Official Trump (TRUMP): Will This Meme Coin Pump or Dump After 40 Million Tokens Are Unlocked?

The world of meme coins is known for its volatility and unpredictable price swings, and the Official Trump (TRUMP) token is no exception. This Solana-based cryptocurrency, inspired by former U.S. President Donald Trump, is approaching a significant milestone: its first token unlock. 

With approximately 40 million TRUMP tokens scheduled to be released to the project's team next Friday, the question on everyone's mind is whether this event will trigger a pump or a dump.

Understanding the Trump (TRUMP) Token Unlock Event

According to data from the crypto analytics platform Tokenomist, the upcoming token unlock will introduce around $320 million worth of TRUMP tokens into the market, based on the token's current price. Following this initial unlock on April 18, approximately $4 million worth of TRUMP will be unlocked per day until the next scheduled unlock event in July.

This gradual increase in the circulating supply has raised concerns among some investors, who fear that it could lead to increased selling pressure and a subsequent price decline. Token unlocks typically impact an asset's scarcity, which, in turn, requires greater demand to sustain current price levels.

Trump (TRUMP) Potential Bearish Impact

Sidney Powell, co-founder and CEO of DeFi lender Maple Finance, expressed that token unlocks are generally bearish due to their negative impact on an asset’s scarcity. With TRUMP’s circulating supply set to inflate by 20%, Powell anticipates that investors will become more inclined to sell, potentially driving the price down.

The phased approach of the unlock, spanning several months, may mitigate some of the immediate selling pressure compared to a sudden, large-scale unlock. However, the consistent addition of new tokens could still weigh on the market as investors adjust to the increased supply.

Also Read Official Trump Price

Trump (TRUMP) Unique Owner Base and Mitigation Factors

Despite concerns over the token unlock's potential impact, there are factors that could mitigate the bearish effects:

Inexperienced Investors

Chainalysis data indicates that TRUMP initially attracted many crypto newbies, with many wallets purchasing TRUMP as their first altcoin on Solana. These less experienced holders may be less likely to drive sell pressure compared to seasoned traders.

Community Engagement

The strength of the TRUMP community could play a crucial role in sustaining demand and preventing a significant price drop. If the community remains active and supportive, it could help absorb some of the selling pressure.

Trump's Promotion

Like past promotions on social media, Trump could theoretically pull a similar maneuver, said Matthew Nay, a research analyst at the crypto analytics website Messari.

Also Read Will TRUMP Survive Its Token Unlock? A Potential Bearish Movement Ahead

Trump (TRUMP) Market Performance and Sentiment

As of April 12, 2025, TRUMP was trading around $8.10, showing signs of recovery after dipping below $7.30 earlier in the week, according to Degenz.Finance. However, this price still reflects a significant decline from its all-time high of $73.43, which it reached shortly after its launch on January 17.

The meme coin can be used to purchase goods at Trump-linked venues like GetTrumpWatches.com, GetTrumpFragrances.com, and GetTrumpSneakers.com. But since the asset’s all-time high, around 191,000 wallets have sold their TRUMP, with less than 13,000 holding over $1,000 worth, according to on-chain data tracked via a Dune dashboard.

Despite this decline, TRUMP maintains a market capitalization of $1.6 billion, highlighting the persistent interest in the meme coin. The fact that the project still has a market cap of $1.6 billion is amazing, said Matthew Nay, a research analyst at the crypto analytics website Messari.

Trump (TRUMP) VC Promotions

Venture capitalists may promote a token ahead of its unlock event, hoping that hype can negate any of the associated sell pressure, Nay said. However, he added that he doesn’t expect there to be any classic token unlock pump. Hopefully, the president has other things on his mind that he's worrying about, he concluded.

Alternative Scenarios for Trump (TRUMP)

Hype and Community

If the community rallies behind TRUMP and generates enough hype to offset the increased supply.

External Catalyst

An unforeseen event, such as a major endorsement or partnership, could drive demand and counteract selling pressure.

Stable Market

If broader cryptocurrency market sentiment remains stable or bullish, it could provide a favorable backdrop for TRUMP to weather the token unlock event.

Also Read Official Trump (TRUMP) Coin Price Analysis for 2025

Conclusion

The upcoming token unlock presents both challenges and opportunities for the Official Trump (TRUMP) meme coin. While the increased supply could lead to downward pressure on the price, several factors could mitigate this risk, including a strong community, strategic promotions, and broader market sentiment.

Investors should remain cautious and monitor key indicators such as trading volume, social media sentiment, and whale activity in the days and weeks surrounding the token unlock event. As with all meme coins, investing in TRUMP involves significant risks, and thorough research is essential before making any decisions.

Whether TRUMP will pump or dump remains uncertain. But the outcome will depend on how well the community can rally, how successfully they can promote the coin, and whether any external catalysts emerge to drive demand and counteract the potential selling pressure

FAQ

1. What is the significance of the upcoming token unlock for TRUMP?

The upcoming token unlock on April 18 will release approximately 40 million TRUMP tokens, worth around $320 million, into circulation. This increase in supply could lead to selling pressure and impact the token's price.

2. How might the token unlock affect TRUMP's price?

Token unlocks typically create bearish sentiment as they increase circulating supply, which may lead investors to sell. However, the unique owner base of TRUMP, consisting of many inexperienced investors, might mitigate immediate sell pressure.

3. What factors could influence TRUMP's price after the unlock?

The price movement post-unlock will depend on community engagement, potential promotional efforts by Donald Trump, and overall market sentiment in the cryptocurrency space.