Donald Trump’s memecoin, $TRUMP, has sparked controversy over its rapid rise and fall in value. According to an analysis by The New York Times, early investors earned significant profits while over 810,000 crypto wallets lost a combined $2 billion.
The coin was launched with an initial price of 18 cents and quickly rose in value, allowing some traders to rake in substantial profits. However, its crash caused widespread losses among investors.
New York regulators had earlier issued a warning about “pump-and-dump schemes,” where prices are artificially inflated before being sold at a higher price. Forensic firms Nansen and Chainalysis analyzed $TRUMP transaction records and found instances of such schemes.
The Trump family and their partners have earned around $100 million in trading fees, mostly unclaimed. The coin is owned by 80% by CIC Digital LLC, an affiliate of The Trump Organization.
Public Citizen has asked the Department of Justice and Office of Government Ethics to investigate potential violations by Trump related to promoting the coin and encouraging his followers to buy it. Critics argue that the promotion could be seen as soliciting gifts from foreign governments, which is prohibited by federal law.
The investigation comes as $TRUMP’s value dropped significantly since its peak, with some investors losing millions of dollars. The coin’s collapse has raised concerns about the lack of transparency and regulatory oversight in the cryptocurrency industry.
Source: https://www.rollingstone.com/politics/politics-news/trump-meme-coin-2-billion-ls-1235261422