TLDR
TRUMP AI (TRUMP) fell 99.58% in 24h, continuing a steep 7-day (-98.78%) and 30-day (-87.46%) downtrend. Key drivers:
- Supply shock – 600B total tokens, with 73.5% unlocked in July, flooding the market.
- Team sell-offs – Founders dumped $35M+ of tokens, mirroring MELANIA coin’s 98.4% crash.
- Failed ETF catalyst – Canary Capital’s TRUMP ETF filing (Aug 13) briefly lifted prices 10%, but sell pressure resumed.
Deep Dive
1. Massive Token Unlocks (Bearish Impact)
Overview: On July 18, 73.5% of TRUMP’s total supply (735M tokens worth ~$520M at the time) entered circulation (Tokenomist). This diluted holdings and overwhelmed buy-side liquidity.
What this means:
- Token unlocks typically trigger sell-offs as early investors/teams cash out. TRUMP’s 24h volume ($4.5M) is dwarfed by the unlocked supply.
- The project’s self-reported circulating supply (600B tokens) suggests extreme inflation, driving the price to $0.00000752.
What to look out for: Remaining locked tokens (26.5%) could prolong sell pressure if released.
2. Insider Dumping (Bearish Impact)
Overview: On-chain data reveals TRUMP’s team sold 8.22% of MELANIA tokens (a sister coin) for $35.76M over four months, causing its price to crash 98.4% (Lookonchain). Similar patterns emerged for TRUMP, with whales offloading tokens hours before geopolitical events (e.g., U.S.-Iran tensions).
What this means:
- Low confidence from creators signals a potential “pump-and-dump” structure.
- Retail investors face asymmetric risks against coordinated team sell-offs.
3. ETF Hype Fades (Mixed Impact)
Overview: Canary Capital filed for a TRUMP ETF on August 13, briefly spiking prices 10% (AMBCrypto). However, the token has since lost 99.58% as the ETF remains unapproved and liquidity exits.
What this means:
- Memecoins often rally on ETF speculation but lack fundamentals to sustain gains.
- The SEC’s view of memecoins as commodities (not securities) hasn’t shielded TRUMP from volatility.
Conclusion
TRUMP’s collapse reflects hyperinflationary tokenomics, insider exits, and fading narrative momentum. While ETF hopes could resurface, the token’s 600B supply and lack of utility make recovery unlikely. Key watch: Monitor the SEC’s response to Canary’s ETF filing by August 30 for regulatory clarity.