Trump Dinner: Sincere Hospitality or Something Else?

Recently, it has been reported that Trump will host the "TRUMP DINNER" banquet in Washington on May 22. The event plans to invite the first 220 token holders to participate, with the top 25 also enjoying a private VIP reception with Trump and a visit to the White House the next day. Trump will attend as a guest and will not engage in fundraising activities.

This news reminds one of the recent token unlocking event: On April 18, 40 million tokens worth approximately 300 million dollars were unlocked, accounting for 20% of the circulating supply. This inevitably raises the question: Is the banquet held right after the token unlocking a gesture of gratitude, or is there a hidden agenda?

After the announcement of the dinner news, the prices of related tokens quickly surged, reaching a high of $14.37. As of the time of writing, the quote is $12.37, an increase of over 33%.

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Investor Reaction

After the news was released, the market reacted quickly. According to monitoring, an investor spent 5 million USDC to purchase 407,467 tokens at a price of $12.27. Subsequently, the investor sold all holdings for a total price of $5.73 million within half an hour, making a profit of $731,800.

Another long-term liquidity provider withdrew liquidity that morning, receiving 211,977 tokens (worth $2.76 million) and 18,376 SOL (also worth $2.76 million). Both wallets are now among the top 220 holders, with a chance to receive a dinner invitation. The investor had purchased 332,424 tokens at a price of $2.41 on the day of listing (worth $802,000) and provided liquidity. At the price peak, these tokens were worth over $24 million.

However, not all investors are so lucky. Analysis shows that one investor liquidated their position about 20 hours before the positive news was released, earning only $483,000. If they had held on until after the news was released, their theoretical profit could have reached $4.28 million.

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Token Outlook Analysis

From a long-term performance perspective, the token has performed poorly. Although it peaked above $75 on the day of its listing, the increase quickly reversed as investors noticed the high concentration of the token and the short exercise period. After its launch on January 17, the token's market value reached about $15 billion, but by January 20, it had plummeted by over 50%. Considering that 80% of the supply was allocated to founders and entities controlled by Trump, the current market value of $2.6 billion is difficult to justify.

Although this event has stimulated trading volume in the short term, it is difficult for the long-term trend of token prices to undergo substantial changes due to a single dinner. The current surge is the result of a combination of market speculation and special sentiments. In the long run, unless concerns about token unlocking can be alleviated, it will be difficult to reverse its continued sluggish trend.

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NFT Trends

It is worth noting that the official terms state: if the dinner is canceled or Trump fails to attend, eligible token holders will receive a limited edition NFT as a substitute. This means that the event will not only affect the tokens but may also bring new attention to Trump-themed NFTs.

In fact, Trump has long been involved in the NFT space. On May 8, 2024, he hosted an NFT dinner in Florida, inviting buyers who purchased at least 47 "Trump Head" NFTs. This series totals 100,000 pieces, priced at $99 each, and purchasing 47 pieces ($4,653) grants the opportunity to dine with Trump.

Trump's NFT issuance can be traced back to December 2022, when 45,000 cards were issued, featuring images of him playing roles such as a superhero and an astronaut. These NFTs sold out within 12 hours. In March 2023, when Trump was indicted, the price of the NFTs surged to nearly $1,700. In April 2023, Trump's team launched a second series, which sold out in 5 hours, generating $4.6 million.

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Summary

Whether it's tokens or NFTs, Trump seems to be adept at leveraging his influence to create short-term buzz and profits. However, whether these projects can maintain their appeal in the long run remains to be seen. Currently, Trump is using both tokens and NFTs, which has indeed sparked market discussions and price fluctuations in the short term.