Trump and Melania’s Coin Fiasco: Whales Feast While Retail Suffers 🐋💔

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In a tale as predictable as the tides, the launch of the Official Trump (TRUMP) meme coin by the ever-so-humble US President Donald Trump inspired a stampede of investment akin to lemmings over a cliff. Not to be outdone, the First Lady Melania Trump dipped her pedicured toe into the crypto pond with her own Official Melania (MELANIA) coin, further inflating the speculative bubble.

Alas, the bubble burst like a soap bubble in a typhoon. Both the TRUMP and MELANIA coins took a nosedive that would make even the most seasoned of deep-sea divers blush, plummeting over 50% and 80% from their pinnacles, respectively.

The Whale’s Tale of Woe

Chainalysis, the crypto detective, has uncovered a rather sordid story. It seems that while the majority of TRUMP holders are mere minnows, a pod of whales has reeled in substantial profits. Approximately 50 wallets have netted over $10 million, showcasing the profound influence of these early or high-volume investors. It’s a case of the rich getting richer, and the poor… well, you know the rest.

Upon closer examination, it appears that after the minting of 1 billion TRUMP tokens, four wallets swallowed the lion’s share. These wallets, no doubt, belong to the sort of people who would hoard gold in a dragon’s lair. Despite the lopsided distribution, the retail investor base remains vast, if not particularly wealthy.

As of January 21, most wallets holding TRUMP or MELANIA contained a mere pittance, barely enough to buy a latte at a trendy café. Over 80% of these investors hold less than $1,000 in assets on the Solana blockchain, and half are so new to Solana altcoins that they probably still believe in the tooth fairy.

While retail participation is as abundant as sand on a beach, profits are as elusive as aYeti. Over 77% of wallets holding TRUMP have realized gains that wouldn’t even cover a modest dinner for two. Yet, the whales continue to dominate, with 40 wallets holding over $10 million in TRUMP or MELANIA tokens, accounting for a staggering 94% of the total supply. Such is the way of the world.

Under the Microscope

Despite the fanfare surrounding the TRUMP and MELANIA tokens, the presidential couple’s foray into crypto has been met with a chorus of disapproval.

James Thurber, a man who has seen more political shenanigans than a circus ringmaster, accused Trump of using his crypto cheerleading as a personal piggy bank. In a scathing statement to the Guardian, Thurber decried the situation, suggesting that Trump’s interest in cryptocurrency is about as altruistic as a shark’s interest in swimming lessons.

“There are shameful and major conflicts of interest with respect to his family business benefiting from his cryptocurrency policies. (Trump) does not seem to worry about the public interest with respect to cryptocurrency. He seems to be driven by profit and wanting to be a major part of the billionaire class in the US.”

Meanwhile, FinTAX’s meticulous analysis has highlighted a veritable minefield of legal, tax, and political risks for the TRUMP meme coin. Concerns range from SEC regulatory scrutiny (because no one wants to be on the wrong side of the Howey Test) to tax compliance challenges and potential political finance violations. It’s a risky game, and the TRUMP coin might just be playing with fire.

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2025-01-23 21:58