Next week, a staggering $321 million worth of Trump memecoins will flood the market, raising concerns among investors. The official Trump memecoin, tied to former U.S. President Donald Trump, is set to unlock 40 million vested tokens on April 18 in a single “cliff unlock” event.
With the Trump memecoin currently trading around 8, this sudden influx of supply could further impact its already declining value. Since its all-time high (ATH) of 73.43 in January, the token has plummeted by 89%, leaving many retail investors at a loss.
What Is a Token Vesting Unlock?
Token vesting is a common practice in the crypto industry designed to prevent early investors and project teams from dumping large amounts of tokens immediately after launch. Instead, tokens are locked for a set period before being gradually released.
However, the Trump memecoin unlock is a “cliff” event, meaning all 40 million tokens will hit the market simultaneously. Such large-scale unlocks often lead to price drops as holders rush to sell their newly accessible assets.
Investor Losses and Market Impact
While the creators of the Trump memecoin reportedly profited over 350 million, retail investors have faced significant losses. According to blockchain analytics firm Chainalysis, more than 813,000 wallets suffered combined losses of around 2 billion following the token’s rapid rise and fall.
The upcoming unlock could exacerbate the downward trend. Historical data shows that major token unlocks often trigger sharp declines. For example, Arbitrum’s $2.32 billion token unlock in March 2024 led to an 84% drop in its ARB token price.
How the Trump Memecoin Compares to Other Unlocks
The Trump memecoin unlock is the largest single event scheduled for the week of April 14–20, accounting for 61% of the total $519 million in tokens set to be released across various projects.
Given the token’s already weakened state, this event could lead to further volatility. Investors holding Trump memecoins should brace for potential sell-offs as early backers may look to exit their positions.
Will Trump Memecoins Recover?
The future of Trump memecoins remains uncertain. While meme-based cryptocurrencies often thrive on hype and speculation, the sharp decline and impending token unlock suggest a challenging road ahead.
If the token fails to regain momentum, it could follow the path of other meme coins that faded after initial excitement. However, if new demand emerges—perhaps tied to political developments—the Trump memecoin could see a resurgence.
Key Takeaways for Crypto Investors
- Monitor the unlock date (April 18) – Expect increased selling pressure.
- Assess market sentiment – Watch for reactions from major holders.
- Consider historical trends – Large unlocks often lead to price drops.
- Evaluate long-term potential – Determine if Trump memecoins have staying power beyond speculation.
As the crypto market braces for this major event, all eyes will be on whether Trump memecoins can withstand the sell-off or if they’ll continue their downward spiral. Trust The Bit Gazette to keep you updated with the latest news and expert opinions.
