Controversy Erupts Over Trump Dinner: The Truth Behind the Big Pump of TRUMP Token

The "TRUMP DINNER" hosted by Trump will take place on May 22 in Washington. The event will invite the top 220 TRUMP token holders to participate, with the top 25 enjoying a private VIP reception with Trump and a special VIP tour of the White House the following day. Trump will attend the dinner as a guest and will not be fundraising.

This news reminds people of the recent $300 million TRUMP unlocking event: On April 18, TRUMP unlocked 40 million Tokens, worth about $300 million, accounting for 20% of the circulation. Just after the unlocking, it was announced to "entertain" the top big brothers. Is this a "thank you" banquet or a "Huangmen banquet" to "invite you into the pit"?

After the dinner news was announced, the price of TRUMP skyrocketed, reaching a high of $14.37. As of the time of writing, TRUMP is reported at $12.37, with an increase of over 33%.

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Whale Movements Attract Attention

After the dinner news was released, an investor spent 5 million USDC to purchase 407,467 TRUMP at a price of $12.27. Subsequently, the investor sold all TRUMP for a total price of $5.73 million in less than half an hour, making a profit of $731,800.

Another long-term TRUMP liquidity provider removed liquidity from two wallets just after 8 AM this morning, receiving 211,977 TRUMP (2.76 million USD) and 18,376 SOL (2.76 million USD). These two wallets are now among the top 220 holders, with a chance to receive dinner invitations. The investor bought 332,424 TRUMP (802,000 USD) at a price of 2.41 USD on the day of listing and added liquidity. At the price peak, these tokens were worth over 24 million USD.

However, not all investors are so lucky. According to analysis, a TRUMP Token investor liquidated their position about 20 hours before the good news was released, earning only $483,000. Had they held their position until after the news was released, their theoretical profit could have reached $4.28 million.

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Can TRUMP make a comeback?

In terms of long-term performance, TRUMP has been disappointing. After soaring to over $75 on its debut day, its rise quickly fell back as investors noticed the high concentration of tokens and the short exercise period. After its launch on January 17, the market cap briefly reached around $15 billion, but by January 20 it plummeted by more than 50%. Considering that 80% of the supply was allocated to founders and entities controlled by Trump, the current market cap of $2.6 billion is hard to justify.

Although Trump's actions have boosted short-term trading volume, it is difficult for the price of coins to change significantly merely due to a dinner. The current big pump is the result of market speculation and Trump’s "selling sentiment". In the long run, unless TRUMP can alleviate investors' concerns about token unlocking, it will be hard to reverse its prolonged stagnant trend.

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Trump's NFT Plan

The official terms state: Trump may be absent from the dinner, and if the event is canceled or he fails to attend, eligible TRUMP holders will receive a limited edition NFT as a substitute.

This means that Trump's dinner will not only affect the TRUMP Token, but may also bring attention back to the Trump-themed NFTs.

Trump attempted to "Make NFTs Great Again" long before his second campaign. On May 8, 2024, he hosted an NFT dinner in Florida, inviting buyers who purchased at least 47 "MugShot Edition" NFTs to attend. The series consists of 100,000 NFTs, each priced at $99, and purchasing 47 (for $4,653) grants the opportunity to dine with Trump.

Trump's NFT issuance can be traced back to December 2022, when 45,000 cards were issued, featuring him as a superhero, astronaut, and other personas. These NFTs were minted on Polygon, with the standard version cards priced at $99. Purchasing 45 cards would grant access to an NFT dinner ticket. All NFTs sold out within 12 hours. In March 2023, when Trump was indicted, NFT prices experienced a big pump, reaching a peak price of nearly $1,700.

In April 2023, the Trump team launched the second series of digital trading cards, maintaining a price of $99, which sold out within 5 hours, generating $4.6 million in revenue.

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Conclusion

Although it is unclear how much profit this NFT event can bring to Trump, it is evident that he is simultaneously operating the TRU Token and NFT projects. Whether TRU and NFT can continue to be "great," the big pump in the short term and the exposure seem to have achieved the expected results.

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