A whale profited $3.7 million from selling $TRUMP tokens as memecoin values sharply declined amid market volatility.
A major player in the memecoin market has capitalized on the downturn of the $TRUMP token, securing a hefty $3.7 million profit. This savvy investor, often referred to as a whale, managed to sell their holdings just in time as the memecoin began its steep decline. The whale, identified by the wallet address “0x52C0,” offloaded over 171,000 $TRUMP tokens in exchange for 414 Ether (ETH), valued at approximately $1.44 million within the last 24 hours. This transaction has resulted in an impressive return of over 1,428% on their initial investment.
Whale Strategy and Portfolio Insights
The whale’s strategic move was highlighted by Lookonchain in a June 18 post, revealing that the sales were executed at the $8.38 price point. Despite the significant sell-off, the whale still retains 28% of their portfolio in $TRUMP tokens, which are currently worth $372,000. The largest portion of their portfolio is now dominated by BasedAI (BASEDAI) tokens, valued at $921,000 and representing over 71% of their holdings.
At its zenith on June 2, the whale’s portfolio reached a valuation of $7.53 million, as per CoinStats. This peak valuation underscores the whale’s adeptness in navigating the volatile memecoin market.
TRUMP Token’s Downward Spiral
The decline of the $TRUMP token coincided with the whale’s profit-taking activities. The token’s value plummeted over 30% within 24 hours, reaching $7.88 by 9:00 am UTC. On a weekly basis, the token has seen a reduction of over 37%, according to data from CoinMarketCap.
The fall in the $TRUMP token’s value comes from speculations about a new “official” token supposedly launched by Donald Trump’s team on the Solana blockchain. Pirate Wires posted on June 17 that Trump’s youngest son, Barron, was leading this initiative under the name TrumpCoin (DJT).
However, there has been no official confirmation from Trump’s team, and blockchain analysis firms like Bubblemaps remain skeptical about DJT’s association with the former president.
Marketwide Memecoin Sell-Off
The TRUMP token’s decline is part of a broader sell-off in the memecoin market. Prominent memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB) have also experienced significant losses, dropping 13% and 18% respectively. Other tokens such as Pepe (PEPE) and Solana-based Dogwifhat (WIF) have suffered similar fates, with PEPE down 13% and WIF plummeting over 20%, based on CoinMarketCap data.
Overall, the total market capitalization of memecoins has decreased by 9.4% to $46.6 billion in the last 24 hours, while trading volumes have surged by 79% to $6.25 billion. This indicates a heightened activity as investors react to the market downturn.
Other TRUMP token whales have also been quick to act amidst the declining market. The wallet “0x35D1” secured a $648,000 profit from selling their tokens, while the trader known as sighduck.eth achieved a remarkable gain of $1.88 million, translating to an over 1,500% return.