Trump Coin turned a few early investors into millionaires while leaving most others with massive losses. In all this market chaos, the Trump family made over $100 million in trading fees of the $TRUMP memecoin.
On January 17, just minutes after Donald Trump announced the launch of the $TRUMP cryptocurrency, an early buyer scooped up nearly 6 million tokens at just 18 cents each.
Within two days, that move turned into a jaw-dropping $109 million profit. But as prices surged to $75 before crashing back to $17, over 810,000 investors collectively lost more than $2 billion.
According to a forensic analysis by Chainalysis, early holders wasted no time cashing out, leaving latecomers to take the hit. Experts compare it to classic pump-and-dump schemes, in which veteran traders bid up prices and cash out before normal investors are left in the red.
Meanwhile, with ordinary investors losing their savings, the Trump family and its partners reportedly pocketed nearly $100 million in trading fees. Critics are particularly alarmed given Trump’s moves to loosen cryptocurrency regulations.
Former SEC crypto adviser Corey Frayer accused Trump of engaging in “shady crypto schemes that harm investors” while putting regulators in place who could protect him from repercussions.
Frustrated investors haven’t held back. Shawn M. Whitson from North Carolina, once a proud supporter of the token, later called $TRUMP a “joke” after watching his investment tank.
Vaibhav Jha, the Head Editor at The Crypto Times, admitted he invested because of the hype but now regrets it. He says, “Now I am running into losses, and I have been told that Trump has made a lot of money from the token.”
He also added, “All I can wish now is that he spends my money well.”
A pseudonymous crypto trader managing millions had a blunt take: “Trump launched this token when memecoin hype was at peak and I don’t think he will make any mention regarding it in the future. TRUMP is no different than most memecoin which dies after initial launching days.”
The quick rise and fall of the Trump Coin is yet another cautionary tale about celebrity-backed cryptocurrencies. For most retail investors, the next question is, are these digital assets worth the risk?
Also Read: Crypto Trader Loses $21M After Profiting from TRUMP Memecoin
