More than one million investors have purchased the “$TRUMP” memecoin, but data indicates the venture has resulted in significant financial losses for the majority of participants. According to a report by the analysis firm Nansen, cited by The New York Times, 988 905 buyers have collectively lost 3.81 billion dollars, while President Donald Trump has personally generated 636 million dollars in revenue from the initiative.
Why are most $TRUMP investors losing money?
Nansen’s report highlights that while 988 905 buyers have seen their investments decline, a smaller group of investors—primarily early adopters—have realized 4 billion dollars in collective gains.
Nicholas Pinto, an investor who reported losses, described the dynamic to The New York Times as a “legal fraud.” He argued that the President leverages his political standing to launch assets at moments when he holds public trust, effectively drawing in retail capital that ultimately fails to appreciate in value.
President Trump earns a return on his holdings regardless of whether the market price of the “$TRUMP” token rises or falls. The mechanism ensures that every transaction involving the currency contributes to his personal revenue stream.
How does the President profit from the token?
President Trump’s financial gain is built into the transaction flow of the cryptocurrency. According to the Nansen report, the President receives a cut of the proceeds every time an investor buys or trades the token. This model provides a consistent revenue stream for the creator, independent of the token’s market performance.
While the White House has rejected allegations that the President is exploiting his supporters, Trump has frequently used his social media platforms to encourage his base to acquire the coin. This advocacy began during his 2024 campaign, a period that also saw the launch of a separate startup venture involving the “$WLFI” token, which has also experienced a sharp decline in value.
The timeline of Trump’s cryptocurrency ventures
The President’s entry into the digital asset market became prominent during his 2024 campaign. Three days before beginning his second term, he officially introduced the “$TRUMP” memecoin via X (formerly Twitter). He encouraged followers to join his “special Trump community,” framing the token as a way to celebrate his political wins.
| Metric | Result |
|---|---|
| Total buyers in loss | 988 905 |
| Total losses incurred | 3.81 billion dollars |
| Trump’s personal revenue | 636 million dollars |
