The team behind the $TRUMP memecoin is rolling out a new loyalty program

The move comes just after a wave of major token holders cashed out, following the conclusion of a high-stakes contest offering a chance to dine with Donald Trump himself.

The team behind the $TRUMP memecoin is launching a new loyalty program, according to its official website and social media channels.

The move comes just after a wave of major token holders cashed out, following the conclusion of a high-stakes contest offering a chance to dine with Donald Trump himself.

Announced on Monday, the loyalty initiative invites users to link their self-custodied crypto wallets to a leaderboard system, where they can earn “Trump Reward Points” and exclusive digital badges. “Join the Trump Community! Have FUN!” the website reads.

While exact details are still sparse, the program appears to be designed to reward users for ongoing participation. It remains to be seen how this will work in practice.

This announcement came as several major $TRUMP token holders began cashing out following the conclusion of a contest offering a meal with Trump to the top 220 token holders. By Monday afternoon, over 20 wallets that were in the top 220 either emptied their holdings or significantly reduced them, according to the cryptocurrency tracker.

In an attempt to keep holders interested, the coin’s issuer—Fight Fight Fight LLC—stated that those who keep their coin balances until the dinner date will receive a limited edition TRUMP DIAMOND HAND NFT on the Solana blockchain.

These NFTs will be a rare collectible and will also increase the holder’s ability to earn Trump Reward Points.

What Happened: A recent report by Bloomberg noted that the Trump memecoin initiative has come under political scrutiny.

Democratic Senators Elizabeth Warren and Adam Schiff penned a letter to the Office of Government Ethics and the Internal Revenue Service, calling for a federal ethics probe into the token.

Their complaint stems from an alleged arrangement where Trump is being paid a percentage of the revenue generated from the $TRUMP token sales. The senators allege that Trump is illegally monetizing his name and office through this digital asset scheme.

Furthermore, a Bloomberg investigation uncovered that many of the major $TRUMP token holders and participants in the dinner contest are based in China and Taiwan. This revelation sparked further scrutiny regarding the true nature of the $TRUMP token initiative and its potential to flout U.S. political finance laws.

The price of the $TRUMP token slid around 8% in 24 hours, as per CoinMarketCap. The token is now down to around $2.55 billion, from a $15 billion market cap it once reached in January. It saw a surge in April after the dinner contest was announced but has since lost steam.

Two entities - CIC Digital LLC, affiliated with the Trump Organization, and Fight Fight Fight LLC - own 80% of the total $TRUMP token supply. This massive stake is currently locked under a three-year release schedule, with the first unlock anticipated in roughly two months from now. Once unlocked, the organizations could begin selling off their holdings. Both CIC Digital and Celebration Cards LLC are entitled to revenue generated from the trading activity of the memecoin.