Nearly 1 million people lost more than $3.8 billion investing in President Donald Trump's memecoin, according to cryptocurrency analytics firm Nansen, as reported by the New York Times on Saturday. The $TRUMP token collapsed 97 percent from its peak of $75.35 to $1.76 by Friday, wiping out investors who bought near the top.
Trump unveiled the memecoin three days before his January 2025 inauguration. The mechanics gave him a built-in advantage: he profited whenever tokens changed hands, regardless of whether the price rose or fell. Since returning to the White House, Trump has made $2.2 billion from his businesses overall. The memecoin's transaction-based revenue model meant losses for retail buyers translated directly to presidential gain.
Nansen identified 988,905 token buyers in its analysis through June. One trader, Nicholas Pinto, estimated his own losses at roughly $500,000. Pinto had voted for Trump in 2024. "He is leveraging the power of being president to launch currencies, when he seems trustworthy in the public's eye," Pinto told the Times. "It is almost a legal scam."
The token's design mirrors a known pattern in cryptocurrency markets: insiders (in this case, the sitting president) structure deals so they earn fees on volume rather than betting solely on price appreciation. Retail traders absorb the downside risk while founders and early holders extract value through transaction royalties.
A representative for the $TRUMP memecoin did not respond to the Times' request for comment. No regulatory agency has yet announced an investigation or enforcement action related to the token launch.