$TRUMP meme coin creators reaped millions—while 760,000 investors lost money
What's the story
According to an analysis, nearly 764,000 investors who bought the $TRUMP meme token have lost money.
A handful of wallets, just 58 in total, earned over $1 billion collectively. The creators of this memecoin have allegedly made about $324 million in trading fees.
Launched in January, just days before Donald Trump's inauguration as US President, the token saw a spike in activity initially.
Market performance
Trading journey and current status
The $TRUMP meme coin surged by 300% hours after its launch, hitting $36 apiece.
Its market cap even crossed $14 billion at one point, CoinMarketCap data showed.
The token was trading at $11.3 with a market cap of $11.3 billion on May 8, reflecting a major drop from its initial price and market cap.
Investor impact
Majority of investors suffered losses
According to a CNBC report, citing data from Chainalysis, most of the 764,000 wallets that purchased the $TRUMP meme coin were small users.
However, nearly 58 users made almost $10 million each, which took their total profits to around $1.1 billion.
The report also found that Donald Trump-affiliated CIC Digital and Fight Fight Fight own nearly 80% of the US president's namesake coins.
Insider profits
Insiders reportedly making substantial revenue from $TRUMP
Insiders associated with the $TRUMP meme coin are reportedly generating "substantial revenue" despite vesting restrictions, according to CNBC.
This is because the token's code automatically sends a portion of every transaction to these addresses.
Since its launch in January, more than $324 million in trading fees have been funneled to wallets linked to the creators of this memecoin, Chainalysis data shows.
Promotion strategy
Meme coin creators offer dinner with Donald Trump
The creators of the $TRUMP memecoin recently launched a contest offering top 220 holders prizes.
These include a private dinner with Donald Trump for the top 25 wallets on May 22 at the Trump National Golf Club in Washington DC, and possibly a VIP tour of the White House.
The announcement led to a surge in sales for the token, causing its price to jump by 50%, with as many as 54,000 wallets participating.
Investigation
Calls for scrutiny of $TRUMP
The promotion strategy has triggered calls to scrutinize "conflict of interest" investigations into Donald Trump's presidency.
Democrats in the Senate Banking Committee are pushing to include legislation barring Trump from profiting off his meme coin and other cryptocurrencies.
They have also launched an investigation into the ownership of the $TRUMP token and its revenue model.