- More than 813,000 crypto wallets have lost a total of $2 billion after buying President Donald Trump’s memecoin, according to an assessment by Chainalysis commissioned by the New York Times. Meanwhile, the Trump Organization and its partners gained $100 million in trading fees. Since its Jan. 17 launch, $TRUMP has lost most of its value, which is now about $16 per share, down from its $75 peak.
Less than three weeks after its release, President Donald Trump’s memecoin has produced more losers than winners. For every dollar in trading fees the Trump crypto creators raked in, investors lost $20.
A total of 813,294 wallets holding cryptocurrency lost money through ownership of $TRUMP meme token shares in the 19 days since its launch, according to an analysis by cryptocurrency forensics company Chainalysis commissioned by the New York Times. The losses—accumulated as users either held onto shares of the coin as its value plummeted, or because they sold shares at a loss—totaled about $2 billion.
A total of 813,294 wallets holding cryptocurrency lost money through ownership of $TRUMP meme token shares in the 19 days since its launch, according to an analysis by cryptocurrency forensics company Chainalysis commissioned by the New York Times. The losses—accumulated as users either held onto shares of the coin as its value plummeted, or because they sold shares at a loss—totaled about $2 billion.
Launched on Jan. 17, days before Trump’s inauguration, $TRUMP initially skyrocketed in value, peaking on Jan. 19 at nearly $75 per share with a market capitalization of more than $14.75 billion before crashing days later. Today, the memecoin hovers above $16 a share with a market cap of $3.72 billion, about a quarter of its value at its apex. (...)
A perfect ethical storm
The Trump family’s massive stake in a meme token known for its volatile status has raised concerns $TRUMP is both unethical and almost certain to baffle less sophisticated retail investors, according to some finance experts.
“In terms of investors, of course there’s a huge red flag,” Leonard Kostovetsky, associate professor of finance at Baruch College’s Zicklin School of Business, told Fortune last month. “All of these memecoins don’t really have any value beyond just what other people are willing to pay for them. They’re pure bubbles.”
Should the Trump Organization sell its stake in the coin, it would still stand to make billions from the transaction but douse the value of the token in cold water by extension. Beyond concerns of a rug pull and more losses for investors, the Trump family’s ownership of the token has others sounding alarms about conflicts of interest and how the currency could be manipulated in business and diplomacy.
by Sasha Rogelberg, Fortune | Read more:
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