A major cryptocurrency trader has incurred a staggering $24.4 million loss after selling 763,582 Official Trump (TRUMP) tokens for $9.48 million USDC in an urgent effort to exit the market.
The sell-off as revealed on X by Lookonchain earlier today, occurred just three hours ago, marking one of the most significant financial hits in recent trading history.
Initially, this trader had found remarkable success in the TRUMP market, securing an $11.8 million profit.
However, after reinvesting heavily, the ongoing downturn in TRUMP’s price led to a devastating capitulation. This forced liquidation not only erased previous profits but also resulted in a net loss of $12.6 million in personal capital.
High-Risk Strategy Leads to Catastrophic Downfall
The trader’s journey with TRUMP started on a high note, making an $11.8 million profit in early trades.
Encouraged by these gains, he reinvested aggressively, purchasing an additional $33.9 million worth of TRUMP tokens in an attempt to maximize returns.
Unfortunately, this strategy quickly backfired as the token’s price began a steady decline. For an entire month, the investor held onto his assets, expecting a price recovery that never materialized.
As losses mounted, he was ultimately forced to sell his entire position at a steep discount, resulting in one of the most substantial realized losses in TRUMP token’s trading history.
Also Read: Crypto Investor Invests $1.82M In $TRUMP Following Upbit Exchange Listing, After Earning $2M Profit
TRUMP Token Faces Intense Selling Pressure Amid Market Decline
The whale’s massive liquidation comes at a time when the TRUMP token is already experiencing a significant downturn.
As of today, TRUMP is trading at $12.99, with an impressive 24-hour trading volume of over $1.36 billion.
Despite the high trading activity, the token has suffered a 14.36% drop in the past day and a 21.40% decline over the past week. With a circulating supply of 200 million TRUMP tokens, the overall market capitalization currently stands at approximately $2.6 billion.
The sharp drop in price has sparked concerns about continued selling pressure, as traders fear that more liquidations from large holders could further destabilize the token’s value.
Growing Market Losses and Calls for Investigation into TRUMP Token
This incident highlights the dangers of overleveraging in the volatile cryptocurrency market.
Several traders have recently suffered significant losses on TRUMP, including another whale who lost $21 million after a failed $33.9 million trade.Â
Additionally, a retail investor lost $542,000 after purchasing $1.6 million worth of TRUMP tokens amid a sharp 32% price drop.Â
The controversy surrounding the token has also gained political attention, with the advocacy group Public Citizen calling for a U.S. Department of Justice investigation into the potential legal risks associated with the promotion of TRUMP memecoin.Â
As the situation unfolds, investors are left to weigh the risks of holding onto TRUMP in a rapidly shifting market landscape.
Also Read: Trump’s Family Makes $100M From $TRUMP Trading Fees While 810K Wallet Holders Lose $2B Combined