The memecoin market has once again demonstrated its brutal nature, and this time, nearly 989,000 investors who believed in the TRUMP token became the victims. By the end of June, their total realized and unrealized losses reached an astronomical sum of $3.81 billion. This is a classic example of how hype and political capital can be monetized at the expense of the retail audience.
An analysis of on-chain data shows that approximately two-thirds of all token buyers have either already locked in a loss or are holding the asset with a deep deficit. By the end of June, the price of TRUMP had crashed to $1.76, representing a 97% collapse from its all-time high of $75.35. For those who entered a position at the peak, the situation became catastrophic.
However, there were also those who ended up in profit. About 500,000 wallets collectively earned nearly $4 billion. As expected, all the profits were concentrated in the hands of a narrow group of early buyers and high-frequency algorithmic traders. The vast majority of retail investors, driven by FOMO, entered the asset only after the rapid rally, effectively buying at the top from those who dictated the market.
The Profit Paradox: How Organizers Profit from the Decline
Notably, the losses of token holders did not affect its creators at all. U.S. President Donald Trump, whose name the coin bears, earned $636 million from the project, and this amount is independent of the price. The mechanism is simple: the organizers received a commission from every trading operation. Thus, the higher the volatility and trading volumes (even during a decline), the greater their profit.
After the launch in January 2025, Trump actively promoted the token on his social network Truth Social, urging supporters to join the "TRUMP community." Later, the White House administration rejected any accusations of profiting at the expense of investors, stating that their goal is to make the U.S. a global center for the crypto industry. However, the numbers speak for themselves.
Family Affair and Legal Risks
Trump's family is also involved in the World Liberty Financial (WLFI) project. And the picture here is no better: out of more than 26,000 analyzed wallets, about 85% were in the red. Lawyers already predict that after Trump's presidential term ends, he may face class-action lawsuits. The warning on the memecoin's website that the token is not an investment vehicle is unlikely to provide reliable protection in court.
"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," noted New York University law professor Steven Gillers.
Significantly, Senator Elizabeth Warren has already proposed adding a provision to the CLARITY Act banning the president, vice president, and members of Congress from receiving crypto income. This case will set a powerful precedent for regulating political memecoins.
Expert Opinion: This story is not just another pump-and-dump. It is a demonstration of how the lack of regulation and the use of political influence create a "perfect storm" for retail investors. While early insiders lock in profits, the bulk of participants pay for believing in a "free lunch." The memecoin market remains a casino where the rules of the game are written on the fly, and the main prize always goes to the house.