The launch of the official Trump meme coin has sparked controversy as insiders reportedly profited heavily while most investors suffered significant losses. Currently trading around $16.50, down from its initial peak of $75, the coin’s decline has left many latecomers with substantial losses.
According to a report from The New York Times, the Trump family and associated partners earned nearly $100 million in trading fees, with much of it still untapped. This surge in profits comes just days after the coin’s release, raising questions about potential insider trading or a “pump-and-dump” scheme.
The meme coin was introduced by Trump just days before his presidential inauguration, capitalizing on the MAGA brand that has already been monetized through merchandise such as hats, NFTs, and even bibles. As meme coins continue to dominate the crypto market, Trump’s coin entered a volatile environment where prices are often inflated by insiders before a sharp crash leaves investors at a loss.
Despite no concrete evidence of manipulation by Trump or his associates, research from Nansen, Chainalysis, and independent researcher Molly White indicates suspicious trading patterns. One anonymous account purchased over $1 million in $TRUMP just hours before the coin’s official launch, later profiting $109 million from its sale. Other early traders followed suit, amassing significant gains. In total, 31 traders made $669 million in profits in just a few days.
However, the overwhelming majority of investors have not been so fortunate. Data reveals that 813,294 wallets have faced collective losses of $2 billion, as many either sold at a loss or continue to hold depreciating tokens.
Despite the backlash surrounding the coin, the Trump family remains undeterred, with plans for additional ventures such as TruthFi, an investment platform aimed at providing an alternative to “woke funds.”
The launch of the Trump meme coin has stirred debate over the ethics of celebrity-backed cryptocurrencies, with critics pointing to the potential for exploitation. For now, the aftermath remains a cautionary tale for investors in the unpredictable world of meme coins.
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