The meme coin market is once again showing its brutal nature, and this time the epicenter of the tragedy is the TRUMP token. On-chain data analysis shows that out of approximately 989,000 wallets that purchased this asset, the vast majority were deep in the red by the end of June. The total loss for this group of investors reached $3.81 billion.
At the time of analysis, the token was trading at $1.76, representing a 97% collapse from its all-time high of $75.35. This is a classic "pump and dump" scenario, where the majority of retail investors entered the market at the peak of hype, while profits of nearly $4 billion went only to a narrow cohort of early buyers and algorithmic traders. Approximately 500,000 wallets were in profit, but these are typically those who managed to lock in gains at the top.
Who profited from the crash?
Notably, the project organizers, including Donald Trump himself, came out ahead regardless of the price dynamics. Financial reports show that revenue from the meme coin amounted to $636 million. The mechanism here is simple: fees from trading operations generated profits even as the asset's value fell. This raises serious questions about the ethics of promoting such projects by public figures.
After the token's launch in January 2025, it was actively promoted on social media, urging supporters to join the "TRUMP community." The White House administration, for its part, denies allegations of profiting at the expense of investors, claiming that all actions are aimed at developing the U.S. as a global crypto hub. However, the data speaks for itself.
Interestingly, the situation with the WLFI token, associated with the Trump family, is no better: out of 26,000 analyzed wallets, about 85% are also incurring losses. Lawyers are already warning that after the presidential term ends, class-action lawsuits may be possible, despite formal disclaimers on the project's website stating that the token is not an investment instrument.
Expert opinion: This case is a perfect illustration of why meme coins, especially those tied to big names, are a high-risk zone. Retail investors often fall victim to FOMO and fail to consider that "insiders" and early participants have already built profit-taking mechanisms into the token that are independent of its price. The TRUMP story is not just about losing money; it is a lesson in how marketing and political influence can mask a classic financial pyramid scheme.