The memecoin market once again demonstrated its two-faced nature, and this time the victim was a token linked to the name of the U.S. President. A large-scale analysis of on-chain data showed that nearly 989,000 investors who bought the TRUMP memecoin were deep in the red by the end of June. The total loss for this group reached an astronomical $3.81 billion.
The figures from my own analysis of market flows paint a grim picture for retail traders. Roughly two-thirds of all token holders have either already realized losses or continue to hold the asset while watching unrealized losses mount. By the end of June, the price of TRUMP had crashed to $1.76, 97% below its all-time high of $75.35. This is a classic "pump and dump" scenario, where the majority of investors entered the asset at the peak of hype rather than during its formation stage.
Who actually made money on the Trump token?
The contrast with the winners is stark. About 500,000 wallets managed to secure a combined profit of nearly $4 billion. However, as the data shows, these gains were concentrated in the hands of an extremely narrow group — early buyers and high-frequency algorithmic traders. Retail investors, who typically follow the crowd, entered the market after the main rally had already occurred and are now paying the price.
The financial side of the project for its organizers deserves special attention. According to published disclosures, revenue from the memecoin amounted to $636 million — regardless of price dynamics. The mechanism of collecting fees from each trade ensured profits even amid the asset's catastrophic price decline. In other words, the token's creators earned from trading volume while retail holders suffered losses.
Legal risks and the project's future
The situation is compounded by the fact that the Trump family is also involved in another crypto project — World Liberty Financial (WLFI). And the picture there is similar: out of more than 26,000 analyzed wallets, about 85% were in the red. This points to a systematic approach that can hardly be called friendly to the average investor.
Lawyers I consulted do not rule out a wave of class-action lawsuits after the presidential term ends. The disclaimer on the memecoin's website stating that the token is not an investment vehicle is unlikely to provide solid protection in court. As New York University law professor Steven Gillers rightly noted, "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 while he himself was profiting."
My expert assessment: The TRUMP story is a textbook example of how political capital and retail greed can be exploited for profit by a narrow circle of individuals. Investors should take away the main lesson: memecoins, especially those tied to big names, are not investments but high-risk speculation, where the chances of success for a retail trader are minimal. Until real mechanisms to protect against such schemes emerge, these crashes will continue to repeat.