Trump Earns $970 Million from Meme Coin; 1 Million Buyers Lose $5 Billion

Donald Trump's involvement with a "meme coin" has led to substantial financial losses for nearly a million investors, while the former president has reportedly profited significantly. The cryptocurrency, known as $TRUMP, has seen its value collapse, causing widespread financial distress among its buyers.

According to data analysis firm Nansen, cited by The New York Times, approximately 988,905 cryptocurrency accounts that purchased $TRUMP have incurred losses totaling over $3.81 billion. In stark contrast, Donald Trump is reported to have earned around $636 million from the meme coin since its launch last June.

Meme coins, unlike traditional cryptocurrencies like Bitcoin, often lack real-world utility and are characterized by high speculative risk. Trump's associated company issued one billion $TRUMP coins, releasing 200 million into the market shortly before his potential second inauguration, while retaining the remaining 800 million.

This structure ensures Trump benefits not only from the sale of the coins but also from transaction fees generated every time the coin is traded. The New York Times noted that Trump profits regardless of the coin's price fluctuations, capitalizing on trading volume. The $TRUMP coin has fallen dramatically from its peak price of $75.35, currently trading at $1.76, a 97% decrease.

Investors have expressed anger and frustration. Nicholas Pinto, who supported Trump in the 2024 election, stated he lost half of his $500,000 investment. "Issuing cryptocurrency that relies on the public's trust in presidential power is nothing short of a legal scam," Pinto said. Legal experts suggest that while the Securities and Exchange Commission may not pursue further investigations into meme coin trading after February 2025, Trump and his partners could face class-action lawsuits from disgruntled supporters.