A meme coin whale lost a vast fortune trading $TRUMP tokens, sparking divided community reactions. Due to volatility, meme coins crashed harder
A trader who made a fortune trading TRUMP meme coins last month lost his gains and incurred further losses on the token. In a recent post, crypto analytics firm Lookonchain revealed that the whale made $11.8 million in profit from the token before spending $33.9 million to acquire 766,083 TRUMP tokens. However, due to the downturn in the market, the trader ended up losing $21 million, which included the initial $11.6 million profit and $9 million of his capital.
Last month, the crypto whale had also acquired the meme coin worth $23 million, and as the token surged, he managed to book massive profits. The rise of Official Trump brought several new millionaires in the space. TRUMP token is the fourth-largest meme coin by market capitalization, and its trading volumes have soared high.
“A whale dumped 860,895 $TRUMP for 23.8M $USDC just now. This whale spent 12M $USDC to buy 860,895 $TRUMP at $13.94, then sold it at $27.67, making a profit of $11.8M!” Lookonchain noted.
Official Trump trades at $17.08, down 8% in the last 24 hours and adding to the rising outflows from the asset. The asset has tanked 39% this week after posting double-digit outflows last week. The meme coin’s market cap has also slid to $3.4 billion as the community remains divided over its growth prospects.
Broader Meme Coin Market Nosedives
Meme coin numbers are a far cry from last year’s massive growth after institutional interest spiked in their accumulation. A rally in major crypto assets like Bitcoin, Ethereum, and Solana led to inflows into meme coins as they traded on broader sentiments. DOGE sank 15% last week and 5% today, while SHIB tanked 11% with a 2% daily outflow.
Other assets followed a similar trend, though the bulls are looking at a recovery with the broader market rally. Key focus remains on institutional interest in Bitcoin ETFs and hopes for favorable crypto regulations in the United States.
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