- Around $16 million worth of TRUMP tokens were transferred from BitGo custody wallets to OKX deposit addresses within hours on Sunday, according to data from Arkham.
- The transactions, totaling about 5.48 million tokens, were linked to a wallet labeled “Official Trump: Team Allocation.
- The activity comes about a week after new U.S. regulatory guidance on cryptocurrency was released.
On-chain data showed that roughly $16 million worth of Official Trump (TRUMP) tokens were transferred to crypto exchange deposit addresses within a few hours on Sunday.
According to Arkham data, the transactions involved approximately 5.48 million TRUMP tokens moving from BitGo custody wallets to OKX deposit addresses. BitGo is a digital asset custody firm that holds crypto on behalf of institutional clients, while OKX is a major crypto exchange. The activity was first flagged by on-chain analyst Oh Auntie on Sunday.
The transactions trace back to a wallet labeled “Official Trump: Team Allocation.” The same wallet had received over 18 million TRUMP tokens about two months ago, and the analyst noted that it was valued at roughly $81.64 million at the time.
Before the exchange deposits, tokens were first consolidated into a BitGo custody wallet, with over 7 million TRUMP moved internally, according to transaction history on Arkham. The subsequent transfers to OKX followed within hours.
Official Trump token was trading close to $3, down by over 3% in the last 24 hours. On Stocktwits, the retail sentiment TRUMP remained in the ‘neutral’ territory, as chatter levels around it remained ‘extremely low’ over the past day.
Traders usually see millions of tokens moving to exchange deposit addresses as the possible sell-side supply. It doesn't mean that a sale is going to happen right away, but it does shed light on the fact that the tokens were moved closer to an exchange where they can be sold, hedged, or given away. Historically, large TRUMP token transfers to exchanges have repeatedly coincided with price drops.
Regulatory Shift
The activity followed the Securities and Exchange Commission’s (SEC) release of a new framework for cryptocurrency, under which certain crypto tokens are not treated as securities by default, a shift from previous enforcement-driven regulation.
Under the updated framework, meme coins, which are generally positioned as speculative assets, fall into categories that may be exempt from SEC oversight, which could benefit TRUMP.
Trump launched the TRUMP token ahead of his second inauguration in January last year. First Lady Melania Trump also launched a separate meme coin, Official Melania Meme (MELANIA), which was trading at $0.10, down 0.2% over the past 24 hours.
Read also: XRP Remains Under Pressure Since October As On-Chain Flows Point To A Bearish Structure
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