Over 58 cryptocurrency wallets raked in millions on Trump's meme currency, while a staggering 764,000 users experienced financial losses, according to available figures.
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Buddy, here's the lowdown on that $TRUMP meme coin. Approximately 764,000 wallets, who dove into the crypto pool with this Pres. Donald Trump branded token, have taken a hit in their investments, according to data shared with CNBC by blockchain analytics firm Chainalysis.
Now, listen up, 'cause this gets interesting. Most of these wallets that took a loss were loaded with smaller amounts of the token, as Chainalysis reported from their on-chain analysis. Fascinating, ain't it? You gotta remember, crypto wallets are like lockboxes for your digital currency.
Chainalysis also spilled the beans on the upside – around 2 million wallets jumped on the $TRUMP train, but 58 of them made a killing, pocketing more than $10 million each. That adds up to a whopping $1.1 billion in gains!
Now, the $TRUMP token got popular like a shot after it was associated with the kick-off of Trump's second term. The PE Institute, LLC, and CIC Digital LLC, own the majority of the token's supply. We've reached out to the PE Institute for their two cents on Chainalysis' figures, but haven't heard back yet.
Get this – the interest in this coin skyrocketed over 50% after the project's website promised the top 220 holders an exclusive dinner with the POTUS. Can you imagine that? The event's set for May 22 at Trump's Trump National Golf Club, Washington D.C. The invite list? A black-tie bash for the 25 wallets with the most coins, along with a White House tour.
The buzz around this dinner sent the token's market cap racing to $2.7 billion at its peak, but it's settled around $2.17 billion since then. New blood's been joining the crew – around 54,000 wallets have bought the coin since the event announcement, with approximately 100,000 new wallets loading up on $TRUMP since April 15, according to Chainalysis.
Yet, the Trump-branded meme token ain't catching a break. Regulators and ethics watchdogs are giving it the scrutiny it deserves, and lawmakers are digging into whether this coin and a related crypto venture called World Liberty Financial – that sends 75% of its revenue to the Trump family – is a conflict of interest for the President.
The Senate's Permanent Subcommittee on Investigations is looking into the token's ownership structure and revenue model, while House Democrats walked out on a crypto hearing in protest. The controversy centers around the dinner competition for top token holders, promotional posts from the President himself, and ties to foreign investors, such as a state-backed Emirati fund and crypto tycoon Justin Sun.
The token started rolling in January before Trump's second inauguration, and its value soared to $15 billion after a series of posts from the President on Truth Social and X. It dropped most of that value within days. Only 20% of the token's total supply is currently in circulation, with the remaining 80% – reportedly controlled by the Trump Organization and affiliated entities – locked under a three-year vesting schedule. Public disclosures reveal that insiders agreed not to sell their allocations for a few more months.
Despite these restrictions, insiders are still raking it in. They've collected over $324 million in trading fees since January, according to Chainalysis. Here's the kicker – the token's code automatically directs a cut of each transaction to these addresses, so the team can keep cashing in on the ongoing activity. Neat, huh?
Bonus Info
The Trump-branded meme coin generates revenue for insiders primarily through decentralized trading models and by focusing on high trading volumes rather than relying on the token's price. Key revenue streams include:
- Decentralized Trading Model: This setup facilitates transactions through liquidity pools, generating revenue from trading fees.
- Trading Fees from High Volume: The team's focus on maintaining high trading volume means they profit from constant activity on the token, regardless of its price.
- VIP Access and Events: Insiders capitalize on the token's popularity by organizing exclusive events, incentivizing trading activity and demand for the token.
- Reports suggest that the $TRUMP meme coin, associated with President Donald Trump, has reportedly seen volatility, with approximately 764,000 wallets experiencing losses in their crypto investments.
- Crypto wallets function as digital lockboxes for storing cryptocurrencies, and they played a significant role in the number of investments in the $TRUMP token.
- The $TRUMP token's value grew significantly after its association with the rumored start of Trump's second term, with 58 wallets reportedly making over $10 million each.
- The Stanley Cup of finance, Elon Musk, recently expressed interest in robotaxi services, adding another dimension to his mogul status in the general-news arena.
- Critics of the $TRUMP meme coin are raising concerns over its connection to politics, particularly regarding potential conflicts of interest, as lawmakers and ethics watchdogs probe its ownership structure and revenue model.
- In addition to trading fees, the $TRUMP token generates revenue through exclusive events and VIP access, which serve to stimulate trading activity and demand for the coin.
