The meteoric rise and subsequent crash of Donald Trump’s memecoin, $TRUMP, have left more than 810,000 crypto wallets with a combined loss of $2 billion, according to an analysis reviewed by The New York Times.
While some early investors made huge profits, including professional traders who bought in early and sold at peak prices, many retail traders faced significant financial setbacks. Meanwhile, Trump and his family have reportedly earned approximately $100 million in trading fees alone.
Early Buyers Profited While Others Lost Billions
The launch of the $TRUMP memecoin attracted the attention of both casual and professional crypto traders. According to reports, some early buyers—many of whom were based in China—purchased the token at its opening price of $0.18 and quickly sold as the price surged, making massive profits.
One account in particular raised suspicion after purchasing $1,096,109 worth of $TRUMP just three hours before the official launch. This investor flipped the tokens for a staggering $50 million profit.
Further trading increased their profits to $109 million, according to researcher Molly White. Another wallet was bought in just two minutes post-launch and sold within 30 minutes, netting $2.7 million.
While these traders managed to cash out their profits, other investors were not as lucky. Within just 19 days of trading, over 813,000 wallets had suffered losses, either by selling at a lower price than their purchase value or by holding onto coins that lost value.
Regulators Warn of “Pump-and-Dump” Risks
The dramatic price swings of $TRUMP have drawn concerns from financial regulators. In January, New York regulators issued a warning about “pump-and-dump schemes”, where creators or insiders inflate the price of a token, sell off their holdings at a profit, and leave ordinary investors with losses.
Despite these warnings, there is currently no evidence that Trump or his associates artificially manipulated the price of $TRUMP. The coin’s website lists CIC Digital LLC, an affiliate of The Trump Organization, and Fight Fight Fight LLC as owners of 80% of the token’s supply.
Trump’s Reaction to the Coin’s Success
Donald Trump, when questioned about the coin’s rapid rise, claimed to have little knowledge about it. “I don’t know much about it other than I launched it,” he told reporters. “I heard it was very successful. I haven’t checked it. Where is it today?”
His response did little to ease concerns from regulators and watchdog groups, who are closely watching the financial implications of a former U.S. president launching a cryptocurrency.
Also Read: Trump-Branded Websites Start Accepting $Trump Memecoin, Will Utility Surge $TRUMP Price?
Supporters Turn on $TRUMP as Price Falls
As the coin’s value tumbled, many early supporters voiced their frustrations. One Trump supporter, who had initially celebrated the launch by tagging $TRUMP with a rocket ship emoji on X (Twitter), later expressed regret.
Eleven days after his initial post, he wrote, “Done with this $TRUMP crap. Sold it all, what a joke!” He did, however, admit to keeping a small amount “to see what happens.”
At the time of his frustration, $TRUMP was trading between $24 and $27. As of publication, its price had fallen to around $16.55, according to data from crypto.com.
Calls for Government Investigation
Consumer advocacy group Public Citizen has urged the Department of Justice and the Office of Government Ethics to investigate whether Trump violated federal laws, including the Constitution’s Emoluments Clause and anti-bribery statutes, by promoting $TRUMP and encouraging his supporters to invest in it.
Some experts worry that $TRUMP could allow foreign governments to secretly curry favour with Trump, bypassing constitutional prohibitions on foreign gifts to U.S. officials.
Mark Hays, Associate Director of Cryptocurrency and Financial Technology at Demand Progress Education Fund, warned that foreign leaders or wealthy investors could buy $TRUMP as a way to influence Trump while keeping their identities hidden.
“Purchases of $TRUMP coin arguably give foreign governments and private interests a virtual, quasi-anonymous way to curry favour with the president, anytime, anywhere,” Hays wrote in Rolling Stone.
The $TRUMP is now trading at $15.59, down by more than 11% in the last 24 hours. While no direct evidence of foreign interference has surfaced, the lack of transparency in crypto transactions makes it nearly impossible to track who is buying and selling large amounts of $TRUMP.
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