Introduction: The Rise of Political Memecoins
Memecoins have evolved from internet jokes to real investment assets—and now, political branding tools. The latest example? A memecoin associated with former U.S. President Donald Trump, simply called $TRUMP, which recently experienced a dramatic surge after a highly publicized announcement. But behind the flashy headlines lies a calculated strategy rooted in trading volume and fee collection—not price appreciation.
The Gala Dinner That Sparked a Frenzy
On April 24, a post on the official TRUMP coin website revealed an exclusive opportunity: the top 220 holders of the token would be invited to a private gala dinner with Donald Trump himself, scheduled for May 22.
“At this intimate private dinner, hear first-hand President Trump talk about the future of crypto,” the website reads.
The announcement triggered a buying frenzy. Within an hour, the token price skyrocketed by nearly 60%, as traders rushed in—either for a shot at dinner with the former president or in hopes of capitalizing on the volatility.
How the TRUMP Coin Works: Liquidity Pools and Market Making
To understand the mechanics behind this memecoin, it’s essential to look past price charts and into the infrastructure supporting the token’s liquidity.
Two entities—CIC Digital LLC and Fight Fight Fight LLC—own a staggering 80% of the TRUMP coin supply. When the token launched in January, 10% of the supply was funneled into a liquidity pool via the decentralized exchange Meteora. This pool enables seamless trading and ensures users can buy and sell without significant slippage.
In exchange for providing liquidity and executing trades (a process known as market making), these Trump-affiliated entities collect a fee per transaction, which dynamically ranges between 0.1% to 10%, depending on trading demand—similar to surge pricing on platforms like Uber.
Who Really Profits: CIC Digital and Fight Fight Fight LLC
According to blockchain analytics firm Nansen, over $1.6 million in transaction fees were collected from the TRUMP coin’s liquidity pool in just 24 hours following the gala announcement. A vast majority of that profit reportedly went to CIC Digital and Fight Fight Fight LLC as the primary liquidity contributors.
While the price pump grabbed headlines, the real windfall came from volume—not price. As long as people are buying and selling, these organizations earn on every trade.
Fees Over Price: The Market Making Strategy
Unlike typical investors who rely on coin appreciation, entities like CIC Digital and Fight Fight Fight focus on maximizing trading activity. The greater the volatility and hype, the more transactions—and the higher the cumulative fees.
“If you have a coin and you control the market making and the fees generated, what you care about is volume and price movement, not price itself,” explains Nathan van der Heyden, Head of Business Development at Aragon.
This strategy allows the organizations to sidestep the reputational risk associated with “dumping” coins while still capitalizing on trading enthusiasm.
Optics vs. Reality: Selling Coins vs. Generating Fees
Although CIC Digital and Fight Fight Fight hold the majority of TRUMP coins, they are currently restricted from selling most of them due to a combination of vesting contracts (limiting access for three years) and the public relations risk of being seen as cashing out.
Why risk public backlash when you can quietly earn millions in transaction fees?
The playbook here is subtle but effective—fuel the hype, drive the volume, and profit from the churn without ever touching the core stash of coins.
What This Means for Crypto Traders and Investors
For everyday traders and crypto enthusiasts, this event is more than a headline. It’s a lesson in market dynamics. Memecoins are often speculative, but the infrastructure behind them—including liquidity pools, automated market makers (AMMs), and fee structures—can reveal who the real winners are.
Before diving into any crypto asset, it’s worth asking:
Who controls the liquidity? Who profits from the trades?
Why Understanding Market Mechanics Matters – A Trenzest Perspective
At Trenzest, we aim to demystify the ever-evolving world of crypto, AI, and digital marketing for entrepreneurs and tech-savvy professionals. Stories like the TRUMP coin frenzy underscore the importance of education over speculation.
Whether you’re managing an investment portfolio or launching your own tokenized asset, understanding market incentives and infrastructure is crucial.
Conclusion: Hype, Profit, and the Power of Narrative
The TRUMP coin saga isn’t just about politics or profit—it’s a reflection of how narrative and mechanics collide in the crypto space. While the public focuses on price swings and celebrity endorsements, the real action often happens behind the scenes, where liquidity providers and market makers quietly collect their fees.
As digital currencies become more mainstream, stories like these serve as a reminder:
Understand the game before you play it.
