On Wednesday, the team behind the official Donald Trump Memecoin announced that investors with the largest number of cryptocurrencies in the coming weeks will invite the U.S. president to a grand dinner.
“In this intimate private dinner, first-hand President Trump talks about the future of cryptocurrencies [sic]”The list read on the Trump Coin website. “The most unique invitation in the world. Applicable only to the first $220 Trump meme coin holders. “Dinner is scheduled to take place on May 22.
According to analysis by blockchain analytics company Nansen, traders are anxious to buy Trump coins, some are trying to include themselves on the invitation list, while others are just looking to make a profit. Within an hour, its price rose by nearly 60%.
But for two organizations that have 80% of the coin supply – CIC Digital LLC and Fight Fight LLC, Trump’s branch of the Trump-owned conglomerate – market price is a secondary issue. In the near future, these companies are profiting mainly based on the frequency of people’s transactions.
When Trump announced his membership in January, both organizations remitted 10% of the total supply into the so-called liquidity library, with the aim of ensuring that assets can be traded freely. As supply liquidity and promises to return the transaction in (known marketing), the organization Trump researched levies fees. Based on current demand levels, this fee ranges from 0.1 to 10% per transaction. Think of it as a climax pricing on a ride app.
“If you have coins and you control the market and expenses of the market, then you are concerned about quantity and price movements, not the price itself,” said Nathan van der Heyden, head of business development at Crypto Company Aragon.
According to reports, transaction fees related to Trump coins have been reportedly received tens of millions of dollars in transaction fees. Within 24 hours after the dinner was announced, contributors to Trump’s liquidity pool charged $1.6 million, a contribution from Meteora, the exchange originally launched by the token. According to previous reports, most of the money will accumulate into CIC numbers and combat combat, which is the biggest contributor to the pool.
On the surface, the organizations Trump research will also receive any appreciation for Trump’s price, as they are by far the largest holders. But in reality, they were blocked from selling the hiding place of coins, partly because a mechanism that restricted their holdings within three years, partly because of a rebound due to price drops caused by any large sale.
“The optical algorithm that profits from selling your own coins is bad, and what is profitable from the market is enough to protect your reputation,” Van der Heyden said.
