The meme coin market has once again demonstrated its brutal nature, and this time, nearly a million retail investors who believed in the TRUMP token became victims. According to my data analysis, by the end of June, approximately 989,000 holders of this asset were at a loss, with their total losses reaching $3.81 billion. This is a classic example of how hype-driven assets destroy the capital of those who enter the market at the peak of excitement.
The key takeaway is that roughly two-thirds of all token buyers have either realized losses or continue to hold the asset with unrealized losses. By the end of June, TRUMP was trading at just $1.76, 97% below its all-time high of $75.35. Such a collapse is not a coincidence but a natural outcome for a meme coin lacking fundamental value and sustained solely by emotions and political hype.
On the other hand, about 500,000 wallets still made a profit, totaling nearly $4 billion. However, as the data shows, these gains were extremely concentrated: the main benefits were reaped by a small group of early buyers and algorithmic traders who entered positions before the rapid rise. Retail investors, as always, ended up serving as liquidity for "smart money."
Who Profited from the Decline?
Notably, the project organizers, including U.S. President Donald Trump, earned income regardless of the price dynamics. Financial disclosures showed that revenues from the meme coin amounted to $636 million — these are trading fees that accrued even as the price fell. Trump actively promoted the token on Truth Social, urging supporters to join the "community," which only worsened the situation for those who heeded his call.
Beyond TRUMP, the Trump family is involved in the World Liberty Financial (WLFI) project, and the picture there is no better: out of over 26,000 analyzed wallets, 85% were in the red. This points to a systemic problem: political projects in cryptocurrency often become traps for unprepared investors.
Lawyers already anticipate that after the end of his presidential term, Trump may face class-action lawsuits. The warnings on the website stating that the token is not an investment vehicle are unlikely to provide solid protection. As New York University law professor Steven Gillers noted, Trump essentially encouraged supporters to "play on fantasies" while he himself profited.
My expert conclusion: The TRUMP story is not just another meme coin failure but a warning sign for the entire industry. When political figures use cryptocurrencies for personal gain, undermining retail investors' trust, it damages the reputation of the entire market. Investors should remember: if an asset is promoted through political rhetoric rather than technological value, the probability of capital loss approaches 100%.