President Donald Trump’s memecoin, $TRUMP, has suffered a catastrophic crash since its launch on January 17, resulting in losses of over $2 billion for investors. The coin’s value plummeted from a peak of nearly $75 per share to around $16 per share today.
A total of 813,294 wallets holding cryptocurrency lost money through ownership of the token’s shares in just 19 days, with an estimated $100 million in trading fees generated by the Trump Organization and its partners. The majority of this fee went to CIC Digital, an affiliate of the Trump Organization.
The Trump family’s massive stake in the meme token has raised concerns about the coin’s value being manipulated for business and diplomatic purposes. Finance experts describe $TRUMP as a “pure bubble” with no inherent value beyond what other people are willing to pay for it.
Critics argue that the Trump Organization took advantage of the impending inauguration to make money from its memecoin, creating potential conflicts of interest and violating regulations prohibiting gifts from the public. The incident has sparked calls for an investigation by consumer advocacy groups and government agencies.
The incident highlights the risks associated with investing in meme coins and the importance of due diligence when engaging with such investments.
Source: https://fortune.com/2025/02/11/trump-memecoin-traders-2-billion-dollar-loss-family-100-million-fees