The cryptocurrency market experienced significant turbulence during Donald Trump‘s inaugural address on January 20, 2025. Notably, Bitcoin plummeted from its recent peak of $108,786 to approximately $102,000.
The entire crypto community was taken aback by Trump’s conspicuous silence on digital assets during his speech. Many investors had positioned themselves expectantly, anticipating favorable policy announcements.
The market’s immediate reaction exposed deep anxieties, with several altcoins suffering losses. The total cryptocurrency market cap dropped from over $3.85 trillion to about $3.6 trillion, triggering significant liquidations of leveraged positions. This event led to a loss of $250 Billion being wiped out from the market.
Which Ones Did the Worst?
The most dramatic declines were observed in politically affiliated tokens. For instance, $TRUMP and $MELANIA tokens experienced devastating drops of 20% and 32%, respectively.
Moreover, the ripple effect spread throughout the broader cryptocurrency market. Many alt-coins followed suit, with some experiencing double-digit percentage losses.
Solana, Dogecoin, and Cardano were among the altcoins that saw double-digit declines following Trump’s inauguration.
What is Trump Coin?
Trump Coin emerged as a controversial digital asset with an initial supply of 200 million tokens. Additionally, the supply will expand to 1 billion tokens over three years.
Interestingly, the token’s structure reveals a complex distribution mechanism. The release schedule includes various “cliffs” and vesting periods designed to control token circulation.
How is the Holding Structure Divided?
The token distribution reveals a heavily concentrated ownership structure. Specifically, the Trump camp controls an overwhelming 80% of the supply, while the public and liquidity pool each receive 10%.
Furthermore, the ownership within the Trump camp is intricately divided. Notably, six different entities labeled as “Creators & CIC Digital” control varying percentages, with the largest holding 36%.
The very first cliff in the entire schedule would be at 3 months for Groups 1 and 4, when they receive their initial 10% unlock. After that cliff, their remaining tokens would unlock daily over the next 24 months.
How is Trump Earning Money?
Trump’s earning mechanism operates through two primary companies: CIC Ventures LLC and CIC Digital LLC. Both entities are fully owned by the Donald J. Trump Revocable Trust.
Previously, Trump’s ventures in the digital asset space proved highly lucrative. For example, his NFT initiatives through CIC Digital LLC generated over $7 million in 2023.
What are the Drawbacks and Fees?
The fee structure appears particularly aggressive. Initially, there’s a base fee of 1%, but the maximum fee can reach 10%. Additionally, a protocol fee of 0.2% and a dynamic fee of 1% apply.
Remarkably, the token generated $12.5 million in fees within 24 hours of launch. The complex unlocking schedule and not so clear holding structure raises concerns about future this meme coin .
What Was Trump Thinking by Releasing a Meme Coin?
The timing and structure of the Trump Coin launch suggest a calculated move to capitalise on campaign momentum. Particularly, the release coincided with peak public attention during the inaugural period.
Nevertheless, questions arise about the long-term sustainability of this project. Specifically, the concentrated ownership structure and aggressive fee model raise concerns about potential market manipulation.
Who Sold?
One major crypto whale purchased 860,895 TRUMP tokens for $12 million at an average price of $13.94, as reported by Lookonchain. Additionally, a wallet named “LeBron” exchanged $1 million USDC for 4.52 million TRUMP tokens within the first five minutes of launch, doubling its investment to over $2 million. Another trader made headlines by turning $1.1 million into $70 million within four hours, selling 1.35 million TRUMP tokens for 3.65 million USDC while holding onto 4.62 million tokens worth $67.5 million.
Trump’s team reportedly sold $500 million worth of tokens while maintaining control of 85% of the total supply. This revelation has sparked concerns about potential market manipulation and raised questions about the coin’s long-term viability. The significant concentration of tokens within Trump’s team has fueled debates about the fairness and future stability of the project. This has not been confirmed and is reported by Cryptopolitan.
What People Really Think
A recent survey conducted by NFTEvening in partnership with Storible, with 1,017 Americans following the launch of the TRUMP memecoin, has revealed mixed sentiment and adoption rates among the American public. The data shows that 32% of Americans have invested in the TRUMP memecoin, with 27% of these investors reporting profitable positions and 21% of buyers being new to cryptocurrency investments altogether.
However, the survey also highlights significant skepticism among the American population, with 42% expressing their belief that the TRUMP memecoin is scam. These findings suggest a notable divide in public opinion and investment behavior, where despite substantial skepticism, the token has managed to attract a significant number of first-time crypto investors while generating returns for approximately one-quarter of its holders.
Conclusion
The decline in cryptocurrency markets following Trump’s inauguration can be attributed to a confluence of factors that culminated in a significant market correction. The absence of any cryptocurrency mentions in Trump’s inaugural address, despite previous campaign signals suggesting a pro-crypto stance, dealt a substantial blow to investor confidence.
This disappointment was particularly impactful given the considerable market speculation and price appreciation that had preceded the inauguration, driven by expectations of favorable regulatory changes under the new administration. When these anticipated policy announcements failed to materialise, many investors who had positioned themselves for positive developments chose to take profits, triggering a broader market sell-off that reflected the deflating optimism in the cryptocurrency space.
Written By Fazal Ul Vahab C H
