#Trump Token Inflation Under Control#

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Overview

While the tokenomics of the Trump token have serious issues, the current token inflation pressure remains manageable in the next three months. Only 20% of the total tokens are currently in circulation, with the remaining 80% to be released gradually over 36 months. This means that there will not be a massive influx of new tokens into the market in the short term, leading to significant price fluctuations. Although the token's market cap has fallen from its peak, it has recently seen a degree of appreciation, which may be linked to market expectations of manageable inflation pressure in the next three months.

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Analysis

While the tokenomics of Trump Coin present significant issues, the current token inflation pressure is manageable for the next three months. David Zimmerman, DeFi Analyst at K33 Research, points out that only 20% of the total Trump Coin supply is currently in circulation, with half being used for liquidity and the other half being offered to the public. The remaining 80% of the tokens will be released gradually over 36 months, with these locked tokens being allocated to six entities, including “Creators” and “CIC Digital 1-6.” The first unlock will occur in three months, involving the tokens held by “Creators” and “CIC Digital 1.” Therefore, no new token supply will enter the market in the next three months, effectively controlling token inflation pressure. Despite the market capitalization of Trump Coin falling from its peak of $14.5 billion, it still surged over 12% in the past day, trading above $42, indicating a degree of confidence in the token within the short term.

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