Donald Trump-Themed Meme Coins Breed Crypto Millionaires as MAGA Token Surged

The rise of the TRUMP token, which is not directly linked to Donald Trump, has created a new class of millionaires in the PoliFi crypto sector.

The Trump campaign announced that it will begin accepting crypto donations, including Bitcoin (BTC), Ethereum (ETH), memecoin (DOGE), and shiba inu (SHIB).

Analysis from on-chain data provider Nansen shows that the young PoliFi crypto sector, a frontier where politics, finance and cryptocurrency meet, is minting a new class of millionaires as a token themed after the rise of Donald Trump in the last few weeks.

While the issuance of the TRUMP token has nothing directly to do with former US President Donald Trump, traders are using the tokens as a speculative bet on Trump’s ongoing presidential campaign.

According to CoinGecko data, the Trump MAGA (TRUMP) token has increased by approximately 75% in the last two weeks. It rose 14% on Tuesday after the Trump campaign announced it would begin accepting crypto donations, including Bitcoin (BTC), Ether (ETH), memecoin (DOGE), and Shiba Inu (SHIB).

Out of all this, some holders of the MAGA meme coin, the first experiment in a new token category called PoliFi with a collective market cap of $749 million, have seen returns of over 1,600%.

Such an address has a token value of over 5.5 million dollars.

So how do the top 10 TRUMP sellers in the chain compare?

Judging by the top address, they’re crushing it

They bought TRUMP early and maximized their profits with unrealized gains of over 1,600% pic.twitter.com/l18iUe6xh8

— Nansen 🧭 (@nansen_ai) May 21, 2024

Several addresses purchased low six figures in TRUMP tokens and are currently facing unrealized gains of over $1 million. They gradually reduce their holdings, but do not sell in a way that would cause sudden price drops. Therefore, these sales were made before Tuesday’s campaign donation announcement.

However, the data showed that the return on investment of recent buyers of the TRUMP token was low and the overall winning rate was low.

Meanwhile, the value of TRUMP assets sent to a wallet linked to the real Donald Trump has risen to nearly $5 million.

Coins in a wallet linked to Donald Trump. (Arkham)

A wallet allegedly linked to Trump received $7,100 of TRUMP from the developers of the meme coin between August and October 2023.

Sending tokens to a wallet linked to popular assets is sometimes used as a marketing strategy by meme coin makers because it can attract attention and spark investor interest.

The story continues