While Trump’s memecoin caused investors to lose billions of dollars, Trump Organization and its partners made millions during this process. The total loss of more than 813,000 wallets investing in Trumpcoin exceeded $2 billion, and the token’s market value plummeted to a quarter of its peak. The memecoin launched under the name of US President Donald Trump resulted in significant losses for investors, yet it brought millions to Trump Organization and its partners. According to data from blockchain analysis company Chainalysis hired by The New York Times to investigate the matter, over 813,000 cryptocurrency wallets investing in the $TRUMP token suffered a combined loss of over $2 billion within three weeks after the launch. However, Trump Organization and affiliated entities earned approximately $100 million in transaction fees during this process.

Massive Collapse: From $75 to $16
Released on January 17th, $TRUMP initially gained attention with a quick rise. The token reached $75 on January 19th, pushing its market value to $14.75 billion, but this peak was short-lived. Experiencing a steep decline within a few weeks, the memecoin is currently trading around $16. Its market value also dropped to $3.72 billion, decreasing to a quarter of its previous value. Despite investors suffering significant losses, Trump Organization and partners made substantial gains during this decline. According to Chainalysis, for every $1 transaction fee in the Trump crypto ecosystem, investors incurred a $20 loss. However, the majority of this $100 million transaction fee has not been converted into cash yet.

Early Investors’ Big Gains
Considered a speculative bubble, some investors in the $TRUMP token made significant profits. A shareholder who bought approximately 6 million tokens at 18 cents on the first trading day sold his assets within two days, generating a profit of $109 million. However, such high profits were not valid for the majority. Many investors suffered losses due to buying the token at high levels before its sharp drop.

“Memecoins Have No Real Value”
Trump’s speculative digital currency, described as memecoin, is not the only asset in the cryptocurrency market causing investors to face significant losses in a short period. Leonard Kostovetsky, a finance professor at the Zicklin School of Business, stated in an interview with Fortune last month that memecoins have no real value and are considered purely speculative bubbles. Trump promoting memecoin through his social media platform X also ignited ethical debates. Consumer rights advocacy group, Public Citizen, filed complaints with the Department of Justice and the US Government Ethics Office, requesting an investigation into whether Trump requested illegal gifts through memecoin. Former Chairman of the US Commodity Futures Trading Commission and senior member of Harvard University, Timothy Massad, suggested that states and large corporations could indirectly provide financial support to Trump by buying $TRUMP tokens to establish good relations with the Trump administration. In a statement to CNBC, he noted, “It is evident that Trump Organization exploited this project as an opportunity before the inauguration. This could open the door to conflicts of interest not only in the past but also in the future.”