The TRUMP meme coin: What we know so far

How it works: TRUMP is a token running on the Solana blockchain. Tokens are financial assets that rely on some blockchain to be tradable.

• Specifically, it's a meme coin, meaning it's a coin that represents an idea. It also appears to be a particular kind of meme coin, a celebrity coin, one that might unlock perks for the holder with Trump or the Trump world.
• Initial sales were made through a decentralized exchange and also an app called Moonshot, which allows users to buy meme coins with traditional payment methods, such as Apple Pay.
• Moonshot has shot up in popularity, sitting at number 8 in the App Store rankings as of Sunday afternoon. The app claims to have brought in 200,000 new crypto buyers since TRUMP launched.

Between the lines: While there's been a great deal of talk about the multi-billion dollar paper value of that giant war chest of TRUMP so far, there's a few reasons to be skeptical of that huge number.

• Those assets aren't liquid. More coins will be gradually made available to sell over the next three years. If they can't be sold, then there's no potential for cash there.
• Following the basic rules of supply and demand, the more TRUMP that hits the market, the more that should dilute the value of liquid tokens.
• Experienced traders tend to think more in terms of the market cap of tokens on the market rather than all the tokens in existence. The liquid market cap is more like $13 billion, based on Sunday's price in the mid-$60s.
• It's also normal for a new coin to see a lot of early enthusiasm, which fades away forever afterward. On the other hand, TRUMP has proven unusually adept at holding onto the world's attention.

By the numbers: According to Solscan, a site that lets users track tokens on the Solana blockchain, 801,000 wallets hold TRUMP already.

• That's a lot less than the 200 million wallets that hold bitcoin, but it's great for a meme coin that's less than a week old. By comparison, it's nearly as many wallets as hold BONK, a two-year old meme coin that's been quite popular on the same blockchain.
• It's also quickly been listed on popular cryptocurrency exchanges, according to CoinGecko's markets page.
• Coinbase, the largest exchange in the U.S., has notified users that it's considering listing it now.

Follow the money: It would be good to know more about who profits when TRUMP sells, but so far it seems like the simplest answer is the most likely: The Trump Organization.

• It has not responded to a request for comment from Axios.
• According to the website, TRUMP is offered by CIC Digital LLC, which it describes as an affiliate of the Trump Organization, as well as FIGHT FIGHT FIGHT LLC, Delaware corporation co-owned by CIC. They own the 80% of the supply that's not trading.
• CIC Digital has been the same organization behind things like Trump shoes, the Trump Bible and also the Trump NFTs, which seemed to have been the venture that ultimately brought him around on cryptocurrency.
• There's also the matter of his wife Melania's new meme coin, MELANIA, which dropped Sunday night and was quickly worth more than $5 billion.

Yes, but: Reserving 80% of the new supply for the team is an awful lot. It's usually more like 10% to 30%.

What we're watching: When and if the new President mentions the meme coin in his official capacity. If he were to do so during his inauguration, that would likely be an explosive moment for trading.

Bottom line: Trump's fans believed it made sense to stand by him through the scandals and the victories, because they thought his leadership would provide them with opportunities down the road.

• But now holders of TRUMP have a direct financial incentive to amplify his message and defend his presidency, because the token is sure to rise in value whenever sentiment moves in his favor.