The cryptocurrency market is bracing for a major event next week as former US President Donald Trump’s official memecoin is set to release a staggering $321 million worth of vested tokens. The unlock, scheduled for April 18, could trigger further price drops, adding to the token’s already steep decline since its peak in January.
$321M Token Unlock on the Horizon
According to data from token vesting tracker Tokenomist, 40 million Trump tokens will be released in a cliff unlock — meaning all tokens will become available simultaneously. Currently trading at approximately $8, the release represents a significant influx of supply into the market.
Token vesting is a strategy used to encourage long-term holding by gradually granting investors access to their tokens. A cliff unlock, however, involves a large amount of tokens being released at once, which can lead to intense selling pressure and falling prices.
Value Plunges 89% Since Peak
The Trump memecoin has seen a dramatic fall from its all-time high of $73.43, reached on January 19 — just a day before Trump’s inauguration. At its current value of $8, the token has dropped by 89%, wiping out massive value for retail investors.
While the project’s creators are believed to have gained over $350 million in profits, blockchain analytics firm Chainalysis estimates that at least 813,000 wallets have incurred losses totalling roughly $2 billion. The upcoming token unlock could exacerbate these losses further, especially if investors rush to exit positions.
Largest Unlock of the Week
This event marks the largest single token unlock scheduled between April 14 and 20. The Trump token alone accounts for 61% of the $519 million in total tokens set to be released across several crypto projects next week.
Among the other notable unlocks is Fasttoken (FTN), which is releasing 20 million tokens valued at $80 million, allocated to its team and founders. Arbitrum is set to unlock ARB tokens worth over $27 million, while Starknet will release 127 million STRK tokens worth around $16 million.
Historical Parallels Suggest Price Risk
Massive token unlocks have historically led to steep declines in token prices. A prime example is Arbitrum’s unlock in March 2024, which released $2.32 billion in vested tokens. Its token, then worth $1.89, has since plunged to $0.29 — an 84% drop.
With Trump’s memecoin facing a similar scenario, market analysts are closely watching how the price will react in the days following the unlock. Given the token’s previous volatility and recent performance, concerns of a fresh wave of sell-offs remain high.
