Trump Dinner: Sincere Invitation or Clever Marketing?

The "TRUMP DINNER" hosted by Trump is scheduled to take place on May 22 in Washington. The event will invite the first 220 token holders to attend, with the top 25 also enjoying a private VIP reception with Trump, followed by a visit to the White House the next day. Trump will attend as a guest and will not be participating in fundraising activities.

This news evokes memories of the recent $300 million token unlocking event: on April 18, 40 million tokens were unlocked, worth about $300 million, accounting for 20% of the circulating supply. This timing inevitably raises speculation: is it a sincere thank-you banquet, or is it a "Hegemony Feast" with ulterior motives?

After the announcement of the dinner news, the token price soared, reaching a high of $14.37. As of the time of publication, the quote is $12.37, an increase of over 33%.

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Market reaction is swift

Data shows that after the announcement, an investor spent 5 million dollars to purchase 407,467 tokens. Subsequently, this investor sold all holdings for a total of 5.73 million dollars within just 30 minutes, making a profit of 731,800 dollars.

Another long-term liquidity provider withdrew liquidity from two wallets that morning, obtaining 211,977 tokens (worth $2.76 million) and 18,376 SOL (also worth $2.76 million). Both wallets are now among the top 220 holders, with a chance to receive a dinner invitation. The investor purchased 332,424 tokens at a price of $2.41 on the day of listing (worth $802,000) and provided liquidity. At the peak price, these tokens were valued at over $24 million.

However, not all investors are so lucky. Analysis indicates that one investor liquidated their position about 20 hours before the positive news was released, only making a profit of $483,000. Had they held their position until after the news was released, their theoretical profit could have reached $4.28 million.

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The outlook for tokens is worrying

From a long-term performance perspective, the token's performance has been disappointing. After surging to over $75 on the day of its listing, its gains quickly fell back as investors noticed the token's high concentration and short exercise period. After its launch on January 17, its market cap briefly reached about $15 billion, but by January 20, it plummeted by more than 50%. Considering that 80% of the supply was allocated to founders and entities controlled by Trump, the current market cap of $2.6 billion is difficult to justify.

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Although Trump's actions have boosted short-term trading volumes, the substantial fluctuations in token prices are difficult to sustain based solely on a dinner event. The current surge is the result of market speculation and Trump's "sentiment marketing" working together. In the long run, unless concerns about token unlocks can be alleviated, it will be hard to reverse the ongoing sluggish trend.

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NFT Draws Attention Again

The official terms state: Trump may be absent from the dinner, and if the event is canceled or he fails to attend, eligible token holders will receive a limited edition NFT as compensation.

This arrangement not only promoted the tokens but also brought the Trump-themed NFTs back into the spotlight.

In fact, Trump has long tried to promote the NFT market. On May 8, he hosted an NFT dinner in Florida, inviting buyers who purchased at least 47 "MugShot Edition" NFTs. The series consists of 100,000 pieces, each priced at $99, and buying 47 pieces gives the opportunity to have dinner with Trump. At that time, Trump expressed support for cryptocurrency and promised to change the United States' hostile stance toward digital currencies, which is in stark contrast to his previous critical position.

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Trump's issuance of NFTs can be traced back to December 2022, when 45,000 cards were released, featuring him as a superhero, astronaut, and other personas. These NFTs were minted on Polygon, with the standard edition cards priced at $99. Purchasing 45 cards would earn a ticket to an NFT dinner. At that time, all NFTs sold out within 12 hours. In March 2023, when Trump was indicted, the price of NFTs surged, reaching nearly $1,700 at its peak.

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In April 2023, the Trump team launched the second series of digital trading cards, maintaining a price of $99 each, which sold out within 5 hours, generating $4.6 million in revenue.

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Conclusion

Although the profits from this NFT are not yet known, Trump is clearly operating both token and NFT lines simultaneously. Whether they can continue to appreciate in value is not important; the short-term price increase and media attention have already achieved the desired effect.