Donald Trump’s launch of a new cryptocurrency called $Trump just days before his inauguration caused a frenzy in the crypto market. Some early traders made huge profits, with one wallet securing nearly 6 million tokens and walking away with a two-day profit of up to $109 million. However, many slower investors suffered losses totaling over $2 billion when the price crashed.
Everything you’ve seen so far is just a small glimpse of what is yet to come.
Memecoins will go to Trillions.
— Murad 💹🧲 (@MustStopMurad) February 8, 2025
Despite the losses, the Trump family and their partners collected nearly $100 million in trading fees. The price of $Trump has since hovered around less than a quarter of its $75 peak value.
During every Crypto Cycle
The Holders of the "Best" Coins in the "Best" Category outperform All Traders
Best Category this Cycle = Memecoins
Holders of the Best Memecoins will outperform all Gamblers, Traders and Rotators.
— Murad 💹🧲 (@MustStopMurad) February 8, 2025
The opaque ownership structure and substantial trading fees have raised concerns among ethics experts about potential conflicts of interest, given Trump’s influential position and public following.
Critics argue that Trump’s promotion of the coin and the profits collected by his affiliates might pose ethical issues.
[,senior fellow at Brookings Institution & economics professor at Cornell Univ, told that by launching his own coin, Trump had “opened floodgates to deception & -rampant speculation”]
[Trump’s meme coin sparks more than 700 copycats posing as official-] https://t.co/NX32l21T76
— Norio Nakatsuji (@norionakatsuji) February 8, 2025
Trump’s cryptocurrency sparks ethical concerns
Meme coins like $Trump are a type of digital asset based on viral online memes.
Trump on DOGE obtaining Americans' personal information, including social security numbers and bank numbers: "They get it very easily. We don't have very good security in our country." pic.twitter.com/LAcWQ6YQoE
— Aaron Rupar (@atrupar) February 7, 2025
They differ from established cryptocurrencies like Bitcoin, as most meme coins are tokens operating on existing blockchains and requiring little technical development. The primary purpose of meme coins is speculation, with users hoping to make quick profits. However, most people lose money on meme coins due to their volatility and susceptibility to “Meme coins and dump” schemes. MostTheir primary purpose
Despite the risks, meme coins have boomed over the past year, driven by factors such as the launch of user-friendly meme coin creation platforms and the election of crypto-friendly Trump. While meme coins have their foundations in cryptocurrencies, they have strayed far from the original vision of using cryptocurrency as a real alternative to traditional finance. Instead, they have become a form of high-risk gambling, with institutional investors making billions while ordinary people lose money.