The upcoming week is set to witness a significant event for Trump Coin as a major token unlock could lead to market volatility.
What Does the Unlock Event Entail?
In just over four days, 90 million Trump Coin tokens will be unlocked, accounting for 45% of the total supply. Tokens valued at $6.85 million will enter circulation incrementally. This marks a departure from the previous period of limited supply.
Impact on Trump Coin's Circulation
By August, Trump Coin's circulation is expected to reach 320 million, surpassing 341 million in September and 363 million by October. By April 2028, the total supply is projected to reach one billion tokens. The shift from scarcity might impact price stability.
Market Dynamics and Liquidity
Given the rise in short positions in futures trading, with open interest nearing $448 million, potential liquidation events may arise. Current pricing is below previous highs, and despite recent recoveries, the token faces resistance.
The forthcoming unlock event for Trump Coin may significantly influence both current stakeholders and potential investors, creating opportunities and risks in the cryptocurrency market.
