Donald Trump launched a memecoin, dubbed Official Trump with the TRUMP ticker, over the weekend, which briefly became the second-biggest meme token in crypto history with a market value exceeding $14 billion shortly after its launch.
The frenzy and early winners
A frenzied scramble of buying from sophisticated trading bots and insiders propelled its value rapidly. Several investors made millions during the initial trading hours. One early investor traded $1 million for nearly 6 million Trump coins and is currently sitting on $304 million in unrealised profits. This investor also transferred some tokens to other wallets for sale on the market. Another significant early buyer invested around $1 million and holds $78 million in unrealised profits, having sold a small portion of their Trump holdings for $1.7 million.
Despite initial skepticism regarding the token’s legitimacy, traders began investing as it gained viral status on social media. However, the rapid rise was followed by a steep decline, with market value sliding over 52% within one hour. Currently, the token’s worth has recovered somewhat but remains approximately 30% off its peak market value, sitting at around $10 billion. Trump’s memecoin is now the third-biggest meme token in cryptocurrency, trailing Dogecoin at $54 billion and Shiba Inu at $12 billion.
The subsequent slump in value coincided with the launch of Melania Trump’s own memecoin, which peaked at nearly $2 billion. This new token likely siphoned liquidity from Trump’s memecoin as traders sought to invest early in the latest offering from the Trump family. Onchain data showed a rotation of profits from the Trump token to Melania’s shortly after her coin’s release.
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Reactions are mixed
Late investors in the Trump memecoin faced significant losses amid the price decline. One trader lost $6.4 million on an initial investment of $25.7 million, selling most of their holdings following the drop. Another trader reported a $5 million loss on a $17.8 million investment, having sold 82% of their Trump token assets at a loss.
The volatile world of $TRUMP coin has created both euphoria and despair among traders, as evidenced by the polarizing reactions on X. Some users are basking in newfound wealth, while others are left grappling with devastating losses.
One user, Greg (@greg16676935420), expressed the depths of his misfortune: “I just lost every last dollar I had ($37.28) buying the Trump and Melania crypto coins. I’m literally shaking and throwing up right now.” His experience is a stark reminder of the risks involved in speculative trading.
In contrast, others are riding high on staggering gains. The Kobeissi Letter (@KobeissiLetter) highlighted one trader’s remarkable success: “This trader bought a total of $308,800 of $TRUMP coin. Their current unrealized gain is $34.9 MILLION. They have also already cashed out $3.6 million in profit. This volatility is HIGHLY risky.” While the numbers are jaw-dropping, the cautionary note about the volatility adds a sobering perspective.
The coin’s meteoric rise has also reportedly boosted Donald Trump’s fortune. According to The Kobeissi Letter, “Donald Trump has seen a 400% increase in net worth since the launch. This puts his net worth at ~$28 billion, up from $5.6 billion in November 2024. Of course, most of this is in illiquid assets as he is currently in the lock-up period.”
Amid this chaos, some users are celebrating life-changing gains. Roshi (@roshicrypto8) tweeted, “500+ people became millionaires with $TRUMP coin. Literally nuts.”
The $TRUMP coin phenomenon has clearly divided its traders into two camps: winners reaping fortunes and losers lamenting their risks. As the crypto frenzy continues, it’s evident that this digital currency carries both tremendous potential and equally high stakes.
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Crypto traders awaited Trump’s inauguration speech with anticipation and were disappointed when he did not mention cryptocurrency in a 30-minute outline of his policy priorities. Following the speech, Trump’s official memecoin dropped 25% in one hour to a low of $38, before recovering slightly to around $41, maintaining a total value of $8.2 billion at the time of reporting. The crypto markets also reacted, with Bitcoin dropping 5% in that hour before trading around $103,000.
Trump’s entry into the cryptocurrency scene marks a significant shift, especially considering his prior statements labeling Bitcoin as “a scam against the dollar.” As the crypto industry invested heavily in the 2024 elections, more than $130 million flowed into federal ballots. Trump began courting industry executives, stating that supporters of crypto should vote for him. He has since made promises to create a U.S. Bitcoin strategic reserve and launched his DeFi platform, World Liberty Financial, which aims to act as a stablecoin issuer.
World Liberty Financial managed to sell 20 billion tokens just hours before Trump’s inauguration. The launch of these presidential meme tokens illustrates the volatile nature of cryptocurrencies, with the $TRUMP token experiencing price fluctuations that erased approximately $7.5 billion in market value shortly after the debut of the $MELANIA token.
This emergence of politically linked tokens raises regulatory questions. Analysts indicate that the situation could represent significant conflicts of interest given Trump’s role in regulating the crypto industry while being directly linked to these speculative assets. World Liberty Financial also recently converted $20 million worth of USDC into Ethereum, indicating a strategic investment approach as they begin to establish a foothold in the crypto landscape.
As World Liberty Financial’s portfolio grows, it currently holds $327.6 million in crypto, notably including 57,000 ETH valued around $184 million. The company also retains substantial stablecoin assets and token holdings in key DeFi protocols. This strategic positioning suggests potential plans for advanced financial products.
Featured image credit: Kerem Gülen/Ideogram
