The meme coin market is once again demonstrating its ruthless nature, and this time the token linked to the name of the U.S. president is at the epicenter. My analysis of fresh data shows that as of the end of June, approximately 989,000 investors who purchased the TRUMP meme coin recorded losses. The total losses of this pool of holders reached a staggering $3.81 billion.
The numbers are telling: roughly two-thirds of all token buyers either sold the asset at a loss or continue to hold it with unrealized losses. By the end of June, the coin was trading at $1.76, representing a colossal 97% drop from its all-time high of $75.35. This is a classic example of a "pump and dump" on a scale rarely seen even in the crypto world.
Who profited from TRUMP?
However, as is often the case, not everyone ended up losing. About 500,000 wallets managed to realize total profits approaching $4 billion. But here's the key nuance: the gains were extremely concentrated. The main benefit was reaped by a small group of early buyers and algorithmic traders who entered positions before or during the rapid surge. The vast majority of retail investors, caught up in the hype, entered the market at the peak, when growth was nearly exhausted.
Risk-free earnings: how the project organizers bypassed the downturn
My analysis of the project's financial statements shows that President Donald Trump and his team found themselves in a win-win situation. Unlike ordinary holders, they profited from the project regardless of the token's price dynamics. According to the published financial disclosure, revenue from the meme coin amounted to $636 million. The secret is simple: the organizers collected a fee on every trade. Even when the price crashed, trading volumes remained high, generating a steady stream of commissions.
Political backdrop and risks for the Trump family
It is worth noting that after the token's launch in January 2025, Trump actively promoted it on his social media, urging supporters to join the "TRUMP community." The White House, in turn, denies allegations of profiting at the expense of investors, claiming that the administration's policy is aimed at developing the U.S. as a global crypto hub.
In addition to TRUMP, the Trump family is involved in the World Liberty Financial (WLFI) project. And here the situation is similar: out of more than 26,000 analyzed wallets, about 85% of WLFI token holders also incurred losses.
Legal prospects: are class-action lawsuits inevitable?
Lawyers surveyed agree that after the end of his presidential term, Trump may face a wave of class-action lawsuits from affected investors. The disclaimer on the meme coin's website stating that the token is not an investment vehicle is unlikely to serve as reliable protection in court. The situation is compounded by the fact that, according to New York University law professor Stephen Gillers, Trump, as a developer, "played on people's fantasies," and here he appears to have encouraged his supporters to make risky investments while personally profiting.
My expert conclusion
The TRUMP story is not just another meme coin failure. It is a vivid illustration of how political capital and fame can be used to create a financial bubble where the vast majority of participants inevitably lose money, while the organizers profit regardless of market conditions. In my view, this case will set a precedent for stricter regulation of meme coins, especially those promoted by public figures. Retail investors should remember: if an asset is advertised by a politician or celebrity, it is almost always a signal that you are the late-stage liquidity for early insiders.