Why Are Traders Offloading Their Trump Memecoin Holdings After Dinner Announcement?

[Hypedyor]

Data from blockchain analytics firm Nansen reveals that the TRUMP memecoin, linked to former U.S. President Donald Trump, has seen significant outflows recently. Over the past seven days, the memecoin experienced $869 million in outflows compared to just $96 million in inflows. This trend occurred during the week Trump announced that holders of the top 220 TRUMP tokens could apply for a chance to meet him at a dinner event in Washington, D.C., with a few lucky holders getting the chance to tour the White House.

Despite the dinner offer, many holders have been eager to offload their TRUMP tokens. Blockchain data showed that more people sold off their tokens than those buying in. Some new buyers still entered the market, likely to secure the dinner ticket or profit from the price fluctuations. However, many previous holders chose this moment to exit their positions.

As of April 25, the top TRUMP tokenholder had over 1.17 million tokens, worth roughly $16 million. The identity of this holder, "Sun," led to speculation that it could be Tron founder Justin Sun, a known supporter of Trump and investor in the Trump family's crypto firm. Other holders included usernames like “elon” and “doge,” fueling further speculation that figures like Elon Musk might be involved, though there's no confirmation.

The TRUMP token has raised concerns from U.S. lawmakers and crypto industry leaders, questioning potential conflicts of interest. The team behind the token controls 80% of the total supply, causing worries that Trump or his family could manipulate or even “rug-pull” the investment. Before the 2024 election, Trump had arranged a similar dinner event for NFT holders, and it's unclear whether any of those same individuals are now among the top TRUMP tokenholders.

In short, while there’s still interest in Trump’s memecoin, especially tied to the dinner offer, many traders are choosing to sell off their holdings due to price volatility and concerns over its centralization.