The story of the TRUMP memecoin, launched in January 2025, has become a classic example of how hype-driven assets destroy retail investors' capital. By the end of June, approximately 989,000 wallets that purchased this token were deep in the red. The total unrealized and realized losses for this group reached $3.81 billion.
An analysis of on-chain data shows that roughly two-thirds of all TRUMP holders have either already locked in losses or continue to hold the asset, whose price has crashed 97% from its all-time high of $75.35. At the time of assessment, the token was trading at $1.76. This is not just a correction — it is a complete collapse of liquidity and trust.
Who profited and who was left empty-handed
Notably, about 500,000 wallets still managed to achieve total profits of nearly $4 billion. However, as the data shows, these gains were extremely unevenly distributed. The main benefit was reaped by a small group of early buyers and algorithmic traders who managed to enter positions before the rapid rally. The vast majority of retail investors, driven by FOMO and public endorsements, entered the market at or near the peak.
Donald Trump himself, according to a published financial disclosure, earned $636 million from the project. It is important to understand the mechanics: the organizers received a commission on every trade, so their income did not depend on the price direction. Profit was generated from volume, which was colossal in the early days. Thus, the memecoin creators hedged their risks at the expense of retail participants.
Legal risks and political context
Beyond TRUMP, the Trump family is involved in the World Liberty Financial (WLFI) project, and the situation there is similar: about 85% of the 26,000 analyzed WLFI holder wallets are at a loss. This points to a systematic approach to monetizing an audience through cryptocurrency instruments.
Lawyers do not rule out that after the end of his presidential term, Trump may face class-action lawsuits. The disclaimer on the website stating that the token is not an investment vehicle is unlikely to provide solid protection in court, especially given the active promotion of the asset on social media. New York University law professor Stephen Gillers aptly noted: "Back when Trump was a developer, he boasted that he played on people's fantasies. Here, he seems to have encouraged his supporters to invest, counting on wealth, even as he himself profited."
My analysis: The TRUMP story is not just another pump-and-dump. It is an alarming signal for the entire industry, showing how political figures can use decentralized finance to directly profit from their audience. While regulators debate asset classification, retail investors are once again paying for an "educational" experience. Against the backdrop of Senator Elizabeth Warren's proposal to add a ban on crypto income for senior officials to the CLARITY Act, this case could become a catalyst for stricter regulation of memecoins in the United States.