A recent analysis by blockchain analytics firm Chainalysis reveals that over 77% of wallets holding the TRUMP meme coin have realized earnings of less than $100. This finding underscores the significant concentration of wealth among a small group of investors, often referred to as “whales,” within the TRUMP meme coin ecosystem.
Concentration of Holdings
The Chainalysis report highlights that a mere 40 wallets control approximately 94% of the total supply of TRUMP and MELANIA tokens. These wallets each hold $10 million or more in the tokens, indicating a high level of centralization.
Retail Investors’ Limited Gains
Despite the initial surge in the TRUMP meme coin’s market capitalization, the majority of retail investors have seen minimal financial gains. The report indicates that wallets holding between $1 million and $10 million worth of the tokens represent only 2.1% of the supply, while those with holdings valued between $100,000 and $1 million account for just 1.7%. Notably, 2.2% of token holders possess less than $100,000 worth of either token.
Influx of New Investors
The launch of the TRUMP and MELANIA tokens attracted a significant number of new participants to the cryptocurrency market. Nearly half of the buyers created wallets on the same day they purchased TRUMP or MELANIA tokens, suggesting that these meme coins appealed to first-time crypto investors. Data shows that TRUMP has been acquired by approximately 790,000 wallets, while MELANIA is held by around 343,000 wallets.
Market Dynamics and Risks
The disproportionate distribution of token holdings raises concerns about market manipulation and the potential for significant price volatility. With a small number of wallets controlling the majority of the supply, these “whales” have the capacity to influence market prices substantially. This centralization poses risks for smaller investors, who may experience substantial losses due to sudden market movements initiated by large holders.
Conclusion
The Chainalysis findings shed light on the unequal distribution of wealth within the TRUMP meme coin market. While the tokens have attracted a large number of retail investors, the majority have realized minimal financial gains, with over 77% earning less than $100. The concentration of holdings among a small group of wealthy investors underscores the importance of conducting thorough research and exercising caution when participating in highly speculative markets.
