Donald Trump, the Republican candidate and former president, finds himself at the center of another lucrative intrigue – not real estate or business, but the crypto world. His charismatic virality makes him a leading figure in PoliFi meme coins. With more than half a million TRUMP (MAGA) tokens in his digital wallet, Arkham says the question arises: how much are his assets worth today?
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Launched in August 2023, MAGA was the first project to allocate tokens to Trump’s crypto wallet as a successful marketing scheme. On August 16, 2023, MAGA owners sent approximately 470,000 MAGA tokens to Trump’s wallet, followed by another 110,000 tokens on October 9, 2023. Trump received a total of approximately 580,000 MAGA tokens, representing approximately 1.2% of the 46.5 MAGA tokens. million total token supply. At the time, the tokens were only worth a few thousand dollars, as MAGA’s price was less than $0.01.
The MAGA token lay dormant for months after its launch in August and only reached a market capitalization of $2.5 million in 2023. MAGA took off, catalyzed by positive market sentiment in January 2024 – rising from $0.18 to $2.26 (an increase of over 1100%) in just 14 years. to dawn. The next increase occurred on March 3, 2024, to $11.54. Consolidation followed, leading to MAGA rising to $17.52 on May 31, 2024 – its current all-time high. After that, MAGA had a sharp sell-off to $5.55 in mid-June and currently sits around $7.13.
Trump’s 580,000 MAGA tokens have an estimated value of $4.2 million at the current price of $7.13. Trump received his tokens as a gift when MAGA was below $0.01, meaning his MAGA holdings have increased by more than 71,000 percent since then.
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However, the estimated value of Trump’s assets is far from reality when slippage (the difference in the executed trade price compared to the expected trade price) is taken into account. Liquidity (how easily an asset can be converted into cash without affecting its market price) and volatility (rapid price changes in a short period of time) are the main causes of slippage.
During trade execution, volatility is much less of a concern due to the wide distribution of MAGA tokens and large market capitalization – over $350 million. MAGA’s biggest derailment factor is its low liquidity, as at current prices there would not be enough buy orders to fill Trump’s entire holdings. If Trump were to sell all 580,000 tokens, his sell order would consume all available buy orders, causing the total price to drop. If Trump were to sell his entire holding on Uniswap, he would expect to receive only about $2 million. Trump’s profit would be more than 50% less than the nominal estimate of $4.2 million.
This underlines how liquidity plays an essential role in the cryptocurrency market. No one can escape the foundations; high-profile individuals like Trump must navigate complicated market dynamics. This scenario highlights an important lesson for investors: face value does not always translate into actual cash.
Like holding any cryptocurrency, holding meme coins like MAGA comes with its own risks. Meme coins can be extremely volatile, creating a landscape where potential gains quickly turn into significant losses. Making informed decisions and understanding the risks associated with your investment is crucial to maneuvering the unpredictable market.
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This article, Here’s How Much Profit Donald Trump Would Make If He Sold His TRUMP Memecoin Today originally appeared on Benzinga.com
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