The TRUMP meme coin plans to deploy up to 96 million tokens, about 40% of its circulating supply, raising concerns over dilution and price recovery prospects.
"Without a proportional increase in demand, the additional supply could significantly delay any meaningful price recovery," analysts tracking the project's tokenomics said.
Of the total 1 billion token supply, 67% has already been unlocked, but only 237 million tokens are currently in circulation, meaning much of the supply remains off-market and controlled largely by insiders linked to the Trump Organization, according to the project's token distribution data. The 96 million token deployment represents nearly three days worth of the token's average daily trading volume of about $55 million.
The token has lost 83% of its value over the past year, and the additional supply could further pressure prices amid waning interest in the meme coin sector. Efforts to boost liquidity and ecosystem growth through partnerships and gaming have yet to reverse the downward trend.
The deployment is part of the project's broader strategy to expand its ecosystem, including partnerships and gaming initiatives. However, critics argue that without a clear demand catalyst, the steady release of tokens from insider-controlled wallets will continue to weigh on the token's price. The TRUMP token's circulating supply of 237 million represents less than a quarter of the total 1 billion supply cap, suggesting further dilution risks remain as more tokens become unlocked over time.
This article is for informational purposes only and does not constitute investment advice.