The Real Winners of the Trump Memecoin Feeding Frenzy

On Wednesday, the team behind the official Donald Trump Mimikoin sparked a commercial madness after they announced that investors carrying the largest amount of encryption in the coming weeks will be invited to a dinner party attended by the US president.

“In this intimate private dinner, I hear the direct president Trump talks about the future of encryption [sic]”Read the list on Trump Quinn.” The most distinctive invitation in the world. Only $ 220 of Meme Trump. “Dinner is scheduled to happen on May 22.

Traders rushed to buy Trump currency, some of them try to collide themselves in the invitation list and others hope for profit, according to the analysis conducted by the Blockchain Nansen Analysis Company. Within an hour, its price increased by approximately 60 percent.

However, for the organizers who own 80 percent of the CIC Digital LLC and Fight Fight LLC, the Trump -owned cluster branches – the market price was a secondary concern. In the direct term, these companies benefit mainly based on the trading of people.

When Trump Mimikoen announced in January, the two organizations have transferred 10 percent of the total offer to the alleged liquidity set, and its purpose is to ensure the trading of the original freely. In exchange for providing liquidity and promises to buy and sell the currency, the deals-known as the market-making-the organizations that highlight Trump require fees. These fees range from 0.1 to 10 percent of each trade according to the current demand level. Think about it like pricing the mutation on the application of horseback riding.

“If you have a coin and control the making of the market and the resulting fees, what you care about is the movement of size and prices, not the price itself,” says Nathan Van der Hayden, Crypto Combian Aragon business development.

Previously, the entities that highlight Trump have received tens of millions of dollars in commercial fees regarding Trump. During the 24 hours that followed the dinner, $ 1.6 million of fees were raised by the Trump liquidity group shareholders on Meteora, through which the distinctive symbol was originally released. Most of these funds will be due to CIC Digital and Fight Fight as the largest shareholder in the complex, based on previous reports.

On paper, organizations that highlight Trump will also get any estimate in the Trump price, as they are the largest larger bearers. But in practice, they are prevented from selling their hideout from metal currencies, partly through a mechanism that limits access to their property for three years, and partly through the reverse reactions caused by the inevitable decline in the price caused by any significant sales.

Van der Hidin says: “The optics of benefiting from selling your own currency are terrible, while making use of the market is not transparent enough to protect your reputation.”