The TRUMP memecoin, launched with great fanfare, has turned into a financial disaster for the vast majority of retail participants. As of the end of June, nearly 989,000 wallets that purchased this token were in the red. The total losses for these investors reached a staggering $3.81 billion. This figure is a stark illustration of how hype-driven assets can destroy the capital of small players.
Analysis shows that roughly two-thirds of all token holders have either already realized a loss or are holding the asset with unrealized losses. By the end of June, the TRUMP price had collapsed to $1.76, representing a drop of nearly 97% from its all-time high of $75.35. This dynamic is a classic example of a "pump and dump" scheme, where early participants and algorithmic traders profit at the expense of the crowd.
Interestingly, about 500,000 wallets did manage to realize a total profit of nearly $4 billion. However, this profit was extremely unevenly distributed. The bulk of the income is concentrated in the hands of a small group of early buyers and algo-traders who entered the market before the rapid surge. Retail investors, on the other hand, mostly joined the frenzy after the price had already peaked and are now bearing the brunt of the losses.
Organizers' Revenues and Legal Risks
US President Donald Trump, despite the token's price decline, profited from the project. According to his financial disclosure, the memecoin generated $636 million in revenue. The organizers collected a fee on every trade, so their profit was formed regardless of whether the asset's price rose or fell. Trump actively promoted the token on his social network Truth Social, urging supporters to join the "TRUMP community."
In addition to TRUMP, the Trump family is involved in the World Liberty Financial (WLFI) project. And here the situation is similar: more than 85% of the 26,000 analyzed wallets holding the WLFI token are also in the red. Lawyers do not rule out that after the end of his presidential term, Trump could face class-action lawsuits. The disclaimer on the website stating that the token is not an investment instrument is unlikely to provide reliable protection.
Expert opinion: This case is yet another reminder that memecoins, especially those launched by public figures, are high-risk instruments where the retail investor almost always ends up acting as a liquidity provider for insiders. Regulators should pay close attention to such projects, where public promotion is combined with the opportunity for organizers to profit at the expense of their followers.