About 764,000 crypto wallets that bought Donald Trump’s meme coin, $TRUMP, have lost money, according to blockchain data firm Chainalysis. Most of these wallets only held small amounts of the coin.
A Few Wallets Made Millions
While most investors lost, only 58 wallets made big profits over $10 million each. Together, they earned around $1.1 billion. In total, about 2 million wallets have bought the coin. The $TRUMP coin got popular during the start of Trump’s second presidential term. It gained attention with wild price swings and unfair returns, where a few made a lot while most lost money. The companies Fight Fight Fight LLC and CIC Digital LLC own most of the token.
Dinner With Trump Drove More Buyers
The coin surged after a promise that the top 220 holders would get invited to a dinner with Trump on May 22 at Trump’s golf club in Washington, D.C. The top 25 wallets will also get a private reception and White House tour. This announcement pushed the coin’s market cap to $2.7 billion, although it’s now down to about $2.17 billion.
Lawmakers Are Investigating
The coin is now under government investigation. Lawmakers want to know if the coin and another project called World Liberty Financial (which sends 75% of its profits to the Trump family) are conflicts of interest for the president. The Senate’s Permanent Subcommittee on Investigations is looking into the project’s ownership and how it makes money.
Only 20% of $TRUMP coins are currently in circulation. The rest which about 80% is held by Trump-affiliated groups and locked up for three years. These insiders aren’t allowed to sell yet, but they’re already making money in other ways.
Even though the tokens are locked, the creators are making big profits. Since January, they’ve earned over $324 million from trading fees. The token’s code automatically sends part of each transaction to the developers’ wallets.
