Following the recent guilty verdict against former president Donald Trump, his supporters have been inundating his crypto wallet with meme coins and donations. This surge has driven the value of his holdings past $30 million, according to blockchain analytics firm Arkham Intelligence.
Supporters Flood Donald Trump's Wallet with Trog Coins
In just the last few days, a wallet linked to Trump by Arkham Intelligence has seen its Trog (TROG) meme coin holdings soar to $19.5 million. This boost is partly due to the efforts of the team behind Trog, short for Trump Frog. The meme coin's website proudly declares it as "the meme coin that's here to make crypto great again."
The TROG team distributed half of the coin's 420,690,000 supply to Trump, establishing him as the dominant holder by a wide margin. Over the last 24 hours, the price of TROG has increased by 190%, according to DexTools. However, if Trump decided to sell his TROG holdings—assuming he knows about them—the price would probably collapse due to the coin's limited liquidity.
What could be the impact of this on the overall Crypto Market?
The flow of meme coins into Donald Trump's crypto wallet, and the subsequent shoot in the value of TROG, could mean a lot for the overall crypto market. First, it proves how meme coins are volatile, and in that market sentiment can influence the prices to highs. This event underlines the speculative nature of the cryptocurrency ecosystem, which can bring more attention and participation from retail investors looking for quick gains. However, this conversely increases the risk of market manipulation and flash crashes, especially in the assets with low liquidity.
This would lead to a crashing price of TROG, but it would affect not only TROG; it will also shake confidence in other meme coins' investors. This kind of massive sell-off would indeed set an example of the riskiness that comes with the holding of a significant amount of low-liquidity assets and could push many towards more stable and established cryptocurrencies. Plus, regulators might take a closer look as they get concerned with the prospects for market manipulation and the bigger picture for financial stability. Generally, the short-term effect will be a surge in meme coin interest, but the long-term impacts will bring about more cautious and regulated crypto trading environments.
