The $TRUMP cryptocurrency has created a small group of winners and a vast sea of losers

The $TRUMP cryptocurrency has created a small group of winners and a vast sea of losers, with new data showing approximately 764000 wallets have lost money on the controversial token, according to blockchain analytics firm Chainalysis as reported by CNBC.

A cryptocurrency bearing former President Donald Trump's name and likeness has generated substantial gains for a small group, while leaving a large number of investors with losses, according to a report by Chainalysis.

The analysis, which focused on the $TRUMP token, revealed that 58 wallets have each earned over $10 million in profits, while the majority of wallets experienced decreases in their investments.

The report, cited by CNBC, highlighted that most wallets suffering losses hold relatively small amounts of the token. These retail investors, who typically lack the technical expertise or market connections to time their entries and exits effectively, are the ones who have seen their investments decline.

The token, which is a rebranding of the project formerly known as "Trump Pay," reached a peak market cap of $2.7 billion. This surge followed promotional posts from President Trump on Truth Social and X (formerly Twitter), where he encouraged investment in the token.

However, the token's price has since pulled back, reducing the market cap to $2.17 billion and leaving those who bought the token at higher prices with unclosed positions or losses.

Despite the widespread losses and the ongoing investigation by lawmakers into potential conflicts of interest surrounding the token, new investors continue to enter the market.

Since mid-April, approximately 100,000 new wallets have begun purchasing the $TRUMP token. This persistent interest is evident even as Democratic lawmakers probe the token, which directs 75% of revenue from a related crypto venture to the Trump family.

The distribution structure of the token has also raised concerns among ethics experts. According to reports, 80% of the token's supply is held by entities connected to the Trump Organization, with a three-year vesting schedule. Additionally, an incredible $324 million in trading fees has already been routed to project creators through code embedded in the token's transactions.

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