The memecoin market has once again delivered a harsh lesson to retail investors. Data analysis shows that approximately 989,000 participants who bought the TRUMP token were in the red by the end of June. The total losses for this group reached $3.81 billion — a figure that prompts reflection on the nature of speculative hype surrounding politicized assets.
Roughly two-thirds of all token holders have either already realized losses or continue to hold the asset with unrealized losses. By the end of June, the TRUMP price had fallen to $1.76, which is 97% below its all-time high of $75.35. This is a classic "pump and dump" scenario, where the bulk of retail investors entered the market after a rapid surge, while profits — nearly $4 billion — went to just 500,000 wallets, primarily early buyers and algorithmic traders.
Who made money on the memecoin?
Notably, the project's organizers, including U.S. President Donald Trump, generated income regardless of the price dynamics. According to a published financial disclosure, revenues from the memecoin amounted to $636 million. The mechanism is simple: fees from trading operations yielded profits even amid the price collapse. Trump actively promoted the token on his social network Truth Social, urging supporters to join the "TRUMP community." The White House later denied allegations of profiting at investors' expense, stating that the actions were aimed at developing the U.S. as a global crypto hub.
Family crypto portfolio under pressure
Beyond TRUMP, the Trump family is involved in the World Liberty Financial (WLFI) project. Analysis shows that out of more than 26,000 tracked wallets, approximately 85% of WLFI token holders also incurred losses. This points to a systemic issue: retail investors, inspired by big names, ignore fundamental risks.
Lawyers do not rule out that after the end of his presidential term, Trump may face class-action lawsuits. The warning on the memecoin's website that the token is not an investment vehicle is unlikely to provide solid protection. As New York University law professor Steven 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 called for adding a ban on crypto income for the president, vice president, and members of Congress to the CLARITY Act. This could set a precedent for regulating politicized digital assets.
My expert opinion: The TRUMP story is not just another memecoin failure, but a vivid indicator of how retail investors fall victim to marketing built on trust in public figures. The cryptocurrency market requires maturity: while early insiders and algorithmic traders lock in profits, the majority of participants pay for the lesson. Investors should remember that even the biggest names may hide structures that profit from your emotions, not from the real value of the asset.