On April 18, an unprecedented event in the cryptocurrency market is set to unfold: the first $TRUMP token unlock will release over $300 million, equating to 20% of its total market capitalization. This significant metric is expected to influence the token’s value substantially.
An Uncommon Unlock Event
Unlocks of this magnitude are a rarity in the cryptocurrency ecosystem. Approximately 20% of the circulating tokens will be released, totaling around $308 million at the current price of $7.70. Investors are wary, as the release of these 40 million tokens could induce substantial downward selling pressure.
The $TRUMP token has underperformed relative to the overall market, decreasing by about 3.4% over the past week, while Bitcoin has risen nearly 7%. In addition to the April 18 unlock, a second program will release 48,000 tokens daily, totaling nearly $3.5 million over two years.
Potential Consequences of the Unlock
The upcoming unlock event will likely lead to extreme volatility for the $TRUMP token. Investors who hold or plan to purchase this cryptocurrency in the coming days—especially those with leveraged positions—should proceed with caution.
The most likely scenario anticipated by market analysts is a significant market downturn. Many are preemptively selling their tokens, hoping to repurchase at lower prices. Notably, analyst Kaizen plans to short the token ahead of the unlock.
Nice $TRUMP unlock soon. Will short this to zero before the unlock. $409M unlock lol. pic.twitter.com/FQKcwQrnWZ
— Kaizen (@KAIZ3NS) March 31, 2025
While opening a short position suggests bearish sentiment, it’s important to remember that it necessitates buying back the tokens later. High volumes of short positions can occasionally trigger a short squeeze, resulting in a sharp price increase as short sellers frantically cover their positions.
A Concerning Element
A disturbing trend has emerged on the blockchain, inciting speculation. Two separate wallets, likely linked to the same individual, recently purchased $5 million worth of $TRUMP tokens at an average price of around $8, a notable event given that the last purchase exceeding $1 million occurred 25 days ago. Many suspect insider trading in anticipation of a price boost following an announcement or a tweet from Donald Trump, allowing insiders to profit by selling at a higher price.
2 newly created wallets(likely the same whale) spent $5M $USDC to buy 630,339 $TRUMP at $7.93 8 hours ago. pic.twitter.com/NDMZ6TQJog
— Lookonchain (@lookonchain) April 16, 2025
This upcoming unlock event marks just the beginning, with another set for July 18, where 50 million tokens will be issued. One thing is certain: volatility is on the horizon.
Sources: CryptoRank, Tokenomisst
Recent Articles:
- The United States May Purchase Bitcoin with Tariff Revenues
- Base Launches Meme Coin, Quickly Collapses
- Key Takeaways from the Federal Reserve Chair’s Speech Last Night
Share
Thibaut Pierrain
