At 9:44 PM ET on a casual Friday night, President-elect Trump launched the largest memecoin in history, $TRUMP.
Since then, the coin has surged 9,500%, with $2.2 BILLION in trading volume in less than 12 hours.
What does all this mean? Let us explain.
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The initial launch of the coin was so hard to believe that it came with skepticism.
Traders guessed that Donald Trump's account was hacked.
However, no statement regarding the hack has emerged, so the coin has continued to rise.
At 12:45 PM ET, $TRUMP broke above $10.00 and the rally quickly accelerated.
In fact, not even Elon Musk was sure that Donald Trump's X account hadn't been hacked.
Nearly 12 hours later, it is clear that this coin was legitimately flipped by Trump.
Donald Trump is now the first president in history to launch a memecoin.
In the early hours, traders were making unprecedented returns on swings.
In the first 2 hours, one trader turned $50,000 into nearly $1.1 MILLION.
The coin, $TRUMP, outperformed the 30-year return of the S&P 500 in the first 2 hours.
And it continues to increase as we speak.
For example, $100 invested in the S&P 500 in 1994 would be worth $2,250 today.
This represents a 2,150% return over the last 3 decades on the index.
Trump's memecoin $TRUMP has returned +4,000% in less than 4 hours after its launch last night.
The million dollar question: will it hold up?
First, it is important to note that only 20% of the MAX supply is currently on the market.
This means that the supply is currently 200 million coins.
Over the next 36 months, the remaining 800 million coins will be available for supply.
Trump is believed to hold that $800 million.
This explains the market cap versus the fully diluted valuation (FDV) of the coin.
If a total supply of 1 billion were in circulation right now, the total market cap would be approximately $21 billion.
But since only 200 million out of 1 billion coins are in circulation (20%), the market cap is approximately $4.2 billion.
The question is:
Will demand be able to keep up when the remaining 80% of supply hits the market?
Here is the $TRUMP coin issuance schedule that shows how the maximum supply will be reached.
Skeptics say this will take the currency to $0, while optimists say it is a gradual issuance schedule.
Here is a possible interpretation of this emissions curve.
In the first 3 months, probably 0 tokens will be released due to cliffs.
From there, the token supply increases from 16.7 million per month to 33.3 million per month after year 1.
Can the market handle this supply?
Now we are starting to see some WILD trades.
One trader invested $1.1 million in the $TRUMP coin at the time of launch.
This morning, that position was worth $120.3 MILLION, with approximately $119 million in profit.
Another trader reportedly turned $800 into over $300,000.
Google search interest in "Trump Coin" remains at record high as Americans watch the news.
The timing was odd, as the coin's launch on a Friday night meant many missed the initial news.
Could this be the coin that spurs widespread cryptocurrency adoption?
It will be interesting to see how this all plays out, as the coin is still less than 1 day old.
Millions of dollars in volume flow per minute with hundreds of $BTC trades
Are you buying $TRUMP coin?