Trump Memecoin Craze: Investors Lose $2 Billion in Speculation

TRUMP coin went live on the Solana-based platform Pump.fun on January 17. In an X post announcing the coin, Donald Trump said it aims to celebrate wins with the community.

$TRUMP took off quickly, starting at $0.18 and hitting a record high of $75.35 before crashing. At the time of writing, the coin trades at around $15.39, 79% down from its all-time high, according to CoinMarketCap.

How TRUMP Coin Fluctuations Impacted Investors 

Recently, The New York Times teamed up with Chainalysis to find out how $TRUMP coin investors have fared and how much Trump profited from the coin.

On-chain analysis showed that by February 9, more than 810,000 wallets had lost money on the memecoin. However, the actual number is much larger, since the data didn’t include transactions on many platforms that listed $TRUMP after the price increase.

Meanwhile, early traders made large gains, with one of them profiting $109 million in two days, according to The New York Times. However, the amount of losses far outweigh the gains. In total, investors have lost $2 billion as the token crashed.

Trump himself made nearly $100 million in trading fees, which hasn’t been cashed out yet.

Criticism Toward the $TRUMP Coin 

$TRUMP coin has faced criticism from politicians, investors, and, interestingly, crypto community members as well. Popular blockchain investigator ZachXBT was among the early critics, sharing a meme saying, “make crime great again.”

In a recent hearing, Senator Al Green expressed concerns that TRUMP poses risks related not only to investor protection but also to security and anti-corruption laws, as anyone could transfer money to the President for unknown purposes.

Former crypto adviser to the SEC (Securities and Exchange Commission), Corey Frayer, also criticized Trump. He mentioned the president’s policy to create a crypto-friendly environment with clear rules and fewer barriers.

The president is participating in shady crypto schemes that harm investors while at the same time appointing financial regulators who will roll back protections for victims and who may insulate him and his family from enforcement,

– Foray said.

Is TRUMP Coin Good for Making Crypto Mainstream? 

With the president’s name behind it, $TRUMP has attracted new crypto investors. However, its value and long-term impact remain uncertain. While it could introduce crypto to a wider audience, its speculative nature might fuel skepticism rather than stabilize the market.

Another key aspect is Trump’s policy on crypto regulations. While he can launch a memecoin on his own, clear industry rules require cooperation from Congress and regulatory agencies.

In January 2025, a Crypto Task Force was created to tackle regulatory challenges within the industry.

Regardless of $TRUMP's role, it’s important to remember that the crypto sector is much broader, so judging it – and new presidential policies – based solely on it might not be the best approach.