The memecoin market is a high-risk zone, and the TRUMP token has become the clearest confirmation of this thesis. As of the end of June, nearly 989,000 investors who bought this asset were at a loss. The total losses of retail traders reached an astronomical sum of $3.81 billion. These figures are not just statistics, but a harsh lesson for those who succumb to emotional impulses and hype surrounding political figures.
A detailed analysis shows that approximately two-thirds of all token holders have recorded losses or continue to hold the asset with unrealized losses. By the end of June, the TRUMP rate had collapsed to $1.76, which is 97% below the all-time high of $75.35. This dynamic is typical for memecoins: a sharp rise fueled by excitement, followed by an inevitable crash when "smart money" takes profits, leaving retail investors with devalued tokens.
However, not everyone lost. On the contrary, about 500,000 wallets received a total profit of nearly $4 billion. But here lies the key point: the gains were concentrated among a narrow group of early buyers and algorithmic traders. They entered the market at the start, before the bulk of retail investors succumbed to euphoria. This is a classic model of capital redistribution in the crypto market, where early participants and bots profit at the expense of the crowd entering positions at the peak.
Organizer Profits and Legal Risks
Notably, the project's creators profited despite the price drop. US President Donald Trump, according to a financial disclosure, received $636 million from the memecoin. The income came from trading fees, which were charged regardless of whether the token's price rose or fell. This resembles the business model of exchanges: profit comes from volume, not the direction of price movement.
The Trump family is also involved in the World Liberty Financial project, and the situation is similar: more than 85% of the 26,000 analyzed wallets holding the WLFI token were in the red. Against this backdrop, lawyers do not rule out that after the end of his presidential term, Trump may face class-action lawsuits. The formal warning on the website that the token is not an investment tool is unlikely to provide reliable protection in court.
New York University law professor Stephen Gillers aptly 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 took profits." And US Senate Banking Committee member Elizabeth Warren has already called for adding a ban on crypto income for senior officials to the CLARITY Act.
My analysis: The story of the TRUMP memecoin is a classic example of how political hype and retail greed collide with the harsh reality of the market. The organizers, using administrative resources and social media, created a perfect trap for gullible investors. While early birds and algorithmic traders enjoy profits, the bulk of token holders, including Trump supporters, suffer colossal losses. This is not just a financial tragedy, but also a serious blow to trust in the crypto industry, which is already fighting for its reputation. The memecoin market needs not only self-regulation but also stricter oversight to prevent such schemes from recurring under the guise of big names.