$3.8 billion in losses: Nearly a million investors in the TRUMP memecoin are in the red
The meme coin market, as always, is full of drama, and the TRUMP token is no exception. As of the end of June, approximately 989,000 investors who purchased this asset recorded total losses of $3.81 billion. This is a classic example of how hype around a high-profile name turns into a financial disaster for retail traders.
Roughly two-thirds of all token holders have either already sold at a loss or continue to hold the asset while watching its price decline. At the time of analysis, TRUMP was trading at $1.76, which is 97% below its all-time high of $75.35. This trend is a clear signal that the project overheated at launch, and the subsequent correction was inevitable.
Who made money on the token?
Despite the overall negative backdrop, about 500,000 wallets managed to realize a total profit of nearly $4 billion. However, as the data shows, these gains were concentrated in the hands of a narrow group of early buyers and algorithmic traders. The vast majority of retail investors, as often happens, entered the market at its peak, when growth had already been exhausted. This once again confirms the old adage: those who get in first make money on meme coins, not those who succumb to the hype.
Organizers' profits and risks for Trump
It is important to understand that the token holders' losses did not affect the project's creators. The organizers earned $636 million solely from trading fees, regardless of the price direction. This structure makes the project profitable for issuers but extremely risky for participants. Moreover, after its launch in January 2025, the asset was actively promoted on social media, attracting many supporters who lacked sufficient financial literacy.
Lawyers are already warning that after the current political term ends, class-action lawsuits from affected investors are possible. Even the standard disclaimers on the token's website stating that it is not an investment vehicle are unlikely to provide reliable protection, given the scale of promotion and the involvement of public figures.
My conclusion: The TRUMP story is not just another meme coin bubble but a clear lesson in how a political brand can be used to redistribute capital from retail investors to early participants. While the masses lose billions, the project's organizers remain in profit, calling into question the ethics of such launches.