A recent report from blockchain analytics firm Chainalysis revealed that just 40 wallets control 94% of the total supply of TRUMP and MELANIA meme tokens.
The report, which comes after hype around the two meme coins, highlights the extreme concentration of holdings among a small group of whales.
Retail Dominates TRUMP and MELANIA, but Whales Hold Power
This revelation comes amid the explosive rise of the tokens, which made waves around President Donald Trump’s inauguration. Chainalysis noted that most wallets holding TRUMP are retail buyers with modest investments. However, approximately 50 wallets have realized profits exceeding $10 million each.
The report shows that most TRUMP and MELANIA holders are small-scale investors. Over 80% hold less than $1,000 worth of tokens on Solana. Many of these investors are new entrants in the crypto market, with 50% having never purchased a Solana altcoin before. Furthermore, nearly half created their wallets on the same day they bought the tokens.
Despite this retail popularity, a few large holders heavily influence the market. Chainalysis found that four wallets received the majority of TRUMP tokens shortly after the 1 billion TRUMP tokens were minted, initially to provide liquidity on exchanges.
“…most wallets that hold TRUMP and/or MELANIA hold less than $100 worth, suggesting retail buying activity. But there are also several wallets holding upwards of $100 million,” Chainalysis observed.
These findings align with a separate report, which indicated that over 40% of TRUMP token holders are first-time crypto investors. This highlights the place of retail in the market. The influx of new participants raises concerns about long-term sustainability. However, the concentration of holdings among whales is even more concerning.
Both meme coins launched with considerable fanfare, drawing inspiration from US President Trump and First Lady Melania. TRUMP saw an impressive 180% rally after its debut, outperforming many established cryptocurrencies.
MELANIA also captured attention, at times outpacing TRUMP’s price performance. The coin experienced sharp value spikes, fueled by a growing number of retail buyers.
The popularity of these tokens has significantly impacted the Solana blockchain, driving its transaction fees and revenue to record highs. However, this surge came at a cost to other sectors, such as AI agent tokens. For example, the Virtuals Protocol reported declines in both revenue and adoption as investor interest shifted toward meme coins.
Additionally, the rise of TRUMP and MELANIA tokens has raised awareness of tax implications. Investors should note that gains from meme coins are often subject to capital gains tax in many jurisdictions.
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