In January 2025, former US President Donald Trump launched his personal memecoin “TRUMP,” which saw its market value soar to $14.5 billion in just two weeks, with transaction fees exceeding $100 million. However, what seemed like a wild wealth myth ultimately turned into a devastating $2 billion bloodbath, leaving nearly 810,000 crypto wallets virtually empty. This farce not only exposed the absurdity of the crypto market but also revealed the collusion between power and capital.

The birth of Trump Coin was highly dramatic. On January 17, Trump announced the launch of the coin via social media, claiming it was a show of support for the “American spirit.” The coin’s price quickly surged 412 times, with its market value once exceeding $10 billion and surpassing several mainstream cryptocurrencies. However, behind this frenzy was a well-scripted plan—the coin’s supply was 80% controlled by Trump-associated companies CIC Digital and Fight Fight Fight LLC, with only 10% circulating in the market. With such a small circulating supply, market manipulators could easily control the price with minimal funds, luring retail investors to take the bait.

As early investors cashed out, the coin’s price peaked just before Trump’s inauguration on January 20 and then plummeted sharply. By February 10, the price of TRUMP had crashed from $75 to $17, a drop of over 75%, resulting in retail investors losing more than $2 billion. One investor, nicknamed “Lynx,” who bought $1 million worth of TRUMP at the $75 peak, ended up nearly wiped out due to a leveraged position, becoming a typical example of the carnage.

While retail investors suffered heavy losses, a few “smart money” players made a fortune. Blockchain data showed that 50 major holders profited by over $10 million each. For instance, one investor bought 5.97 million TRUMP coins for $0.18 each just two minutes after the launch and sold them two days later at $75, netting a profit of $109 million. Many of these early holders had close ties to the project and even obtained tokens without purchasing them, forming an “insider harvesting” chain.

Ironically, the Trump family claimed “no knowledge of the coin’s price” while profiting nearly $100 million from transaction fees. Trump’s eldest son, Eric Trump, proudly declared his “pride in the achievement” but remained silent on retail investors’ losses. This “being both the referee and the player” model has sparked ethical controversies. A Columbia University law professor stated, “Trump has the power to regulate his own business, which is a blatant conflict of interest.”

The collapse of Trump Coin is not accidental but a common feature of the memecoin market. These tokens have no real value and rely on celebrity effects and social media hype, essentially being a “greater fool game.” Former Dallas Mavericks owner Mark Cuban criticized, “The crypto industry could have pursued legitimacy, but Trump turned it into a scam.” Even supporters are outraged; conservative host Ryan Brien condemned, “Issuing coins has damaged Trump’s credibility.”

More alarmingly, the Trump family has monetized their political influence. Trump’s eldest and second sons have established “World Freedom Finance,” attempting to integrate cryptocurrency into the family’s business empire. Given the Trump administration’s promise to “make America the crypto capital,” the close alignment of policy倾斜 and family interests makes this harvesting even more dangerous.

The collapse of Trump Coin once again confirms the jungle law of the crypto market: information asymmetry, market manipulation by whales, and blind following by retail investors. This $2 billion lesson is not only a warning to speculators but also a拷问 of regulatory absence. As a Washington lobbyist said, “The crypto industry already carries a stigma of fraud, and Trump has made it worse.” If investors want to avoid becoming the next batch of “lettuce,” they must remember that in a bubble, the only reality is risk.

In January 2025, former US President Donald Trump launched his personal memecoin “TRUMP,” which saw its market value soar to $14.5 billion in just two weeks, with transaction fees exceeding $100 million. However, what seemed like a wild wealth myth ultimately turned into a devastating $2 billion bloodbath, leaving nearly 810,000 crypto wallets virtually empty. This farce not only exposed the absurdity of the crypto market but also revealed the collusion between power and capital.

The birth of Trump Coin was highly dramatic. On January 17, Trump announced the launch of the coin via social media, claiming it was a show of support for the “American spirit.” The coin’s price quickly surged 412 times, with its market value once exceeding $10 billion and surpassing several mainstream cryptocurrencies. However, behind this frenzy was a well-scripted plan—the coin’s supply was 80% controlled by Trump-associated companies CIC Digital and Fight Fight Fight LLC, with only 10% circulating in the market. With such a small circulating supply, market manipulators could easily control the price with minimal funds, luring retail investors to take the bait.

As early investors cashed out, the coin’s price peaked just before Trump’s inauguration on January 20 and then plummeted sharply. By February 10, the price of TRUMP had crashed from $75 to $17, a drop of over 75%, resulting in retail investors losing more than $2 billion. One investor, nicknamed “Lynx,” who bought $1 million worth of TRUMP at the $75 peak, ended up nearly wiped out due to a leveraged position, becoming a typical example of the carnage.

While retail investors suffered heavy losses, a few “smart money” players made a fortune. Blockchain data showed that 50 major holders profited by over $10 million each. For instance, one investor bought 5.97 million TRUMP coins for $0.18 each just two minutes after the launch and sold them two days later at $75, netting a profit of $109 million. Many of these early holders had close ties to the project and even obtained tokens without purchasing them, forming an “insider harvesting” chain.

Ironically, the Trump family claimed “no knowledge of the coin’s price” while profiting nearly $100 million from transaction fees. Trump’s eldest son, Eric Trump, proudly declared his “pride in the achievement” but remained silent on retail investors’ losses. This “being both the referee and the player” model has sparked ethical controversies. A Columbia University law professor stated, “Trump has the power to regulate his own business, which is a blatant conflict of interest.”

The collapse of Trump Coin is not accidental but a common feature of the memecoin market. These tokens have no real value and rely on celebrity effects and social media hype, essentially being a “greater fool game.” Former Dallas Mavericks owner Mark Cuban criticized, “The crypto industry could have pursued legitimacy, but Trump turned it into a scam.” Even supporters are outraged; conservative host Ryan Brien condemned, “Issuing coins has damaged Trump’s credibility.”

More alarmingly, the Trump family has monetized their political influence. Trump’s eldest and second sons have established “World Freedom Finance,” attempting to integrate cryptocurrency into the family’s business empire. Given the Trump administration’s promise to “make America the crypto capital,” the close alignment of policy倾斜 and family interests makes this harvesting even more dangerous.

The collapse of Trump Coin once again confirms the jungle law of the crypto market: information asymmetry, market manipulation by whales, and blind following by retail investors. This $2 billion lesson is not only a warning to speculators but also a拷问 of regulatory absence. As a Washington lobbyist said, “The crypto industry already carries a stigma of fraud, and Trump has made it worse.” If investors want to avoid becoming the next batch of “lettuce,” they must remember that in a bubble, the only reality is risk.