Donald Trump’s meme coin on the Solana blockchain is nearing its initial token unlock.
The project’s team is slated to receive approximately 40 million TRUMP tokens next Friday.
The Solana-based meme coin, associated with former U.S. President Donald Trump, is quickly approaching its first token unlock event.
The team behind the Official Trump (TRUMP) token is set to receive roughly 40 million TRUMP next Friday.
Tokenomist, a crypto analytics platform, indicates that approximately $320 million worth of TRUMP tokens will enter the market on April 18, based on TRUMP’s current valuation.
Afterward, the project will unlock approximately $4 million in TRUMP tokens every day until its subsequent unlock event in July.
The $320 Million Token Release on April 18th
The primary question is how this initial unlock will affect the price of this cryptocurrency linked to the former president.
Analyst Predicts Potential Price Drop Post-Unlock
According to Sidney Powell, co-founder and CEO of DeFi lender Maple Finance, the 20% increase in TRUMP’s circulating supply is likely to increase selling pressure.
In a Friday statement to Decrypt, Powell stated that token unlocks typically exert downward pressure on prices.
He explained that these unlocks reduce an asset’s scarcity, and therefore increased demand is necessary to maintain current price levels.
36-Month Unlock Schedule and Gradual Supply Increase
Powell suggested that while the scale of TRUMP’s forthcoming unlock is not exceptional, the meme coin’s value might decrease.
Investors’ processing of Trump’s 36-month token unlock plan is responsible for this potential drop.
This plan will incrementally expand TRUMP’s circulating supply from an initial 200 million tokens at launch to a total of 1 billion TRUMP tokens.
Gradual Release Less Alarming Than Sudden Influx
Powell commented that “a sharper, more concentrated unlock would generate greater concern” when contrasting gradual versus immediate unlocks.
He added, “However, it’s expected that token unlocks will lead to increased selling activity.”
Unconventional Investor Base Might Moderate Price Action
However, the investor base of this presidential meme coin is distinctive.
Chainalysis, a blockchain analytics firm, reported in January that TRUMP initially drew in many individuals new to cryptocurrency.
Data revealed that numerous wallets purchased TRUMP as their first altcoin on Solana.
Within the crypto industry, many perceived the launch as a significant event for bringing mainstream users into the cryptocurrency market.
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