The memecoin endorsed by President Trump experienced a significant increase in value on Wednesday following a promise by the token’s founders that top holders would be given the opportunity to dine with America’s first “crypto president.”
The value of Trump’s memecoin, named $Trump, surged by 58% in just one hour to $14.70 on Wednesday. This happened after the token’s official website revealed that the top 220 holders would be invited to meet President Trump at his golf club near Washington, DC, on May 22. This “intimate private dinner” is set to include a speech from Trump on the future of cryptocurrency. Additionally, the top 25 holders will receive invitations to a “VIP reception” and a tour of the White House.
The guest list for this “black-tie optional” event will be based on a leaderboard, tracking investors’ average holdings of $Trump between April 23 and May 12. The current top holder possesses 400,005 tokens, valued at $5.2 million at the current price of $13.01.
“The competition is fierce,” states the website, encouraging users to let the President know how many $Trump coins they own.
Late last week, a planned release of 40 million additional $Trump tokens was announced for the memecoin’s creators and CIC Digital, a company associated with Trump, as part of a “token unlock.” Such token unlocks often lead to a reduction in token value due to increased supply and subsequent sell-offs by holders seeking profit.
Despite concerns that Trump’s team might sell off tokens over the weekend, no large-scale sales were recorded, according to blockchain data firm Chainalysis. This led to increased investor confidence in the token’s longevity and a 10% increase in its value. The memecoin account announced on X that the tokens, scheduled for release last week, would remain locked for an additional 90 days.
Trump-affiliated companies are anticipated to hold 80% of the token’s supply by 2028. Given that $Trump’s value has dropped by 90% since its initial launch, the dinner could be an attempt to boost the token’s value, benefiting holders in any forthcoming sales, according to Dylan Bane, an analyst at research firm Messari. “Given the token’s significant drop since launch, they likely want to avoid setting a precedent of aggressive sell-offs, especially with the majority of tokens still locked for the next 24 months,” Bane remarked.
The dinner also presents a conflict of interest stemming from a presidential memecoin. During Trump’s first presidency, ethics organizations criticized the use of the president’s various hotels by individuals dealing with government matters. This time, Trump’s involvement in crypto enterprises, such as his memecoin and the DeFi company World Liberty Financial, offers a more straightforward and anonymous method for potentially influencing the president.
The legality of Trump’s involvement with this memecoin remains uncertain. “There isn’t a lot of precedent for the president to be the owner of a publicly traded asset, especially a meme asset,” noted Jordan Libowitz, vice president at Citizens for Responsibility and Ethics in Washington.
Nonetheless, the White House refutes the notion that the memecoin presents an ethical dilemma. “President Trump’s assets are in a trust managed by his children,” stated Anna Kelly, the White House’s deputy press secretary. “There are no conflicts of interest.”
