The memecoin market is always a high-stakes game, but the story of the TRUMP token has become one of the loudest warnings for retail investors. By the end of June 2025, nearly 989,000 holders of this asset were in the red, with their total losses reaching $3.81 billion. These are not just numbers—this is a systemic failure where emotions triumphed over rational analysis.
The Price of the Fall: From Euphoria to Collapse
The token, launched in January 2025, soared to an all-time high of $75.35, but by the end of June it had crashed 97% to $1.76. Roughly two-thirds of all buyers have either already realized losses or continue to hold the asset hoping for a rebound that is unlikely to come. At the same time, about 500,000 wallets collectively earned nearly $4 billion. However, as the data shows, the lion's share of the profits went to a narrow group of early buyers and algorithmic traders who entered positions before the mass hype. Retail investors, as usual, ended up buying in after the peak.
Who Profited from the Memecoin? The Profit Mechanism
It is important to understand: the project organizers, including Donald Trump himself, earned revenue regardless of the price dynamics. According to a financial disclosure, income from the memecoin amounted to $636 million. The secret is simple—fees from trading transactions. Even when the price fell, trading volumes generated profits for the team. The President actively promoted the token on his social network Truth Social, urging supporters to join the "TRUMP community." The White House administration later denied allegations of profiting at the expense of investors, stating that the policy aims to develop the U.S. as a global crypto hub. But the reality is this: retail players became liquidity for the project.
The Family Crypto Portfolio: Not Just TRUMP
The Trump family is also involved in the World Liberty Financial (WLFI) project. And here the picture is no better: out of more than 26,000 analyzed wallets, about 85% were at a loss. This suggests that the strategy of using political capital to launch tokens carries serious risks for the mass investor.
Legal Risks and Prospects
Experts do not rule out that after the end of his presidential term, Trump may face class-action lawsuits. The disclaimer on the memecoin's website stating that the token is not intended for investment is unlikely to hold up in court. As New York University law professor Stephen Gillers noted: "Back when Trump was a developer, he boasted about playing on people's fantasies. Here, he seems to have encouraged his supporters to invest, counting on wealth, even as he himself profited." Senator Elizabeth Warren has already proposed banning income from the crypto industry for top officials and their families.
My professional opinion: The TRUMP story is a classic example of a pump-and-dump on the political stage. Retail investors must learn the main lesson: memecoins, especially those tied to public figures, rarely bring long-term profits. If you are not in from the first minutes, you become liquidity. Be careful—the market does not forgive emotions.