Context:

In a contest to dine with President Trump, participants were encouraged to buy $TRUMP memecoins, but a quirk in the rules allowed some winners to sell their coins and still attend the event. The winners were selected based on the average number of coins held during the contest rather than the total at the end, enabling some to profit by selling early. The contest led to a 6.5% drop in the coin's value once winners were announced, highlighting the speculative nature of the event. Critics, including Senator Jeff Merkley, condemned the contest as a corrupt scheme to sell access to the President, with concerns over anonymity of winners and potential foreign influence. Despite the financial loss for most participants, the Trump family profited through transaction fees, and efforts were made to stabilize the coin's value post-contest by offering NFT rewards for holders who maintained their investment until the dinner date.

Dive Deeper:

• The contest to dine with President Trump involved buying $TRUMP memecoins, but the rules allowed winners to sell their coins and still secure a seat at the dinner, based on the average number of coins held during the contest period.

• Upon the conclusion of the contest, the $TRUMP coin's value dropped by 6.5% as many participants sold off their holdings, anticipating a crash in value after the contest ended.

• Critics, including Senator Jeff Merkley, have criticized the contest as a means for Trump to profit by selling access and potentially allowing foreign influence, with many winners remaining anonymous.

• Financial analysis revealed that participants collectively spent $191 million on the coins but held $182 million worth at the contest's end, indicating overall losses, while the Trump family earned significant transaction fees.

• To curb further sell-offs, organizers announced that holders who maintain their $TRUMP coins until the dinner would receive a 'TRUMP DIAMOND HAND' NFT, aiming to stabilize the coin’s value.