A recent analysis by the Financial Times has revealed that former President Donald Trump’s cryptocurrency initiative has amassed at least $350 million in revenue following the launch of the Official Trump (TRUMP) memecoin.
Massive Earnings from TRUMP Memecoin
According to the Financial Times report published on March 7, entities managing the TRUMP memecoin have earned a substantial $314 million from token sales and an additional $36 million from transaction fees on the Solana blockchain.
While Trump’s personal financial gains from the memecoin remain undisclosed, the official website, Gettrumpmemes.com, states that The Trump Organization-affiliated CIC Digital and Delaware-based Fight Fight Fight collectively hold 80% of the total TRUMP token supply.
The Financial Times derived these earnings by meticulously tracking the movement of TRUMP tokens from their initial creation to official wallets and then analyzing their subsequent sales on Solana-based trading platforms.
Total Supply of Trump Memecoins
The TRUMP memecoin was launched just days before Trump’s anticipated return to the White House on January 20.
As part of the launch, 1 billion TRUMP tokens were minted. The first 200 million tokens were made available in the initial batch, while the remaining 800 million are scheduled for release over the next three years.
The Financial Times report further indicated that 158 million TRUMP tokens were deposited into a liquidity pool. This pool enabled traders to purchase the tokens on the open market using Circle’s USDC (USDC) stablecoin, providing liquidity and market accessibility for investors.
Price Manipulation Allegations and Market Moves
An analysis conducted by the Financial Times suggested potential price manipulation in the trading of TRUMP memecoins.
On the day following the launch, Trump-linked wallets offloaded 100 million TRUMP tokens at a price below $1.05. The report also highlighted that, after withdrawing initial USDC profits, Trump-affiliated wallets reinvested $291 million worth of USDC into another liquidity pool, seemingly to maintain market stability.
Further findings revealed that liquidity pools sent approximately 14.7 million TRUMP tokens to major cryptocurrency exchanges, including Binance, Bybit, and Coinbase. Additionally, Trump-linked accounts reportedly purchased $1 million worth of TRUMP tokens at $33.2 on January 19 and 20, likely in an attempt to stabilize prices following the launch of Melania Trump’s MEMELANIA memecoin.
Since reaching its peak price of $75 on January 19, the TRUMP memecoin has plunged by 82%. However, despite this dramatic decline, the 831 million TRUMP tokens still held by Trump-affiliated wallets are estimated to have a notional value of $10.8 billion, according to the report.
Potential Regulatory Scrutiny on Presidential Memecoins
The TRUMP memecoin has sparked widespread debate in the cryptocurrency industry, particularly due to its influence in triggering approximately 700 copycat projects and its possible connection to the Libra token scandal, which was linked to Argentine President Javier Milei.
U.S. lawmakers have also raised concerns about the legitimacy of presidential memecoins. In late February, House Democrat Representative Sam Liccardo publicly criticized the concept, proposing legislation to prohibit public officials and their families from engaging in such activities.
Further regulatory action followed on March 5, when Assemblymember Clyde Vanel introduced a bill aimed at establishing criminal penalties for memecoin rug pulls. The legislation seeks to protect investors from fraudulent schemes in the evolving cryptocurrency landscape.
Despite growing regulatory concerns, financial watchdogs, including the Securities and Exchange Commission (SEC), have reiterated that memecoins do not currently fall under securities laws. Instead, the regulation of such digital assets is being directed toward other governing authorities.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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