Trump Memecoin Crash Wipes Out $3.8 Billion From Investors

Nearly one million cryptocurrency traders lost a combined $3.8 billion after purchasing President Donald Trump’s official $TRUMP memecoin, according to a blockchain transaction analysis by data firm Nansen compiled through the end of June.

Inside the Massive Blockchain Losses

A detailed investigation published by The New York Times reveals the scale of the financial damage. Nansen’s analysis of publicly visible blockchain transactions identified that 988,905 unique digital wallets suffered net losses on the token. This figure represents approximately two-thirds of all market participants who purchased the $TRUMP cryptocurrency.

The Dramatic Rise and Fall of $TRUMP

The token’s market valuation has experienced a severe correction. On Sunday, $TRUMP was trading at $1.69, marking a devastating 98% decline from its all-time high of $75.35.

A Pattern of Declining Crypto Ventures

The president officially introduced the memecoin to the public just three days prior to his presidential inauguration in 2025. This launch followed his previous involvement in the decentralized finance space, where he co-founded the crypto startup World Liberty Financial alongside his sons. The project’s native token, $WLFI, has also suffered significant downward price pressure and lost substantial value since its debut.

Trump Reaps Hundreds of Millions Amid Market Crash

While retail investors faced severe liquidations, the venture proved highly lucrative for the president himself. In a recent federal financial disclosure, he made $636 million from the $TRUMP memecoin. This payout accounted for nearly half of the $1.4 billion in total income the president generated from the broader cryptocurrency industry over the past year.

Deregulation and the “Crypto Capital” Vision

The financial losses occur alongside a dramatic shift in federal oversight. Under the current Trump administration, the Securities and Exchange Commission (SEC) pivotally announced that it would not classify or regulate memecoins as securities. Furthermore, the regulatory agency has systematically dismissed several ongoing lawsuits against major cryptocurrency corporations.

Defending the administration’s policy direction, a White House spokesperson stated to the media that “President Trump proudly made the United States the crypto capital of the world.”