On Wednesday, the value of a memecoin endorsed by former President Trump dramatically increased after its founders announced a special incentive for top token holders. The price of the $TRUMP token surged by 58% within an hour, reaching $14.70, following an announcement on the token’s website. The top 220 holders of the token would be invited to have dinner with Trump at his golf club near Washington, D.C., on May 22, where he is expected to deliver a speech about the future of cryptocurrency. Additionally, the top 25 holders will have the opportunity to attend a VIP reception and receive a tour of the White House.
A leaderboard on the website will track the average $TRUMP holdings of investors from April 23 through May 12 to determine the guest list for the “black-tie optional” event. The current leading holder possesses 400,005 tokens, valued at $5.2 million at the current price of $13.01. “The competition is fierce,” the website states, encouraging participants to showcase their $TRUMP coin ownership.
Recently, 40 million additional $TRUMP tokens were scheduled for release to the memecoin’s creators and CIC Digital, a company linked to Trump, in a move known as a token unlock. Such events can sometimes decrease the token’s value due to increased supply, leading to sell-offs by insiders. However, contrary to concerns, no large-scale sales occurred over the weekend, according to blockchain data firm Chainalysis. This absence of sell-offs boosted investor confidence in the token’s sustainability, resulting in a 10% increase in its value. Furthermore, it was announced on Wednesday via the Trump memecoin account on X that the scheduled tokens would remain locked for an additional 90 days.
By 2028, companies associated with Trump are anticipated to hold 80% of the token’s supply. Dylan Bane, an analyst at the research firm Messari, suggested that the dinner might be an effort to support the token’s value and ensure maximum returns for future sales, given the token has lost 90% of its value since its launch. He emphasized the importance of avoiding aggressive selloffs, especially with most tokens remaining locked for the next 24 months.
The dinner event also underscores a potential conflict of interest stemming from a presidential memecoin. Critics have previously expressed concerns over Trump’s hotel businesses being used by individuals with interests before the government during his first presidency. Trump’s ventures into cryptocurrency, such as the memecoin and DeFi company World Liberty Financial, could offer more discreet means of exerting influence on the president. The ethical implications of Trump owning a publicly traded asset, particularly a meme asset, have been questioned by Jordan Libowitz of the Citizens for Responsibility and Ethics in Washington.
Nevertheless, the White House has denied any ethical issues related to the memecoin. Anna Kelly, the White House’s deputy press secretary, stated that Trump’s assets are managed by a trust overseen by his children, asserting that no conflicts of interest exist. This article was initially published on Fortune.com.
