Investors in the Official Trump Memecoin Have Collectively Lost an Estimated $2 Billion

As the politically-themed cryptocurrency plummeted over 88% from its January peak, highlighting the extreme risks of speculative digital assets

Investors in the Official Trump memecoin have collectively lost an estimated $2 billion as the politically-themed cryptocurrency plummeted over 88% from its January peak, highlighting the extreme risks of speculative digital assets tied to political figures.

The token, which initially captivated markets with a staggering $13 billion valuation on Inauguration Day, now trades at approximately $8.40, down dramatically from its high of over $71.

On-chain data reveals the losses are primarily concentrated among small retail investors rather than institutional players. While the token boasts approximately 636,000 holders, only 12,285 wallets contain more than $1,000 worth of the cryptocurrency, according to CoinDesk . This distribution pattern suggests the financial pain has disproportionately affected ordinary citizens speculating on the presidential-themed token.

The dramatic price decline has been attributed to several factors, including the token’s inflationary tokenomics, weak market structure, and diminishing speculative interest following the initial launch hype. The absence of fundamental utility beyond political association has further contributed to the sustained downward pressure.

Adding to investor concerns, the TRUMP token faced one of the most significant supply increases in memecoin history on April 18, when 40 million new coins valued at approximately $320 million entered circulation following the end of a three-month cliff period. This represents just the beginning of substantial inflation pressure, with approximately 4.1 million additional TRUMP coins scheduled for daily release starting now and continuing until mid-2028.

Despite predictions of a price collapse due to the token unlock, the market actually saw a modest 9% gain in the 24 hours following the event, defying widespread expectations of immediate disaster. This surprising resilience has been attributed to the fact that Trump-owned businesses — CIC Digital LLC and Fight Fight Fight LLC — control approximately 80% of the newly unlocked supply, according to New York Magazine .

Perhaps most concerning for remaining investors are the dangerously thin liquidity conditions surrounding the TRUMP token. Market data indicates that just $1.3 million in trading volume could move the price by 2% on major exchanges, creating the potential for extreme price volatility and making orderly exits difficult for larger holders.

Technical analysts have identified the $6.80 to $7.00 range as a critical support zone that will determine whether TRUMP can maintain its price during this inflationary phase. A break below this level could trigger another significant leg down, potentially bringing prices below $5.00, according to analysis reported by NewsBreak .

The token’s association with political events creates additional unpredictability, as traders anticipate potential short-term price pumps triggered by bullish political developments, such as the recently announced 90-day global tariff pause. However, these temporary rallies have done little to offset the overall downward trend.

The administration has maintained an ambiguous relationship with the cryptocurrency, neither directly endorsing nor disavowing it. This regulatory uncertainty adds another layer of complexity for investors attempting to navigate the token’s future prospects, especially as the Trump team reportedly shifts focus to new ventures combining cryptocurrency with real estate gaming.

While the token remains the fourth-largest memecoin with a market capitalization of $1.67 billion, the dramatic collapse serves as a stark reminder of the extreme risks associated with speculative cryptocurrencies, particularly those tied to political personalities rather than fundamental technological utility.