TRUMP memecoin crash: nearly a million investors lost $3.8 billion — my analysis of the situation
The memecoin market has once again delivered a harsh lesson to retail investors. My analysis of on-chain data shows that out of nearly 989,000 wallets that purchased the TRUMP token, cumulative losses reached a staggering $3.81 billion by the end of June. This is not just a correction — it is a classic example of capital redistribution from the masses to insiders.
Key takeaway: roughly two-thirds of all token holders have either already realized a loss or are sitting in deep drawdowns. At the time of analysis, the coin's price was $1.76, 97% below its all-time high of $75.35. Meanwhile, about 500,000 wallets made nearly $4 billion in profits, but, as expected, these gains are concentrated among early buyers and algorithmic traders. Retail investors, driven by FOMO, entered at the peak.
Who Profited from the Decline?
Notably, the project organizers and President Donald Trump came out ahead regardless of price dynamics. According to financial disclosures, revenues from the memecoin amounted to $636 million. The secret is simple: trading fees generated profits even amid the crash. The White House administration, of course, denies the allegations, claiming the policy is aimed at developing the crypto industry in the U.S.
Remarkably, this is not the only failed project in the family. In the WLFI token, associated with World Liberty Financial, out of more than 26,000 analyzed wallets, about 85% were also in the red. A systemic pattern is evident.
Legal Risks and Ethics
Lawyers are already warning 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 solid protection. New York University law professor Steven Gillers aptly noted that Trump, as in his days as a developer, played on people's fantasies, encouraging them to invest in the hope of wealth while he himself profited.
My expert opinion: This story is not just another pump and dump. It is a warning sign of how political capital can be monetized at the expense of naive supporters. Investors should remember: memecoins, especially those with political backgrounds, are not assets but tools for extracting liquidity. Lawmakers are already eyeing this practice — Senator Elizabeth Warren proposes barring top officials from crypto income. And in my view, this is an absolutely correct step.