The massive collapse of the TRUMP memecoin has led to colossal losses for retail investors. As of the end of June, approximately 989,000 token holders recorded losses totaling $3.81 billion. This is one of the most striking examples of how hype around a political figure can turn into a financial disaster for unprepared market participants.
Key Figures and Dynamics
Roughly two-thirds of all token buyers have either already realized losses or continue to hold the asset with unrealized losses. By the end of June, the price of TRUMP had fallen to $1.76, 97% below its all-time high of $75.35. Meanwhile, about 500,000 wallets managed to achieve a combined profit of nearly $4 billion. However, as the data shows, the gains were concentrated among a narrow group of early buyers and algorithmic traders who entered the market before the mass hype began.
Who Profited from the Decline?
The majority of retail investors, including supporters of the former president, joined the project after the rapid price surge. This is a classic "pump and dump" scenario, where early participants lock in profits at the expense of latecomers. Interestingly, Donald Trump himself, according to a financial disclosure, earned $636 million from the project regardless of the price dynamics. The organizers received fees from trading operations, allowing them to profit even amid the asset's decline.
Legal Risks and the Future
The Trump family is also involved in the crypto project World Liberty Financial, where the situation is similar: out of more than 26,000 analyzed wallets, about 85% were in the red. Lawyers do not rule out that after the end of Trump's presidential term, he may face class-action lawsuits. The warning on the memecoin's website that the token is not an investment tool is unlikely to provide reliable protection. As New York University law professor Steven Gillers noted, "When Trump was a developer, he boasted about playing on people's fantasies. Here, he encouraged his supporters to invest, counting on wealth, even as he himself profited."
My Expert Commentary: The TRUMP story is a classic example of how political marketing and a lack of fundamental value lead to market distortion. For investors, this is a lesson: memecoins, especially those tied to personalities, are not assets but tools for short-term speculation. Entering such projects after the hype almost guarantees losses, unless you possess insider information or an ultra-fast algorithm.