Trump TRUMP/USD Meme Coin Launch Leaves Retail Investors Nursing Losses, Hesitant to Engage in Further Speculative Cryptocurrency Trading

A new report by 10x reveals that retail investors are nursing significant losses following the launch of the Trump TRUMP/USD meme coin, leading to hesitation

A new report by 10x reveals that retail investors are nursing significant losses following the launch of the Trump (TRUMP/USD) meme coin, leading to hesitation in engaging in further speculative cryptocurrency trading.

According to the report, interest and trading volumes in meme coins have declined sharply, with retail investors retreating from the market amid concerns over insider advantages and liquidity risks.

“Retail investors tend to tolerate risk despite frequently losing money—look at weekly lottery sales,” the report states. “However, they withdraw when they realize the game is rigged.”

The TRUMP token soared to a $14.5 billion market cap just two days after launch, driven by rapid exchange listings that provided an exit for early buyers.

However, the token has since plunged 78% from its all-time high, leaving many late-stage investors deep in the red.

The study also notes that transaction activity on platforms like Pump.fun, which facilitates meme coin launches, has dropped by 50% from peak levels.

“The issue isn't just price declines—it's the realization that insiders could accumulate large amounts early, leverage significant crypto exchanges for liquidity, and then sell to retail investors at over $60 per token, only to trade below $16,” the report adds.

Meanwhile, broader market sentiment remains weak, with macroeconomic concerns, including inflation and trade tariffs, weighing on speculative enthusiasm.

Bitcoin (BTC) dominance remains above 60%, as sophisticated traders shift away from altcoins and into BTC amid economic uncertainty.

While Bitcoin has held its ground, meme coins and altcoins have struggled to regain momentum.

The report suggests that retail interest in cryptocurrency remains subdued, with Google Search Trends showing a sharp drop in searches for meme coins since January.

“The launch of $TRUMP appears to have directly coincided with the peaks of Pump.fun and Solana (SOL/USD), marking a turning point in speculative momentum,” the research notes. “This time, the wealth transfer from late buyers to early investors may have been too extreme and publicized, potentially dampening enthusiasm for new speculative meme coin pumps.”

Despite this downturn, 10x sees potential for a market turnaround in the coming months.

If Bitcoin retraces some of its gains from the Trump election rally, it could create a strong buying opportunity, particularly as institutional investors continue to accumulate BTC.

However, until a new narrative drives fresh momentum, retail traders may remain hesitant to jump back into speculative tokens.