The launch of the TRUMP memecoin in January 2025 turned into a financial disaster for the vast majority of retail participants. As of the end of June, approximately 989,000 investors who bought the token collectively lost $3.81 billion. This is a classic example of a "pump and dump" scheme, where insiders and early participants reaped the main benefits.
Analysis shows that roughly two-thirds of all token holders either realized losses or are holding the asset with unrealized losses. By the end of June, the TRUMP price had fallen to $1.76 — 97% below its all-time high of $75.35. This dynamic is typical of memecoins, where liquidity and interest quickly dry up after the initial hype.
Notably, about 500,000 wallets still made a profit totaling nearly $4 billion. However, these gains were concentrated in the hands of a narrow group of early buyers and algorithmic traders. The majority of retail investors, caught up in the hype, entered the market after the rapid price surge, which led to their losses.
Amid the price collapse, U.S. President Donald Trump and his team earned $636 million from the project. Revenues were generated from trading fees, which were collected by the organizers regardless of the token's price. The White House administration, commenting on the situation, rejected accusations of profiting at the expense of investors, emphasizing that the actions are aimed at developing the U.S. as a global center for the crypto industry.
The Trump family is also involved in the World Liberty Financial (WLFI) project, and its data is no less discouraging: out of more than 26,000 analyzed wallets, about 85% of WLFI token holders were also in the red.
Lawyers do not rule out that after Trump's presidential term ends, he may face class-action lawsuits from affected investors. The formal disclaimer on the memecoin's website stating that the token is not intended for investment is unlikely to provide reliable protection in court.
My expert opinion: The TRUMP story is a clear lesson in how a political brand and personal popularity can be used to massively extract capital from an unprepared audience. Investors must remember that memecoins, especially those tied to public figures, carry enormous risks, and their fundamental value is often zero. In this case, we see that only a narrow group of insiders made a profit, while retail participants fell victim to a classic scheme.