Over 813,000 crypto wallets have incurred losses after purchasing President Donald Trump’s memecoin, $TRUMP.
A Chainalysis report, commissioned by The New York Times, indicates total losses for investors approaching $2 billion. The coin went live on January 17 and rallied in value before collapsing.
It reached a peak of $75 a share. Now, it trades around $16, a fall of nearly 80%. The coin’s market value today is about $3.7 billion, much less than its $14.75 billion peak.
It verifies that 813,294 wallets lost funds in a matter of less than three weeks. Some held on as the price plummeted. Others sold for a loss. For each dollar earned in trading fees, $20 disappeared from investors’ wallets.
While their investments evaporated for small investors, the creators of the coin made profits. Trump-affiliated accounts have earned an estimated $100 million in trading fees, according to Merkle Science and Chainalysis. The majority of that money remains in digital wallets, not redeemed.
A partner firm, Fight Fight Fight LLC, and an affiliate of the Trump Organization, CIC Digital, command close to 80% of all $TRUMP coins. The groups have not made any public statements regarding the losses.
$TRUMP coin launch fuels inauguration frenzy
Trump himself is the owner of CIC Digital, but no longer manages the organization himself. He transferred the leadership of his company before his latest campaign.
While the Trump Organization had close involvement with the coin’s launch, there was no effort made to establish a blind trust. Ethical critics argue that that leaves the door open for conflicts of interest.
The rollout of the memecoin coincided with Trump’s January inauguration by just a few days. That timing, coupled with the coin’s marketing, generated broad interest. Speculators flocked in, betting on a wave of financial and political momentum. That wave soon crashed.
The $TRUMP crash reflects a broader pattern. Memecoin value throughout the market has decreased precipitously. Total memecoin capitalization was $119 billion in December. It has fallen to just $45 billion, based on CoinMarketCap.
Despite the losses, political-themed token trading remains robust. However, for most, the experience of the Trump coin serves as a lesson.
