- Members of the TRUMP meme coin team, initiated by President Trump prior to his inauguration, are set to receive token unlocks valued at $321.6 million next week.
- TRUMP unlocks constitute more than 60% of next week’s total insider unlocks, which amount to $519 million.
- Fast Token and Arbitrum team members are also slated to receive unlocks totaling $80.6 million and $27.2 million, respectively.
The official TRUMP (TRUMP) token, introduced by President Trump, is prepared to release over $320 million worth of tokens to its team members next week, despite the prevailing risk-averse climate in the cryptocurrency market.
Upcoming TRUMP unlock may exacerbate its downturn
The TRUMP meme coin team will benefit from $321.6 million in unlocked tokens next week, based on information from Tokenomist.
Token unlocks often trigger price declines if the additional supply enters the open market. The pessimistic outlook surrounding unlocks might induce selling pressure, as investors often anticipate the new supply becoming available.
This unlock could add further strain on TRUMP holders, who have already faced substantial losses over recent months amid a prevalent risk-off sentiment in the cryptocurrency landscape.
President Trump revealed the launch of TRUMP in a post on Truth Social just two days before his inauguration on January 18. After reaching an all-time high of $73.43 on January 19, TRUMP has seen a decline of 89%, currently trading around $8.05, according to CoinGecko data.
TRUMP/USD daily chart
The forthcoming unlock, equating to 40 million TRUMP, will raise the meme coin’s circulating supply to roughly 240 million TRUMP, still significantly below its total cap of 1 billion TRUMP. Thus, the token may face additional downward pressure, particularly if more unlocks occur under these market conditions.
The decline of TRUMP reflects the broader downturn in the meme coin sector, which has seen its market capitalization shrink from $127.26 billion in December to $45.64 billion as of Friday, based on CoinMarketCap information.
While the TRUMP unlock represents over 60% of the $519 million in insider unlocks next week, team members from Fast Token (FTN) and Arbitrum (ARB) will also receive newly unlocked supplies valued at $80.6 million and $27.2 million, respectively.