Early investors in the $Trump cryptocurrency scored massive profits in January while hundreds of thousands of later buyers faced substantial losses, according to recent analysis.
Just minutes after Donald Trump announced his family's cryptocurrency on social media, an unknown trader invested over $1 million to purchase nearly 6 million tokens at the opening price of 18 cents each. As the price surged to $75 per token, this early investor potentially gained up to $109 million in profit within just two days.
However, the swift profits for early traders, some reportedly based in China, came at a heavy cost to subsequent investors. Over 810,000 crypto wallets have collectively lost more than $2 billion after the token's value plummeted. The current price hovers around $17, less than a quarter of its peak value.
The Trump family and partners have collected nearly $100 million in trading fees, though most remains uncashed according to data from crypto forensics firm Chainalysis. CIC Digital LLC, an affiliate of The Trump Organization, and Fight Fight Fight LLC control 80% of the meme coins.
When questioned about the cryptocurrency, Trump claimed limited knowledge, stating "I don't know much about it other than I launched it." He added that he had heard it was "very successful" but hadn't checked its performance.
Consumer advocacy group Public Citizen has requested investigations from the Department of Justice and Office of Government Ethics regarding potential violations of federal regulations and the Constitution's Emolument Clause related to Trump's promotion of the coin.
The dramatic price swings and massive losses have left many investors disappointed. One Trump supporter who initially posted enthusiastic messages about the coin later expressed frustration, declaring "Done with this $Trump crap" after selling their holdings at a fraction of the peak value.