On Wednesday, the team behind the official Donald Trump Memecoin caused commercial madness after the announcement that investors who had the largest amount of cryptographic coin in the coming weeks would be invited to a gala dinner in which the US President participated.
“During this intimate private dinner, hear the first -hand president Trump talks about the future of cryptography [sic]We read list On the Trump coin website. “The most exclusive invitation in the world. Only for the best $ 220 Trump Meme Mone Mones.” Dinner will take place on May 22.
Traders rushed to buy a Trump coin, some tried to fall into the list of invitations, and others simply hope for profit, according to the analysis of Blockchain Analytics Nansen. Within an hour its price had increased by almost 60 percent.
However, in the case of two organizations with 80 percent of the coin supply – CIC Digital LLC and Fight Fight Fight LLC, branches of the conglomerate belonging to Trump – the market price was secondary care. In the immediate period, these companies benefit primarily on how often they trade them.
When Trump announced his memecoin in January, both organizations 10 percent of total supply lazy In the so -called liquidity pool, the purpose of which is to ensure free trafficking in activist. In exchange for providing liquidity and promising to buy and sell a coin when transactions appear as market creation-organizations related to Trump fee. This fee ranges from 0.1 to 10 percent of each trade depending on the current level of demand. Think about how about the afterkwan prices in the driving application.
“If you have a coin and control the market and generated fees, what you care about is the movement and price movement, not the price itself,” says Nathan van der Heymen, head of business development at Aragon’s cryptographic company.
Earlier entities related to Trump apparently He earned tens of millions of dollars of commercial fees in connection with the Trump coin. Within 24 hours after dinner announcement, the $ 1.6 million fee charged by collaborators of Trump’s liquidity pool to a meteora, an exchange in which the token was originally launched. Most of this money will be counted on Cic Digital and Fight Fight Fight as the biggest contributions in the pool, based on Previous reports.
On paper, organizations related to Trump can also gain on the basis of recognition at the price of Trump, because they are by far the largest owners. But in practice they cannot sell their spots of coins, partly by the mechanism limits access to their shares for a period of three years, and partly from a slack perspective resulting from an inevitable price drop caused by any immense sales.
“Optics of deriving the benefits of selling your own coin is terrible, while deriving the benefits of creating the market is muddy enough to protect your reputation,” says Van der Heyden.