$TRUMP meme coin creators reaped millions—while 760,000 investors lost money

The creators of the $TRUMP meme coin have reportedly made about $324 million from trading fees, while 760,000 investors are estimated to have lost money on the token, an analysis by Chainalysis found.

The $TRUMP meme token was launched in January ahead of Donald Trump’s 2024 presidential bid. It saw a surge in activity on January 11, with its price soaring 300% to $36 at one point from its launch price of $9.

Its market cap also went over $14 billion at one point, CoinMarketCap data showed. However, the token was trading at $11.3 with a market cap of $11.3 billion on May 8, indicating a major drop from its initial price and market cap.

Majority of investors suffered losses

According to a CNBC report, which cited data from Chainalysis, most of the 764,000 wallets that purchased the $TRUMP meme coin were small users who lost money on the token.

However, about 58 users made almost $10 million each, which took their total profits to around $1.1 billion.

The report also found that Donald Trump-affiliated CIC Digital and Fight Fight Fight own nearly 80% of the US president’s namesake coins.

Insiders reportedly making substantial revenue from $TRUMP

Insiders are generating “substantial revenue” despite having no ownership over the $TRUMP meme coin or its code due to the token’s structure and plain code, stated a report by CNBC, which cited an analysis by blockchain analytics firm Chainalysis.

The report found that the token’s code automatically sends a portion of every transaction to these addresses.

Since its launch in January, more than $324 million in trading fees have been funneled to wallets linked to the creators of this memecoin, Chainalysis data shows.

Earlier this month, the creators of the $TRUMP meme coin launched a contest for its top 220 holders.

Announced on May 2, the contest will see the top 25 wallets receive an invitation for a private dinner with Donald Trump on May 22 at the Trump National Golf Club in Washington DC, and possibly a VIP tour of the White House.

The announcement saw a surge in sales for the token as its price jumped by 50% over the past 24 hours, at the time of press.

The contest also saw participation from as many as 54,000 wallets who bought the $TRUMP meme coin.

The promotion strategy has sparked calls to scrutinize “conflict of interest” probes into Donald Trump’s presidency.

Democrats on the Senate Banking Committee are pushing to include an amendment to a wide-ranging bill that would bar Trump from profiting off his meme coin and other cryptocurrencies.

The lawmakers are also launching an investigation into the ownership of the $TRUMP token and its revenue model.

The move comes after the Republican presidential candidate announced the launch of his own meme coin, which sold out within 24 hours.