Donald Trump, Republican candidate and former president, finds himself at the center of another lucrative intrigue – not real estate or business, but crypto world. His charismatic virality makes him a leading figure in PoliFi meme pieces. With more than half a million TRUMPs (MAGA) tokens in its digital wallet, according to Arkham, the question arises: how much are its assets worth today?
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MAGA, launched in August 2023, was the first project to award tokens to Trump’s crypto wallet as a successful marketing program. On August 16, 2023, MAGA owners sent approximately 470,000 MAGA tokens to Trump’s portfolio, followed by an additional 110,000 tokens on October 9, 2023. Trump received a total of approximately 580,000 MAGA tokens, representing approximately 1.2% of MAGA’s 46.5 million total tokens. At the time, the tokens were only worth a few thousand dollars, with MAGA’s price less than $0.01.
The MAGA token remained inactive for months after its August launch, only reaching a market cap of $2.5 million in 2023. MAGA began to move, catalyzed by positive market sentiment in January 2024, going from $0.18 to $2.26 (over 1,100% increase) in just 14 days. The next increase occurred on March 3, 2024, at $11.54. A consolidation followed that led MAGA to surge to $17.52 on May 31, 2024 – the current all-time high price. Subsequently, MAGA saw a strong sell-off to $5.55 in mid-June and is currently around $7.13.
Trump’s 580,000 MAGA tokens have an estimated value of $4.2 million at the current price of $7.13. Trump received his tokens as a gift when MAGA was below $0.01, meaning his MAGA holdings have increased by over 71,000% since then.
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However, the estimated value of Trump’s holdings is far from real after accounting for slippage (the difference between the executed trade price and the expected trade price). Liquidity (the ease with which an asset can be converted into cash without affecting its market price) and volatility (rapid changes in price in a short time) are the main causes of slippage.
When executing a trade, volatility is much less of a concern due to the wide distribution of MAGA tokens and its large market capitalization – over $350 million. The main factor in MAGA’s slippage is low liquidity, as there would not be enough buy orders at the current price to fill Trump’s entire holdings. If Trump sold all 580,000 tokens, his sell order would consume all available buy orders, driving the overall price down. If Trump sold all his assets Uniswap, he would expect to receive only about $2 million. Trump’s profit would be more than 50% below the nominal valuation of $4.2 million.
This highlights how liquidity plays a critical role in cryptocurrency walk. No one can escape the fundamentals; High-profile figures like Trump must navigate complex market dynamics. This scenario emphasizes an important lesson for investors: face value does not always translate into real cash.
Like holding any cryptocurrency, holding meme coins like MAGA comes with its own set of risks. Meme Coins can be particularly volatile, creating a landscape in which potential profits quickly turn into substantial losses. Making informed decisions and understanding the risks associated with your investment is essential to maneuvering in an unpredictable market.
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This item Here’s How Much Profit Donald Trump Would Make If He Sold His TRUMP Memecoin Today originally appeared on Benzinga.com
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