On Wednesday, the team behind the official Donald Trump Memecoin sparked a commercial frenzy after announced that investors who held the largest amount of crypto corner in the coming weeks are invited to a gala dinner attended by the American president.
“During this private private dinner, listen to the first -hand president Trump talk about the future of the crypto (sic),” reads the list on the Trump Coin website. “The most exclusive invitation in the world. Only for the $ 220 top 220 Trump even Conors.” Dinner should take place on May 22.
The merchants rushed to buy the Trump room, some trying to come up against the list of invitations and others hoping simply to take advantage, according to the analysis of the Nansen blockchain analysis company. In less than an hour, its price had jumped almost 60%.
However, for the two organizations that have 80% of the part of the part – CIC Digital LLC and Fight Fight Fight LLC, ramifications of a conglomerate belonging to Trump – the market price was a secondary concern. In the immediate term, these companies mainly benefit from the frequency to which people negotiate it.
When Trump announced its same in January, the two organizations channeled 10% of the total supply in a so -called liquidity pool, the aim of which is to guarantee that the asset can be exchanged freely. In exchange for the supply of liquidity and the promise to buy and sell the part as transactions arise – known as the market manufacturing – organizations affiliated to Trump ordered costs. These costs vary from 0.1 to 10% of each profession depending on the current level of demand. Think of it as prices on an application on an application.
“If you have a part and you control the manufacturing of the market and the costs generated, what interests you is the movement of volume and prices, not the price itself,” explains Nathan Van der Heyden, manager of commercial development at Crypto Company Aragon.
Previously, entities affiliated with Trump would have won tens of millions of dollars in negotiation costs related to the Trump room. Within 24 hours of dinner, $ 1.6 million in fees were collected by contributors to the Trump Liquidity Pool On Meteora, the exchange by which the token was initially launched. Most of this money will be accumulated by CIC Digital and Fight Fight Fight as the largest contributors to the swimming pool, based on previous reports.
On paper, organizations affiliated with Trump are also to be won in any appreciation in Trump’s prices, because they are by far the biggest holders. But in practice, they are prevented from selling their hiding place, partly by a mechanism which limits access to their assets for a period of three years, and partly by the prospect of a reaction resulting from the inevitable decline in the price caused by significant sales.
“The optics of taking advantage of the sale of your own room is terrible, while taking advantage of the manufacturing of the market is opaque enough to protect your reputation,” explains Van Der Heyden.
