Trump-Backed Meme Coin Faces Sharp Decline: Treasury Fund Plan Seeks Revival

The official cryptocurrency tied to former U.S. President Donald Trump, known as the TRUMP token, is grappling with a significant fall in its market value. In response, the issuing entity, Fight Fight Fight, spearheaded by Trump ally and entrepreneur Bill Zanker, is working to establish a $200 million treasury fund in hopes of stabilizing the token's collapsing worth.

A report by Cointelegraph dated October 8 revealed that this fundraising initiative could potentially expand, with targets reaching as high as $1 billion. However, being in its preliminary stages, the initiative’s ultimate success remains uncertain.

The urgency behind this move stems from the TRUMP token's drastic price drop, plummeting from an all-time high of $75 in January to a current price of approximately $7.58—a nearly 90% decrease. Over the last month alone, the token has lost over 10% of its value, according to CoinMarketCap data.

TRUMP Token Data Reveals Supply Concentration

On-chain analytics provided by blockchain firm Messari shed light on the significant supply centralization in the TRUMP ecosystem. Currently, only 35% of the token’s total supply is in circulation, leading to a circulating market capitalization of $1.5 billion.

The remaining 65%—equivalent to about 800 million tokens—are under the control of Trump-affiliated organizations and subject to vesting schedules that limit their immediate availability on the market. This restricted liquidity likely contributes to the token’s volatility and broader investor concerns.

Controversy Surrounding Trump’s Links to Meme Coin Ventures

The association between Trump and the TRUMP token has not been without scrutiny. Back in May, Trump attended a luxurious private dinner organized by Fight Fight Fight, which brought together major meme coin investors. The event, reportedly attended by 220 individuals, including TRON (TRX) founder Justin Sun, ignited public backlash.

Protestors gathered outside the venue, accusing the event of engaging in “political profiteering” and fostering “digital asset corruption.” Adding fuel to the fire, 35 members of the U.S. House of Representatives subsequently sent a formal letter to the Department of Justice’s Office of Government Ethics. The letter called for an investigation into whether the dinner’s activities violated federal anti-bribery laws or the Constitution’s emoluments clause.

Trump further raised questions of legality by giving a speech behind a podium featuring the presidential seal. Legal experts have pointed out that such an act might contravene federal law, sparking another layer of skepticism and criticism.

Treasury Fundraising Trends in Trump-Related Digital Projects

While Fight Fight Fight’s $200 million treasury initiative is still conceptual, other Trump-affiliated cryptocurrency projects have already begun rolling out financial mechanisms aimed at market stabilization and strategic growth.

For instance, in August, ALT5 Sigma launched an initiative to issue 200 million shares priced at $7.50 per share, ultimately raising $1.5 billion to establish the World Liberty Financial (WLFI) treasury fund.

Moreover, WLFI token holders overwhelmingly voted—by a margin of 99%—in favor of a token burn strategy. Under this plan, WLFI tokens will be repurchased using fees generated by the project’s liquidity pools. These repurchased tokens will then be permanently removed from supply, a move designed to increase scarcity and potentially bolster token value over time.

Expert Insights: The Intersection of Politics and Cryptocurrency

Industry analysts believe that Trump-linked digital asset initiatives serve dual purposes. On one hand, they aim to strengthen cryptocurrency market positioning. On the other, they appear intended to extend Trump’s political influence, using digital assets as a tool for engagement and fundraising.

These projects illustrate the growing convergence of politics and financial innovation within the crypto sphere, emphasizing the multifaceted roles digital assets can play in both commercial and ideological arenas. Moving forward, the interplay between regulatory frameworks and market dynamics will be pivotal in determining the success and sustainability of such politically affiliated cryptocurrency ventures.