Key Takeaways
- The issuer of the OFFICIAL TRUMP memecoins wants to launch a digital asset treasury for the token.
- The TRUMP DAT could be planning to raise as much as $1 billion.
- DATs have been criticized for being cynical schemes that allow investors to exit positions in struggling companies at a premium.
A plan to raise $200 million to launch an OFFICIAL TRUMP (TRUMP) digital asset treasury (DAT) company dedicated to the memecoin could be underway as the token’s issuer looks to cash in on the latest trend in crypto.
TRUMP Treasury
Fight Fight Fight LLC., the firm behind the TRUMP memecoin, is reportedly planning to establish a DAT company that ambitiously hopes to raise as much as $1 billion and accumulate TRUMP tokens.
According to people close to the matter, it is currently working to secure at least $200 million.
The firm, which is run by one of Donald Trump’s long-term friends, Bill Zanker, is reportedly leading this initiative.
The Bloomberg report argues that it’s yet another play from Zanker to breathe new life into the token.
Since launching in January and reaching highs of around $45, TRUMP has slumped to just $7.55. Its market cap shrank from over $9 billion to $1.5 billion.
The token’s supply is capped at 1 billion, with 200 million currently in circulation.
The remaining 800 million are locked up and controlled by Fight Fight Fight, as well as CIC Digital, a Trump Organization affiliate.
Skepticism
Right now, the DAT is the big institutional play in crypto.
It’s seeing either the creation of entirely new publicly traded companies dedicated to stacking whichever crypto they desire, or the conversion of struggling, often niche, low-revenue firms.
Typically, they’ve targeted the biggest cryptos, think Strategy and Metaplanet with Bitcoin (BTC), or Bitmine Immersion or SharpLink with Ethereum (ETH).
However, there’s been an increasing appetite for altcoins, which has seen DATs created around Solana, Binance Coin, Dogecoin, and newcomers like Hyperliquid and Sui.
The announcement of a firm’s DAT shift alone can send its stock prices skyrocketing, and can even offset a firm’s financial losses.
But it’s often criticised as cynical, unsustainable, and perhaps even a little shady.
Some suspect that DATs operate as wealth transfer mechanisms as opposed to being dedicated to crypto accumulation. Or in other words, a company exit vehicle.
According to one analyst, most of these firms aren’t making meaningful crypto acquisitions, but are instead a means of redistribution so crypto insiders can exit at a premium valuation.
If Zanker’s TRUMP DAT ambitions are met, this could see Fight Fight Fight become a publicly traded company, convert an existing one, or establish an entirely new entity.
However, people in the know said the deal remains in the works and might not even happen.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
