Nearly one million investors have lost billions of dollars purchasing a cryptocurrency memecoin associated with former President Donald Trump, according to data from cryptocurrency analytics firm Nansen. The losses, which total approximately $3.81 billion as of the end of June, have raised questions about the role of political influence in the crypto market and regulatory oversight.
The $TRUMP memecoin, launched just days before Trump’s inauguration in early 2025, initially surged from under $1 to a peak of $75.35 but has since plummeted by 97 percent, trading around $1.76 as of late June. Nansen’s analysis indicates that roughly two-thirds of the nearly 1.5 million wallets that purchased the coin have lost money, highlighting the disparity between early investors who profited and the majority who faced significant losses.
Trump himself reportedly benefited financially from the memecoin. His 2025 annual financial disclosure indicated a $636 million payout tied to crypto ventures including the $TRUMP coin. Trump and his sons also founded World Liberty Financial, a crypto startup that issued another token called $WLFI, which has experienced a similar steep decline. Trump’s total earnings from these ventures last year are estimated at $2.2 billion.
The business model allowed Trump to profit regardless of the coin’s price movement. He earned returns whenever the token was traded, a dynamic fueled by his public promotions of the coin on social media, including his Truth Social platform. Critics argue this created a scenario in which Trump capitalized on his influence, encouraging followers to invest while reaping personal financial rewards.
Nicholas Pinto, a crypto trader and Trump supporter, said he invested about $500,000 in $TRUMP coins and lost approximately half his investment. Pinto described the situation as “almost a legal scam,” noting that Trump leveraged his public trust to promote the currency.
While some investors benefitted from early purchases before the coin’s price surged, the majority absorbed losses as the cryptocurrency market cooled. Of the nearly 500,000 wallets that showed profits, gains totaled $4 billion, driven largely by early buyers and sophisticated traders proficient in automated crypto transactions. However, these substantial profits came at the expense of the broader retail investor base.
World Liberty Financial’s $WLFI token sales have also seen significant losses, with an estimated 85 percent of tracked wallets recording losses as prices dropped about 82 percent since its wider availability in late 2024. The company attributed the $WLFI decline to broader market trends affecting Bitcoin and other cryptocurrencies.
Regulatory oversight of these crypto ventures has been limited. Since taking office, Trump and his administration relaxed some crypto regulations. White House spokeswoman Anna Kelly defended the administration’s policies, stating that efforts were “in the best interest of the American people.” The SEC announced in early 2024 that it would reduce its focus on memecoin sales, further diminishing federal enforcement.
Legal experts say class action lawsuits from investors who suffered losses are possible, though such actions may depend on developments after Trump leaves office. Although the $TRUMP memecoin website cautioned that the token was not an investment vehicle but an expression of support, lawyers contend this warning may not be sufficient to prevent future legal challenges.
As the value of Trump-linked crypto ventures continues to erode, the incident underscores ongoing concerns about the intersection of political influence and speculative digital assets amid a largely deregulated marketplace.