Donald Trump’s Memecoin Generates $350 Million for Creators

In a stunning revelation, President Donald Trump’s cryptocurrency venture has reportedly amassed a staggering $350 million in revenue following the launch of the Official Trump (TRUMP) memecoin. This analysis, conducted by the Financial Times, highlights the significant financial impact of the TRUMP memecoin on its creators and the broader crypto market.

Revenue Breakdown of the TRUMP Memecoin

Entities involved in the operation of the TRUMP memecoin have reportedly earned approximately $314 million from token sales, alongside an additional $36 million generated from transaction fees on the Solana blockchain, as detailed in the Financial Times report dated March 7. While the exact profits for Trump himself remain ambiguous, the memecoin’s official website, Gettrumpmemes.com, indicates that The Trump Organization-affiliated CIC Digital and Delaware-based Fight Fight Fight collectively own 80% of the tokens.

Token Minting and Market Activity

The launch of the TRUMP memecoin involved the minting of 1 billion tokens, with an initial batch of 200 million released. The remaining 800 million tokens are scheduled to be distributed over the next three years. According to the Financial Times, 158 million tokens were allocated to a liquidity pool, enabling traders to purchase the memecoins on the open market using Circle’s USDC stablecoin.

Interestingly, the Trump-linked accounts sold the first 100 million TRUMP tokens just a day after the memecoin’s launch, at a price below $1.05. Following this, the analysis suggests that after withdrawing the initial USDC earnings from the sale, Trump wallets reinvested $291 million in USDC back into another liquidity pool, seemingly to bolster market stability.

Market Stability Efforts and Price Fluctuations

The Financial Times report further indicates that the scheme likely generated additional revenue through various transactions. The liquidity pools also facilitated the transfer of approximately 14.7 million TRUMP tokens to ten exchanges, including major platforms like Binance, Bybit, and Coinbase. Notably, Trump-affiliated accounts reportedly spent $1 million to purchase their own tokens at a price of $33.2 on January 19 and 20, aiming to stabilize the price amid a decline following the launch.

Since its peak of $75 on January 19, the price of TRUMP has experienced a dramatic drop of 82%. Despite this decline, the 831 million TRUMP tokens still held by Trump-affiliated accounts are estimated to possess a notional value of $10.8 billion, according to the Financial Times analysis.

Controversy and Regulatory Scrutiny

The emergence of the TRUMP memecoin has ignited considerable discussion within the crypto community, particularly due to its potential scandalous implications, as highlighted by Argentine President Javier Milei. House Democrat Representative Sam Liccardo has openly criticized the concept of presidential memecoins, proposing draft legislation to prohibit such activities in late February.

As the situation unfolds, financial regulators, including the Securities and Exchange Commission (SEC), have reiterated their focus on regulating the cryptocurrency market, directing their oversight efforts toward various authorities. The TRUMP memecoin continues to be a focal point of interest and debate, reflecting the intersection of politics and cryptocurrency.

Conclusion

In summary, Donald Trump’s memecoin has not only generated significant revenue for its creators but has also sparked a broader conversation about the implications of political figures engaging in cryptocurrency ventures. As the market evolves, the future of the TRUMP memecoin and its impact on the crypto landscape remains to be seen.