Analysis by Nansen reveals that early investors in the TRUMP token achieved returns of over 1,600% from this PoliFi token.
The emerging PoliFi sector, blending politics, finance, and cryptocurrency, has created a new group of millionaires. Recently, a token themed after Donald Trump has seen significant gains, according to on-chain data from Nansen.
Although the TRUMP token is not officially connected to former President Donald Trump, traders are using it to speculate on his ongoing presidential campaign. Over the past two weeks, the Trump MAGA (TRUMP) token has increased by nearly 75%, according to CoinGecko. It surged 14% on Tuesday after the Trump campaign announced it would accept cryptocurrency donations, including bitcoin (BTC), ether (ETH), and meme coins like dogecoin (DOGE) and shiba inu (SHIB).
Some holders of the MAGA meme coin, the first of a new category of tokens known as PoliFi, have seen returns of over 1,600%. One wallet alone holds over $5.5 million worth of the token.
Several addresses that initially invested low six-figure sums in TRUMP tokens now have unrealized gains exceeding $1 million. These holders are gradually selling their tokens to avoid a sudden price drop. Notably, these sales occurred before Tuesday’s campaign donation announcement.
However, recent TRUMP token buyers are seeing poor returns on investment, with a generally low win rate, as per the data. Meanwhile, the value of TRUMP tokens sent to a wallet linked to the actual Donald Trump has risen to nearly $5 million.
Between August and October 2023, a wallet reportedly linked to Trump received $7,100 worth of TRUMP from the meme coin’s developers. Sending tokens to wallets associated with well-known figures is sometimes used as a marketing tactic by meme coin creators to attract attention and spark investor interest.
