Trump Dinner Invitation to Large Investors: Sincere Hospitality or Another Agenda?

According to reports, the "TRUMP DINNER" will be held on May 22 in Washington, D.C. The event plans to invite the top 220 holders of TRUMP tokens, with the top 25 holders receiving qualifications for a private VIP reception with Trump and enjoying a special VIP tour of the White House the following day. Trump will attend the dinner as a guest, and this event does not involve fundraising.

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This news reminds people of the recent token unlocking event: on April 18, TRUMP unlocked 40 million tokens, worth about $300 million, accounting for 20% of the circulation. It is thought-provoking that as soon as the tokens were unlocked, Trump immediately announced an event to "host" Large Investors. Is this truly a gesture of gratitude towards supporters, or is it a strategically arranged move with deeper implications?

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After the dinner announcement was made public, the price of TRUMP surged, reaching a high of $14.37. As of the time of writing, the TRUMP quote is $12.37, an increase of over 33%.

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Agile Response of Large Investors

Data monitoring shows that after the release of the dinner news, an investor spent 5 million USDC to purchase 407,467 TRUMP at a price of 12.27 dollars. Subsequently, this investor sold all holdings for a total price of 5.73 million dollars in less than 30 minutes, netting a profit of 731,800 dollars.

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Another long-term liquidity provider withdrew liquidity from two wallets that morning, obtaining 211,977 TRUMP (worth $2.76 million) and 18,376 SOL (also worth $2.76 million). Both wallets are now among the top 220 holders and are expected to receive dinner invitations. This investor purchased 332,424 TRUMP (worth $802,000) at a price of $2.41 on the day of the token listing and provided liquidity. At the price peak, these tokens were valued at over $24 million.

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However, not all investors are that lucky. On-chain analysis shows that a TRUMP Token investor liquidated their position about 20 hours before the positive news was announced, realizing a profit of only $483,000. Had the investor held their position until after the news was released, their theoretical profit could have reached $4.28 million.

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The long-term performance of TRUMP Token is concerning

Looking at the overall trend since its launch, the TRUMP Token has performed disappointingly. Although it soared to over $75 on the day of issuance, its rise quickly receded as investors noticed the token's high concentration and short exercise period. After its launch on January 17, the market capitalization briefly reached around $15 billion, but it plummeted more than 50% by January 20. Considering that 80% of the supply was allocated to founders and related entities controlled by Trump, the current market capitalization of $2.6 billion is difficult to deem reasonable.

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Although Trump's latest activities have boosted trading volume in the short term, it is difficult for the substantial trend of Token prices to fundamentally change just because of a dinner. The current price increase is the result of market speculation combined with Trump's "sentiment marketing." In the long run, unless TRUMP can address investors' concerns about Token unlocking, it will be difficult to reverse the long-standing dull trend.

From Meme Coins to Diverse Layouts in NFTs

It is worth noting that the official terms from TRUMP state: If Trump is absent or the dinner is canceled, eligible Token holders will receive a limited edition NFT as compensation. This indicates that Trump's dinner is not only related to the TRUMP Token but also aims to increase attention for its NFT project.

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In fact, as early as during the campaign, Trump began to venture into the NFT space. On May 8 of this year, he hosted an NFT dinner at his private resort in Palm Beach, Florida, inviting buyers who purchased at least 47 "MugShot Edition" NFTs to attend. The series totals 100,000 NFTs, priced at $99 each, and purchasing 47 (for $4,653) grants the opportunity to dine with Trump. At that time, Trump expressed his support for cryptocurrency, promising to end America's hostility towards digital assets, in stark contrast to his previous critical stance.

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Trump first issued NFTs in December 2022, launching 45,000 digital cards featuring various images of him as a superhero, astronaut, and western sheriff. These NFTs are based on the Polygon network, with a standard version priced at $99. Customers purchasing 45 cards could receive an NFT dinner ticket. At that time, all NFTs sold out in about 12 hours. In March 2023, as Trump was indicted in Manhattan, NFT prices surged, with the highest selling for nearly $1,700.

In April 2023, the Trump team launched the second series of digital trading cards, maintaining a price of $99 each, and sold out within 5 hours, generating revenue of $4.6 million.

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Conclusion

Although it remains to be seen how much profit this NFT event can bring to Trump, it is clear that he is simultaneously operating two business lines: TRUMP Token and NFTs. Whether these projects can maintain their popularity in the long term is not important; the price surge and media exposure in the short term have already achieved the expected effect.