Lost tens of millions of dollars because of 'riding the peak' of TRUMP cryptocurrency

When President Donald Trump launched his memecoin project on January 18, the cryptocurrency trading fever pushed the market capitalization to nearly $9 billion in just a few hours. First Lady Melania Trump did not miss this opportunity, she released a token of the same name and attracted great attention from the community.

Some people made a profit by investing early in the TRUMP token and selling when the price increased, but not everyone was so lucky. Each TRUMP coin is currently trading around $30, down more than 50% from its peak on January 19. Meanwhile, the MELANIA token has fallen nearly 80%, from a peak of $13 to $2.

TRUMP memecoin price chart

As the price of the TRUMP token plummeted, so did the money in investors’ wallets. Data from blockchain analytics firm Lookonchain shows that a digital wallet linked to prominent trader Ansem lost more than $2.5 million from investing in TRUMP. The wallet spent $9.3 million to buy the US president’s memecoin at $48 and then dumped it for $35. At the end of the transaction, the account was left with $6.8 million.

Trump's Memecoin Fever Makes Big Losses

Many other investors also admitted to losing tens of millions of dollars in the Trump memecoin craze. Trader Ctoscreener took a screenshot showing that his account lost $20 million after only 3 hours of trading the TRUMP memecoin. Meanwhile, another trader lost $400,000 on the MELANIA token.

Data from Lookonchain released on January 24 shows that an investor withdrew more than $1 million in Solana to trade memecoin and lost almost all of it. This person bought 13 different memecoin tokens, but only one memecoin brought in a profit of $231. The remaining $900,000 was blown away.

Mr. Trump's memecoin project has attracted great attention from the community because many people believe that the re-elected US president will have a cryptocurrency-friendly policy and TRUMP is the "first shot".

According to CoinDesk , the memecoin craze associated with Mr. Donald Trump has caused the supply of stablecoins (stable tokens, pegged to the USD at a 1:1 exchange rate used to buy and sell cryptocurrencies) on the Solana blockchain to double in January, to $10 billion.

However, many people criticized Mr. Trump's actions. Experts expressed concern about the potential negative impact on investors. Cryptocurrency fraud analyst Coffeezilla noted that most of the people who lost money on memecoins this time were not professional cryptocurrency players.

On January 21, Democratic legislator Gerald Connolly of Virginia called on the US House Committee on Oversight and Government Reform to consider investigating Mr. Trump’s cryptocurrency projects, citing the potential conflict of interest with the power and duties he is in charge of.

Senator Elizabeth Warren also asked US financial regulators and stakeholders to consider the ethical and legal risks surrounding the launch of a memecoin by the president and first lady.

Memecoins are tokens created as a joke. They often follow events on the internet or a new trend. The special thing about memecoins is that they are often very cheap, but the high supply rate allows users to own a large amount of tokens with just a small amount of money. Memecoins often have a short "lifespan", are quickly inflated, and some projects reach a capitalization of billions of dollars due to the support of many famous people.

In the cryptocurrency market, memecoin is still a controversial topic. Many people think that this is a scam, creating no value. But others think that memecoin is a simple, cheap way for users to easily access cryptocurrencies. For professional investors, memecoin is also an opportunity to help accounts make hundreds or even thousands of times more profit in a short time, which tokens like Bitcoin cannot do. That is why memecoin projects like Mr. Trump's always attract a large number of participants.

Source: https://thanhnien.vn/mat-chuc-trieu-usd-vi-du-dinh-tien-so-trump-185250126083240384.htm