813,000 Investors Caught in the Trump Memecoin Meltdown

In a world where finance and politics are increasingly intertwined, the launch of the Trump memecoin by Donald Trump and his sons has caused a shockwave in the markets. What could have been a crypto branding operation turned into a brutal game of musical chairs, where the early birds pocketed hundreds of millions of dollars, leaving behind a tide of disappointed losers. In just a few hours, savvy traders multiplied their bets exponentially, benefiting from a speculative surge that propelled the token’s price to $75 before it collapsed. While the phenomenon of memecoins is not new, Donald Trump’s direct involvement raises questions about ethics, regulation, and the future of political cryptos.

A winning move for a few privileged ones

Just seconds after Donald Trump announced on social media the launch of the Trump memecoin, an anonymous investor placed a colossal bet of $1.1 million, acquiring 5.9 million tokens at an entry price of 18 cents. This transaction, recorded on the blockchain, turned out to be an incredibly profitable maneuver. Within 48 hours, this investor raked in $109 million. Thus, he surfed on a spectacular rise in the token’s price.

This phenomenon was not limited to a single actor. About thirty quick traders snatched up $669 million in just a few days, thanks to the application of a well-honed strategy on this type of volatile assets. This mechanism is well known: initial buyers massively accumulate tokens at low prices, trigger a wave of speculation, then liquidate their holdings at stratospheric levels, leaving behind a horde of investors trapped at far too high prices.

A financial shipwreck for the majority of investors

As the Trump token peaked at $75, the fall was brutal. Within a few days, its price dropped to $17, causing colossal losses for the vast majority of crypto investors. 813,000 wallets recorded cumulative losses exceeding $2 billion.

The story is familiar to observers of the crypto market. This massive sell-off orchestrated by early buyers hastened the debacle. Such a situation left thousands of investors, sometimes ardent Trump supporters, with devalued assets. “This token is a joke,” stated in a post on the X social network (formerly Twitter) Shawn M. Whitson, a disappointed investor, after seeing his investment evaporate in just a few days.

Beyond financial losses, this fiasco sheds light on the risks of manipulation in crypto markets and the lack of regulation surrounding these new forms of speculation. While Donald Trump and his associates have already raked in $100 million in transaction fees, the question of ethics and the exploitation of small crypto investors becomes central. Moreover, as the Trump administration seeks to ease regulation in the sector, voices are rising to denounce a collusion between the president’s personal interests and upcoming political decisions on cryptos. This episode thus perfectly illustrates the thin line between financial opportunity and economic predation in a market where speed takes precedence over caution.