Donald Trump’s memecoin, $TRUMP, has left more than 813,000 cryptocurrency wallets with a combined $2 billion in losses while the Trump Organization and its partners have profited $100 million in trading fees. Launched on Jan. 17, the token initially surged to $75 per share before crashing to around $16, wiping out most of its value.
Despite a disclaimer warning buyers to view $TRUMP as a form of support rather than an investment, many traders still bet big. One investor turned an 18-cent-per-share purchase into a $109 million payday, but most were not as lucky. On average, investors lost $20 for every dollar in trading fees earned by entities tied to Trump, including CIC Digital and Fight Fight Fight LLC, which collectively control 80% of the token.
The memecoin’s rapid decline has sparked concerns about ethics and conflicts of interest, with experts warning that governments and corporations could use it to influence Trump’s administration. Consumer advocacy group Public Citizen has filed a complaint urging a federal investigation into whether Trump’s promotion of the coin on X violated laws against soliciting gifts. Meanwhile, financial experts caution that memecoins hold no real value, calling them “pure bubbles.”
