Significant Sales by VIP Investors

Recent activity surrounding the TRUMP cryptocurrency has drawn attention, particularly following the substantial sales by two key investors known as Top and ivo. Top capitalized on 200,000 coins valued around $2.7 million, while ivo sold 427,568 coins worth nearly $5.7 million, both transactions occurring ahead of a critical deadline.

Launch and Speculative Nature

Former President Trump introduced his crypto coin on January 17, shortly before his anticipated 2025 inauguration. Marketed as a memecoin, this type of cryptocurrency typically caters to financial speculation rather than providing steady revenue, resulting in significant price volatility influenced by public sentiment.

Initial Surge and Subsequent Decline

Following the coin’s release, the initial 20% circulation experienced a valuation spike, skyrocketing to $14 billion. This surge momentarily boosted Trump’s net worth by billions. However, the value has since plummeted more than 80% from its peak. Notably, the announcement of a gala dinner on April 23 sparked renewed trading activity, resulting in another price increase, potentially yielding substantial trading fees for market intermediaries such as Fight Fight Fight and CIC Digital.

Ethical Concerns and Political Ramifications

Critics have labeled the TRUMP memecoin as an unethical monetization of Trump’s political clout, raising alarms about its potential for facilitating undisclosed wealth transfers to his family. There are concerns that foreign entities could leverage large investments in the coin to influence Trump politically.

Senator Jon Ossoff articulated these concerns during a town hall meeting on April 25, pointing out the implications of creating a direct financial incentive for access to the former president: “He is granting audiences to people who buy the memecoin that directly enriches him.”

The Identity of Investors

The identities of many gala dinner attendees who acquired significant coin holdings remain largely undisclosed. Noteworthy usernames in the investor community include Woo, REKT, GAnt, and CASE. Although the White House and event organizers have not confirmed whether these names will be made public, some investors have publicly announced their participation, leveraging the opportunity for personal branding.

One prominent figure, MeCo (or “MemeCore”), actively encouraged users on social media to send TRUMP coins to their wallet to climb the ranks, promising refunds after the contest. Rudy Rong, a key figure at MemeCore and from a wealthy Chinese family, also expressed excitement about attending Trump’s gala.

Legislative Responses

In Congress, Democratic lawmakers are advocating for the MEME Act, which aims to prohibit elected officials from launching their own memecoins. This legislation seeks to mitigate risks associated with potential bribery and foreign influence. While the act is unlikely to pass given the Republican majority and Trump’s party loyalty, it reflects rising concerns regarding the intersection of cryptocurrency and politics.

Congressman Sam Liccardo, who introduced the MEME Act, stated, “It provides a cloak for payments from bad actors to elected officials and their family. The point is that those who are benefiting may include individuals who do not have America’s best interests at heart.”