Trump Memecoin Frenzy Enriches Few, Leaves Thousands in the Red

A Trump-inspired cryptocurrency has seen explosive growth and just as much controversy.

The $TRUMP token surged in value after Donald Trump hinted at a private dinner with the top 220 holders, causing a frenzy that briefly lifted its market cap to $2.7 billion before falling back to around $2.18 billion.

But while the hype brought thousands of new buyers into the fold, most ended up losing money. Chainalysis data cited by CNBC reveals that over 760,000 wallets are in the red, with smallholders taking the brunt of the hit. Meanwhile, a small circle of just 58 large holders reportedly pocketed over $1.1 billion in profits, each earning at least $10 million.

The dinner promotion added more fuel to the token’s momentum, prompting massive withdrawals from Binance. One new wallet pulled $10.7 million worth of $TRUMP, while a known address connected to MemeCore took out even more—only to face millions in losses as prices dipped.

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Amid the chaos, questions about legality and influence have surfaced. A Senate subcommittee is now investigating the token’s ownership structure and how it generates revenue, particularly in light of promotional posts from Trump himself and ties to entities like an Emirati fund and crypto figure Justin Sun.

Critics are also sounding the alarm over a separate Trump event: a $1.5 million-per-head crypto and AI dinner organized through his super PAC. Because crypto payments don’t face the same transparency rules as political donations, watchdogs warn it could open the door to anonymous or foreign influence behind the scenes.

Alexander Stefanov