The memecoin market has once again demonstrated its ruthless nature: nearly 989,000 investors who purchased the TRUMP token found themselves deep in the red by the end of June. The total losses for this group reached a staggering $3.81 billion. This is not just a statistic—it is a massive transfer of capital from retail traders to a narrow circle of insiders.
97% drop from all-time high
Analysis of on-chain data shows that approximately two-thirds of all token buyers have either already realized losses or hold the asset with unrealized losses. By the end of June, TRUMP quotes had fallen to $1.76, which is 97% below the all-time high of $75.35. This is a classic "pump and dump" scenario, executed on a scale rarely seen even by cryptocurrency standards.
Who profited from retail blood?
Conversely, about 500,000 wallets achieved total profits of nearly $4 billion. However, as the data shows, these gains were extremely concentrated. The bulk of the profits went to a small group of early buyers and algorithmic traders who entered positions before the memecoin went mainstream. Retail investors, fueled by hype on social media, entered the market at its peak, providing liquidity for "smart money" to exit.
Trump's income does not depend on token price
Notably, the project organizers, including the president's family, came out ahead regardless of the price dynamics. According to financial disclosures, revenue from the memecoin amounted to $636 million. The secret is simple: a fee on every trading transaction. Even when the token's price crashed, trading volumes remained high, generating profit for the issuer. This resembles a casino model where the house always wins.
After its launch in January 2025, the token was actively promoted on the Truth Social network. The White House administration, commenting on the situation, stated that the actions are aimed at developing the U.S. as a global hub for the crypto industry, rejecting accusations of profiting at the expense of investors.
Family affair: losses on WLFI
In addition to TRUMP, the Trump family is involved in the World Liberty Financial project. And the picture here is no better: out of more than 26,000 analyzed wallets, about 85% of WLFI token holders were also in the red. This points to a systematic approach rather than the random success of a single asset.
Legal risks on the horizon
Lawyers do not rule out that after the end of his presidential term, Trump may face a wave of class-action lawsuits. The warning on the memecoin's website that the token is not an investment tool is unlikely to provide solid protection in court. 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 while he himself profited."
Senator Elizabeth Warren has already proposed amendments to the CLARITY Act banning the president, vice president, and members of Congress from receiving income from the crypto industry. This incident will likely accelerate the adoption of such regulation.
Expert opinion: This case is yet another reminder that memecoins, especially those with political backgrounds, are tools for redistributing capital, not creating value. Retail investors chasing "quick money" on hype almost always end up as victims. The market teaches, but these lessons are expensive.