a 10% team unlock and linear vesting over a 12-month period.

The Melania Meme has experienced a decline of over 9% in the past 24 hours and is currently priced at $4.00, as indicated by The Block’s Page Price.

Also Read: Brian Armstrong Expects Major US Stablecoin Policy Changes

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