The Official Trump (TRUMP) memecoin experienced a significant surge of 52% on April 23, following the announcement of an exclusive in-person dinner with US President Donald Trump for the top tokenholders. This event has sparked mixed reactions within the crypto community, with some viewing it as a sign of the end of the bear market, especially as Bitcoin (BTC) also saw a rebound above $93,000. However, there are concerns raised about the sustainability of TRUMP's rally.

From a performance standpoint, the TRUMP memecoin has faced criticism for its initial high concentration of tokens and short-term vesting period. The token's market capitalization currently stands at $2.6 billion, with 80% of the token supply allocated to founders and entities controlled by Trump. This has raised questions about the justification for such a high valuation compared to more established projects like Arbitrum (ARB), Jupiter (JUP), and Maker (MKR), which have lower market capitalizations.

Despite these criticisms, TRUMP remains a significant player in the crypto market. The memecoin is listed on major exchanges and has a substantial presence in derivatives markets, with futures open interest reaching $700 million. This places TRUMP among the top 10 tokens in terms of trading activity.

While TRUMP is trading significantly below its all-time high, it continues to attract strong trading volume. Excluding stablecoins, only a few cryptocurrencies have surpassed TRUMP's $3.84 billion 24-hour turnover. However, the sustainability of this demand remains questionable, especially considering the concerns surrounding token unlocks.

The comparison with other memecoins like Shiba Inu (SHIB), which boasts a market capitalization of $8 billion despite lacking utility, raises questions about the perceived value of TRUMP. The endorsement by a sitting US President adds a unique dimension to TRUMP's value proposition, potentially paving the way for higher price targets.

In conclusion, while TRUMP has made headlines with its recent rally and high trading activity, questions remain about its long-term viability and whether it can deliver on its promises. Investors are advised to exercise caution and conduct thorough research before engaging with speculative assets like memecoins.

Source: https://cointelegraph.com/news/us-president-s-planned-dinner-for-trump-memecoin-holders-triggers-52-price-surge-will-it-last?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound