The new cryptocurrency $TRUMP, created by supporters of the former U.S. President, is now facing a spotlight from Democrats. That’s according to new data from 5280 Invest, which reveals a shocking disparity between how many investors there are and how many actually earned a profit. The token was able to do so by onboarding a net total of ~2 million active wallets. Nine out of ten of these investors have failed to reap significant rewards, with most losing money. The token's structure, controlled supply, and scheduled unlocks have raised concerns about its long-term viability and potential risks for investors.

The new $TRUMP token was an immediate hit, shooting to an $8.7 billion market cap within hours. In 2021, at its absolute height, each of these tokens skyrocketed to $44.2. As of this writing, it is trading at $11.01. With its current $2.2 billion market cap, it is the 54th largest cryptocurrency by market cap. Despite the initial hype, data indicates that only 58 wallets holding $TRUMP have made significant profits, with most investors facing losses.

Disparities in Investor Returns

As per blockchain analytics firm Chainalysis, just 58 wallets with $TRUMP have made over $10 million in profit. This is a very small percentage, less than 0.0075%, of the total number of wallets that have ever bought the token. In comparison, nearly 764,000 wallets that purchased investments in $TRUMP are now seeing red.

We notice that a very small number of wallets capture a huge concentration of profits. This goes to the heart of market manipulation and the integrity of the investment process. Critics counter that the token’s design gives an unfair advantage to a limited number of connected users. This does an extreme disservice to the broader investor community. The vast majority of eager investors have suffered painful and irreversible losses. This has led to a chorus of new demands for increased regulatory guardrails around meme coins and other speculative digital assets.

With these graphics we start to uncover just how chaotic the crypto world can be. Generally, meme coin investments are risky as they tend to be driven by hype and speculation rather than established fundamentals. We encourage investors to use extreme diligence and care when investing in these types of assets.

Token Structure and Supply Control

Regardless of rights, concerns have been raised about the token’s supply. According to multiple published accounts, the development team now controls 80% of the total supply of $TRUMP token. This new level of control raises fears of potential market manipulation. Moreover, it calls into question the team’s ability to manipulate the token’s price.

In addition, daily unlocks of $TRUMP tokens totaling $5.4 million are set to continue dropping until April 2027. Other such unlocks may be used to further dilute the token’s value, hurting investors in the process. The scheduled unlocks would further complicate the structure of the token and pose serious questions as to the long-term viability of the token.

Industry experts and regulators have sounded the alarm over dilution from scheduled unlocks and the concentrated nature of supply. They contend that these characteristics could create a lack of transparency and an un-level playing field for other investors, increasing the potential for market manipulation. Developing these types of ideas further, calls for transparency and greater decentralization in the cryptocurrency market have intensified in response to these concerns.

Political and Financial Connections

Is the $TRUMP token one to watch? The $TRUMP token has been all the rage thanks to its ties to Donald Trump and other financial projects. Donald Trump's official website for the meme coin announced a black-tie dinner for the top 220 holders of the token, further intertwining the cryptocurrency with the former president's brand.

Additionally, investigators have stated that 75% of the revenue from the World Liberty Financial Project (WLFI) goes directly to the Trump family. These relationships have led to moral outcry and spurred even more investigation by Democrats and other opponents. The intersection of politics and cryptocurrency has become a growing area of concern for regulators, who are grappling with how to address the potential risks and conflicts of interest.

At the same time, competitors are moving into position to challenge BEST’s supremacy in the crypto world. BEST Wallet already raised $12 million in presale funding and provides access to BEST’s curated presales at phase 0 prices. The wallet is fully self-custodial, multi-chain and supports all blockchains compatible with the EVM (Ethereum Virtual Machine) — 60+ in total. These trends underscore the rapidly evolving world of cryptocurrencies and the continuous innovation in the blockchain space.