The memecoin's creator, who made over $636 million from the token, also saw roughly two‑thirds of buyers suffer losses. Approximately 66% of buyers ended up losing money.
The Numbers Behind the Crash
The coin launched three days before President Trump's 2025 inauguration. At its peak, it traded for $75.35. On the Sunday of this article's publication, it was worth $1.69.
Who Made Money and Who Didn't
The Securities and Exchange Commission, now under the Trump administration, has said it will not treat memecoins as securities. It has also dropped multiple lawsuits against crypto firms. A White House spokesperson said, "President Trump proudly made the United States the crypto capital of the world."
Get your free investing masterclass bonus when you join Market Briefs, our free daily newsletter
Background and Broader Context
Before the memecoin, Trump and his sons had helped launch World Liberty Financial, a crypto venture whose $WLFI token likewise suffered a major price drop. That token plunged more than 90% within months of its debut, mirroring the collapse of the Trump coin and emphasizing the dangers of celebrity‑backed digital assets. The Trump family's involvement in both projects raises questions about the blending of political influence with speculative cryptocurrency markets, especially after the president's financial disclosure revealed his personal windfall from the memecoin.
The Trump memecoin was issued under the branding "TRUMP" and quickly drew interest from both supporters and speculators. The rapid rise and fall of this politically themed token exemplify the extreme volatility common among memecoins, where prices often rely on hype rather than fundamental value. With the SEC choosing not to classify such coins as securities, there is little regulatory oversight to protect retail investors from sharp price swings and potential rug pulls.
This regulatory vacuum, combined with the high-profile nature of the Trump brand, created a perfect storm for speculative frenzy. The massive losses suffered by nearly 1 million accounts underscore the risks of investing in assets driven by hype rather than fundamentals. Such events serve as a stark reminder that even politically connected tokens offer no guarantee of value.
Launched just days before the inauguration, the token attracted massive speculation from traders hoping for a continued rally tied to Trump's return to power, but the initial frenzy evaporated almost as quickly as it appeared. Similarly, the $WLFI token from World Liberty Financial experienced its own steep decline, reinforcing the pattern that politically themed tokens often follow a short‑lived hype cycle.
Worth Noting
While the SEC's hands‑off stance under the current administration may encourage more such tokens, the numbers from this single coin serve as a cautionary tale for anyone considering betting on politically themed digital assets.
Subscribe to Market Briefs, our free daily newsletter, and claim your bonus investing masterclass
