The grim statistics for the TRUMP memecoin have fully materialized: nearly 989,000 token holders recorded total losses of $3.81 billion by the end of June. These figures are based on blockchain data analysis conducted by the analytics firm Nansen. The picture we see is a classic example of retail investors falling victim to hype.
Approximately two-thirds of all token buyers have either already realized losses or continue to hold an asset that has depreciated by 97% from its all-time high of $75.35. By the end of June, the coin was trading at just $1.76. This is not merely a correction — it is a collapse that has wiped out virtually the entire project's market capitalization for latecomers.
However, not everyone ended up in the red. About 500,000 wallets managed to secure total profits of nearly $4 billion. But as the data shows, these gains were extremely concentrated. The main benefits went to a small group of early buyers and algorithmic traders who entered positions before the massive influx of retail investors. The majority of ordinary investors bought the token after its rapid surge, which led to such extensive losses.
Who Profited from the Decline?
Notably, U.S. President Donald Trump, whose name the token bears, turned out to be among the beneficiaries regardless of the price dynamics. According to his financial disclosure, revenues from the project amounted to $636 million. The mechanism is simple: the organizers collected fees from each trade. High volatility and enormous trading volumes, especially in the early days, ensured profits even when the asset's price collapsed.
Trump actively promoted the token on his social network Truth Social, urging supporters to join the "TRUMP community." The White House later denied allegations that the president profited at the expense of investors, stating that the actions were aimed at developing the U.S. as a global crypto hub. However, in practice, it looks different.
In addition to TRUMP, the Trump family is involved in the World Liberty Financial project. And the situation there is similar: more than 85% of the 26,000 analyzed WLFI token holder wallets are at a loss.
Legal Risks
Lawyers interviewed do not rule out that after the end of his presidential term, Trump may face a wave of class-action lawsuits. The disclaimer on the memecoin's website stating that the token is not an investment instrument is unlikely to provide reliable protection. 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."
Senator Elizabeth Warren has already proposed legislation to ban the president, vice president, and members of Congress from receiving income from the crypto industry, adding a corresponding amendment to the CLARITY Act.
My comment: This story is yet another reminder that memecoins, especially those tied to public figures, are extremely high-risk instruments. Retail investors chasing quick profits often become liquidity for insiders and early buyers. Regulatory pressure on such projects will only intensify, and the current situation with TRUMP could become a catalyst for stricter rules in this area.