At the time of writing, the token was down 8% and 33% in the past day and week, respectively.
Donald Trump's meme coin, $TRUMP, has sparked controversy with its rapid rise and fall, generating nearly $100 million in trading fees but leaving many small traders at a loss, according to an exclusive report by Reuters.
Launched on January 17, the $TRUMP token initially saw an astronomical surge, reaching a peak market valuation of over $14 billion on January 19, just ahead of Trump's inauguration. However, the rally was short-lived, and the coin has since lost around two-thirds of its value. Despite the downturn, trading activity remained intense, generating millions in fees.
CoinMarketCap data showed that over the past 24 hours, $TRUMP had registered more than $2 billion in trading volumes. In intraday trading, the memecoin dropped as low as $17, a stark contrast to its all-time high of $74 at debut.
According to blockchain analysis firms Merkle Science and Chainalysis, trading fees from $TRUMP transactions reached between $86 million and $100 million by January 30. The primary beneficiaries of these fees were the entities behind the coin, including CIC Digital, a company owned by Trump.
Blockchain data showed that at least fifty of the largest $TRUMP holders walked away with over $10 million each. However, Chainalysis reported that approximately 200,000 crypto wallets, mainly belonging to small-scale traders, suffered losses on the exchange where $TRUMP was first sold.
The $TRUMP coin, despite its financial success for some, has been met with widespread criticism. Industry figures have pointed to Trump's apparent lack of involvement or understanding of the coin's mechanics, raising concerns.
Critics also argue that Trump's involvement in a meme coin like $TRUMP runs counter to his previous promises to boost the crypto industry through regulatory clarity. In the past, Trump has expressed interest in cryptocurrency, notably making millions from NFT sales throughout 2022.
As the dust settles, the crypto world continues to observe $TRUMP closely. While some see it setting a dangerous precedent for political figures using their influence for financial gain, others view it as a natural evolution of digital assets.
