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Chainalysis: Crypto whales own the bulk of Trump family tokens.
Chainalysis reports that around 94% of the TRUMP and MELANIA tokens are controlled by roughly 40 crypto whales, each holding over $10 million worth. This significant concentration of holdings raises concerns about the influence of a small number of investors on the token’s market dynamics. Despite this, the launch of these memecoins attracted a substantial influx of new crypto users, with nearly half of the buyers creating wallets on the same day they purchased the tokens.
Discrepancies in Token Distribution and Transparency Concerns
While the teams behind the TRUMP and MELANIA tokens have claimed that the distribution mirrors typical token launches, blockchain data from platforms like Bubblemaps indicates discrepancies in the MELANIA token’s distribution, with nearly 90% of its supply being held in a single wallet. This raises questions about the transparency and fairness of the token allocation process, casting doubt on whether the tokenomics align with the public claims made by the project teams.
Interestingly, Chainalysis found that while most holders have barely broken even—77% of TRUMP holders have made less than $100—60 whales have made over $10 million. The report also revealed that only a small percentage of holders lost significant amounts, with only a few losing between $10,000 and $100,000. This suggests that while a few investors have profited massively, the majority of retail investors have seen little return.
Conclusion: Balancing Power in the Crypto Market
The launch of these tokens not only highlighted the continued rise of memecoins but also sparked further debate about the role of large investors, or “whales,” in shaping the value and success of cryptocurrencies. The presence of these powerful players may overshadow the experience of smaller investors, calling for more scrutiny and perhaps stronger regulations to ensure a more equitable distribution in future cryptocurrency projects.
As the industry grows, ensuring transparency in token allocation and fairer market dynamics will be crucial for building trust and protecting retail investors from disproportionate risks and rewards.
