According to a Chainalysis survey, hundreds of thousands of small investors who bought $TRUMP, the U.S. president’s cryptocurrency, have lost their money. More than 764,000 wallets that invested in the coin are now in the red while only 58 wallets–all linked to Trump’s entourage–collectively made more than $1 billion.
According to the survey, most of the wallets that lost money contained smaller amounts of tokens. The $TRUMP token, whose popularity has increased since the Republican leader’s second term began, has experienced sharp price swings and very erratic returns for investors. Fight Fight Fight LLC. and CIC Digital LLC. control most of the token’s offerings: both are controlled by the Trump Organization.
The cryptocurrency has attracted the attention of regulators in recent times. Lawmakers are now formally investigating whether $TRUMP and a related cryptocurrency company called World Liberty Financial, which sends 75 percent of revenue to the Trump family, constitute a direct conflict of interest for the president. The Senate Permanent Subcommittee on Investigations has launched an investigation into the token’s ownership structure and revenue model. The hearing was originally meant to discuss digital asset regulations, but tensions escalated when Rep. Maxine Waters (D-CA) and other Democrats objected to Trump’s crypto ventures, arguing that he was profiting from the sector while in office.
Launched in January ahead of Trump’s second inauguration, the token’s value initially soared to $15 billion after a series of promotional posts by the president on Truth Social and X. However, memecoin lost most of that value within days. Only 20 percent of the token’s total supply is currently in circulation. The remaining 80 percent-reportedly controlled by the Trump Organization and affiliated entities-is tied up in a three-year maturation program.
The $TRUMP returned to the spotlight two weeks ago, when the U.S. president announced that he would hold a private dinner at his golf club in Virginia and a visit to the White House for the top 220 people invested in his cryptocurrency. On the memecoin website, promoters of the event, scheduled for May 22, have created a ranking of the top investors in the coin. The top 25 buyers will win access to a reception with the MAGA leader before the dinner, and a V.I.P. tour of the White House.
The enthusiasm generated by the initiative has pushed the token’s market capitalization to $2.7 billion, with some 54,000 wallets deciding to buy the coin.
