President Donald Trump’s push to promote his meme coin, Official Trump (TRUMP), on social media has resulted in several traders incurring losses despite the token briefly rallying in response.
On March 23, Trump took to Truth Social with the post, “I LOVE $TRUMP,” which triggered an immediate short-term rally. The token surged as much as 13% before slightly pulling back.
Consequently, a cryptocurrency whale, who previously made $108 million in profits from trading TRUMP, suffered a $207,000 loss within a single hour after the post, according to data retrieved by Finbold from on-chain cryptocurrency analysis platform Lookonchain on March 24.
Picks for you
The trade’s details indicate that the investor spent $5 million USDC to buy TRUMP tokens right after the President’s post and sold them an hour later at a $207,000 loss.
Ironically, this is the same trader who once bought 5.97 million TRUMP for $1.09 million USDC and walked away with a $108 million profit during the token’s initial surge.
Trump’s meme coin controversy
Notably, transactions like these have raised concerns about potential insider trading involving the meme coin and other tokens linked to the Trump family, such as one associated with First Lady Melania (MELANIA).
Trump’s latest effort to promote the token has reignited debate over his influence in the meme coin market, especially given their lack of real utility. His recent post has also fueled speculation about potential market manipulation.
Interestingly, his involvement in meme coins has even drawn legislative scrutiny. Representative Sam Liccardo is now pushing the MEME Act, a bill aimed at preventing federal officials and their families from profiting off these digital assets.
TRUMP price analysis
Despite the unidentified whale missing out on profits, TRUMP is among the best-performing cryptocurrencies in the short term, even as the broader market remains suppressed.
As of press time, Official Trump was trading at $11.95, gaining over 9% in the last 24 hours, while on the weekly chart, it was up 5%. However, TRUMP has experienced a more than 70% drop from its record high amid massive price swings.
Launched ahead of Trump’s inauguration, the TRUMP token runs on Solana and has a total supply of 1 billion.
An initial 200 million tokens were released to the public, while CIC Digital LLC and Fight Fight Fight LLC hold the remaining 800 million. The token is subject to a three-year phased release, starting with three to 12-month lock-ups, followed by daily unlocks over 24 months.
In its early days, TRUMP skyrocketed from under $10 to $75, reaching a $15 billion market cap with $29 billion in trading volume.
Featured image via Shutterstock
