The market capitalization of Donald Trump's meme coin, Official Trump (TRUMP), briefly exceeded $14.5 billion; however, it did not have a noticeable impact on the overall cryptocurrency market.
Headlines about "connecting 400,000 users" created an impression that the asset garnered global attention, commented Harrison Yang, founder of the gaming Web3 studio Mirai Labs. Yet, for the most part, the excitement remained at the discussion level, he added.
"When it comes to actual liquidity and capital that entered the token, a very small portion (in monetary terms) came from new investors. Unfortunately, we ended up seeing merely a movement of hot money," Yang stated.
He noted that this was particularly evident in the influx of funds into the Solana ecosystem.
According to Chainalysis research, about 50% of TRUMP investors had previously not owned blockchain assets and created wallets on the day they purchased the meme coin.
On January 19, the token's price peaked at $73.43 but plummeted following the inauguration of the current U.S. president the next day. As of this writing, TRUMP is trading around $26, having dropped nearly 11% in the last 24 hours.
The token's market cap is approximately $5.2 billion, while its fully diluted valuation, considering locked-up coins in vesting, approaches $26 billion.
Data from Dune's dashboard indicates that the number of TRUMP holders has decreased significantly. The vast majority of investors are still either breaking even or facing losses of up to $1,000.
It is worth noting that Trump's launch of the meme coin before taking office raised ethical concerns among experts. The U.S. Congress has pointed out potential conflicts of interest regarding all of the president's crypto projects, including World Liberty Financial.
