Following the launch of the first memecoin created by a president-elect, Official Trump (TRUMP), which occurred on the night of January 17, users expressed concern about the distribution of this token. 

As can be seen on the Get Trump Memes site, of the total number of TRUMPs that will exist, only 10% will be destined for the public offer, which users and investors will be able to access. 

TRUMP will have only 10% of his circulating stock on public offer. Source: Get Trump Memes.

The total supply of the Donald Trump memecoin will be 1 billion tokens, while the initial circulation of 200 million tokens, representing 20% ​​of the total supply, were put into circulation immediately. The other 10% that are not in the public distribution were given to exchanges to provide liquidity. 

The remaining 80% of TRUMP has not been released yet, but will be held by the creators of this memecoin and the CIC Digital Group entity. These tokens are not in circulation and are subject to an unlocking plan. 

While there has been no official announcement connecting CIC Digital Group to Donald Trump, this company has been mentioned in contexts related to Trump, specifically in the management and distribution of digital tokens, NFTs and projects linked to the image of the president-elect. 

How will Donald Trump's memecoin be distributed?

The TRUMP token distribution is structured in such a way that 10% of the total supply is allocated to public distribution and another 10% to liquidity, being fully released from the start. The remaining 80% is under the control of the project creators and CIC Digital, distributed across six different pools, each with an allocation ranging from 1% to 36%.  

At the time of the memecoin 's launch, these groups will not be able to sell their holdings until after a certain time. This is because they have lockup periods, which are time intervals during which certain tokens or shares cannot be sold.

After 3 months of issuance, these tokens are released daily over the course of 24 months, starting with an initial unlock of 10% to 25% depending on the pool.

This linear unlocking strategy would seek to mitigate immediate selling pressure to the market, allowing for a controlled release of tokens. However, the centralization of 80% of the supply in the hands of the creators raises questions within the community about fairness and potential market manipulation. 

In addition, the distribution of the TRUMP token shows a large disparity between its current market cap of nearly $5 billion and its fully diluted valuation (FDV) of over $22 billion. This difference suggests that there could be significant selling pressure in the coming years, as many tokens are not yet in circulation due to temporary lockups. 

Some of these lockups have a waiting period of just three months, which will allow the team and insiders to begin selling their tokens on a daily basis over the next two years. This gradual release of tokens could flood the market, potentially driving down the token price if demand does not match the new supply available. 

Regarding this distribution, a user of the X platform, under the account name “Coffeezilla” stated that “this is a wild distribution for a memecoin.” 

TRUMP's distribution left the community dissatisfied

This distribution implied a pessimistic framework in participants of the cryptocurrency ecosystem regarding the intentions behind the creators of this project. 

In this regard, Conor Grogan, an executive at the American exchange Coinbase, stated in a post on X that the creator of TRUMP deposited 80% of the currency in circulation in a multi-signature wallet. 

Checking the Solana network explorer, Sol Scan, it is evident that there is a wallet that stores 80% of the TRUMP currency in circulation. 

While a multisig wallet may be a security measure, having 80% of the supply in a single address suggests a high centralization of control over the token, which contrasts with the principle of decentralization sought in cryptocurrencies. 

By controlling the majority of the supply, creators can influence the market price, as they release tokens in the future and can potentially manipulate the supply. 

This can also raise trust concerns, as if the intent is unclear, it could be seen as a scheme to benefit creators or a plan to execute a “rug pull,” leaving investors with worthless tokens. 

Conor added in his post that “Trump increased his net worth by 50%.” Then, in another post, he explained that the US president-elect had already sold $500 million worth of TRUMP. 

More users are negatively suspicious of TRUMP's 10% public offer

The X account called “Henao Hodl” published that, given the distribution mentioned above, when the token reaches a certain price, Donald Trump or companies would use the 80% they would have in their possession to sell their holdings and “leave others poor.” 

Thus, through these sales, those behind the TRUMP project could benefit. Along the same lines, the user under the name “Art Candee” opined that “these people are definitely trying to get rich at the expense of the buyers.” 

Ultimately, investor Peter Schiff tongue-in-cheek suggested the creation of a TRUMP “strategic reserve.” This is a reference to the president-elect’s proposed bitcoin strategic reserve, implying that TRUMP could have similar strategic or economic value, which is a stretch given the speculative nature of memecoins.

Schiff continued in sarcastic mode and, in a post on X, added two proposals that would offer a TRUMP-like distribution of capital.  

First, he proposed that all retirement accounts should require a 10% allocation to TRUMP to “qualify.” Second, he called for imposing 100% tariffs on nations that do not allocate 10% of their foreign exchange reserves to TRUMP.  

Thus, while the memecoin launched by Donald Trump rises more than 200% in its price in 24 hours, the community discusses the intentions behind this project, suspecting that in the future the creators could take advantage of TRUMP's bullish climb to sell their holdings.