coindesk.com
The surge of the $TRUMP token, which is not directly linked to Donald Trump, has created a new class of millionaires in the PoliFi crypto sector.
The Trump campaign announced it would begin to accept crypto donations, including bitcoin ($BTC), ether ($ETH), and meme coins dogecoin ($DOGE) and shiba inu ($SHIB).
The young PoliFi crypto sector, a frontier where politics, finance, and cryptocurrency converge, has minted a new class of millionaires as a token themed after Donald Trump surged in the past few weeks, analysis by on-chain data provider Nansen shows.
While the issuance of the $TRUMP token has nothing to do with the former U.S. President Donald Trump directly, traders are using the tokens as a speculative bet on his ongoing presidential campaign.
In the past two weeks, the Trump MAGA ($TRUMP) token is up nearly 75%, according to CoinGecko data. It surged 14% on Tuesday as the Trump campaign said it would begin to accept crypto donations, including bitcoin ($BTC), ether ($ETH), and meme coins dogecoin ($DOGE) and shiba inu ($SHIB).
From all this, some holders of the MAGA meme coin – the first experiment in a new category of tokens called PoliFi, which has a collective market cap of $749 million – have seen returns of over 1,600%.
One such address is sitting on over $5.5 million worth of the token.
Several addresses purchased low six-figures in $TRUMP tokens and are now sitting on unrealized gains of over $1 million. They are gradually trimming their holdings but not selling in a manner that could cause a sudden price dump. As such, these sales were made before Tuesday’s campaign donation announcement.
However, recent buyers of the $TRUMP token are posting a poor return on investment and have a low overall win rate, the data showed.
Meanwhile, the value of $TRUMP holdings sent to a wallet linked to the actual Donald Trump has risen to nearly $5 million.
A wallet supposedly linked to Trump received $7,100 of $TRUMP from the meme coin’s developers between August and October 2023.
Sending tokens to a wallet linked to popular entities is sometimes used as a marketing strategy by meme coin makers, as they can attract eyeballs – and galvanize investor interest.