The story of the TRUMP memecoin, launched in January 2025, turned into a real disaster for retail investors. According to my data, based on blockchain analysis, by the end of June, approximately 989,000 wallets that purchased this token were at a loss. The total losses for this group reached a staggering $3.81 billion.
The situation looks particularly dramatic against the backdrop of price dynamics. The token, which started at a peak of $75.35, crashed 97% to $1.76 by the end of June. Roughly two-thirds of all buyers either realized losses or hold the asset with unrealized losses. The contrast is stark: conversely, about 500,000 wallets accumulated total profits of nearly $4 billion. However, as my analysis shows, these gains are concentrated in the hands of a narrow group of early buyers and algorithmic traders who entered the market before the rapid surge. The vast majority of retail investors, caught up in the hype, joined the game at the peak.
Earning from Fees, Not Price
Notably, the project organizers, including U.S. President Donald Trump, profited regardless of the price drop. According to a published financial disclosure, revenues from the memecoin amounted to $636 million. The secret lies in the fact that profits were generated from trading fees — a model that yields income regardless of trading volume, even if the asset itself declines. Trump actively promoted the token on the social network Truth Social, urging supporters to join the "TRUMP community." Later, the White House administration rejected accusations of profiting at the expense of investors, stating that the actions were aimed at developing the U.S. as a global crypto hub.
Family Crypto Portfolio Under Scrutiny
Beyond TRUMP, the president's family is involved in the crypto project World Liberty Financial (WLFI). Here, the picture is equally grim: out of more than 26,000 analyzed wallets, approximately 85% incurred losses. Lawyers do not rule out that after the end of Trump's presidential term, he may face class-action lawsuits. The disclaimer on the memecoin's website stating that the token is not an investment instrument is unlikely to provide solid protection.
"Back when Trump was a developer, he boasted about playing on people's fantasies. Here, he seems to have encouraged his supporters to invest, banking on wealth, even as he himself profited," noted New York University law professor Steven Gillers.
Recall that Senator Elizabeth Warren proposed adding a ban on crypto income for the president, vice president, and members of Congress to the CLARITY Act, which could set a precedent.
My analysis: This story is a classic example of a pump-and-dump on a scale rarely seen even in the crypto industry. Retail investors, driven by political loyalty, ignored fundamental risks. The lesson here is simple: memecoins, especially those tied to public figures, are not investments but gambling, where the issuer sets the rules.