One crypto trader has bought 337,000 TRUMP tokens for 5.196 million USDC just a few days after selling off the tokens. The move has sparked speculations as to what could be the motive for the re-entry.
The whale, identified by the address 3kjP9L, was initially holding 630,000 TRUMP tokens that they bought in March for $5 million at an average price of $7.93. However, they chose to sell off the tokens on April 23, dumping everything for $5.48 million and making $483,000 in profits.
Unfortunately, the selloff turned out to be badly timed because the TRUMP project team announced 20 hours later that the top 220 holders of the memecoin would get an exclusive with the president. The announcement immediately sent TRUMP to over $14, a position from which the whale could have made $4.28 million in profits.
With the trader taking a new position, this time at an average price of $15.39, there are speculations about why he chose to re-enter the market. Blockchain analyst Ember CN, who shared the transaction, noted that it might be because of the missed profits.
He said:“Today, he re-entered the market at $15.39. It is hard to tell whether he thought TRUMP the price would continue to rise or was motivated by the missed profits.”
If the motivation is missed profits and the expectations that the price would rise further, the trader might need to be more patient this time around and hope for sustained momentum.
So far, TRUMP is down 4% in the last 24 hours and has fallen below $15, which means the trader now has unrealized losses. However, there is a chance that the token could rise further as demand remains strong based on trading volume. According to CoinMarketCap, the token has $2.96 billion in trading volume over the last 24 hours.
This is above the trading volume for other memecoins and other cryptocurrencies except for Bitcoin and Ethereum within that period, showing that interest remains high.
The whale is now in the list of top TRUMP holders
Meanwhile, another potential possibility is that the trader is acquiring the tokens so as to be a guest at the Trump exclusive dinner scheduled for May 22. If that is the case, the recent acquisition will be enough to make them one of the top holders of the memecoin.
According to the TRUMP leaderboard on the project page, the time-weighted TRUMP holdings of the top 25 holders vary between 942,601.9 tokens and 93,048 tokens. However, the holder ranked 220 only has 610.67 tokens presently, which means the whale would automatically make the list with their latest purchase.
However, TRUMP holders who want to participate have to register. There is no sign that the whale has registered, as the 3kjP9L address is not reflecting on the leaderboard.
Interestingly, the team is using the average TRUMP holdings between April 23 and May 12 to determine ranking. This means that holders who buy more tokens within this period can climb up the rankings. The top 25 are considered VIPs and will have an exclusive reception with the President before the dinner.
TRUMP team sees surge in fees from renewed interest
Meanwhile, the renewed interest in TRUMP is not just driving its prices; it is also generating significant fees for the project. According to Chainalysis data cited by CNBC, the project generated almost $900,000 in fees within two days of the announcement.
In fact, these trading fees remain one of the biggest revenue sources for the project, with cumulative fees since its launch in January now standing at $324.5 million.
Despite the interest and the massive fees going to insiders, the majority of those holding TRUMP are doing so at a loss, given that it is down 79.7% from its peak price.
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