President Donald Trump’s $TRUMP meme coin has stirred controversy in the cryptocurrency space, generating enormous profits for a small group of investors while leaving the majority at a loss.
Recent data from blockchain analytics firm Chainalysis indicates that out of nearly two million wallets that purchased the token, around 764,000 have incurred losses, predominantly those holding smaller amounts. In stark contrast, 58 wallets have each earned upwards of $10 million, collectively raking in approximately $1.1 billion in gains.
Launched in January ahead of Trump’s second inauguration, the $TRUMP token initially experienced a meteoric rise in value, reaching a market capitalisation of $15 billion. This surge was largely driven by promotional posts from Trump on social media platforms such as Truth Social and X.
However, this peak was fleeting, with the token’s value collapsing dramatically within days. Currently, only about 20% of the total token supply is in circulation, as the remaining 80% is reportedly held by the Trump Organisation and associated entities, subject to a three-year vesting period during which insiders have committed not to sell their holdings.
Interest in the token spiked again following the announcement of an exclusive event scheduled for May 22 at Trump National Golf Club in Washington, D.C. The event promises the top 220 holders a black-tie-optional dinner with the president, while the 25 largest holders will also attend a VIP reception and a tour of the White House.
This announcement propelled the token’s market capitalisation to a peak of $2.7 billion before it retreated to roughly $2.17 billion. Since mid-April, over 100,000 new wallets have acquired the token.
The $TRUMP meme coin has attracted intense scrutiny from regulators and ethics watchdogs. Lawmakers are investigating whether the token, along with a related crypto venture called World Liberty Financial—which reportedly directs 75% of its revenue to the Trump family—constitutes a direct conflict of interest for the president.
The Senate Permanent Subcommittee on Investigations has launched a probe into the token’s ownership structure and revenue model, while House Democrats staged a walkout during a cryptocurrency hearing in protest. Central to the controversy are the exclusive dinner competition for top token holders, promotional posts by Trump himself, and links to foreign investors, including a state-backed fund from the United Arab Emirates and crypto entrepreneur Justin Sun.
Financially, the project has proven lucrative for its creators. Since its inception, wallets connected to the token’s developers have collected over $320 million in trading fees. The token’s code automatically allocates a portion of each transaction to these wallets, enabling the team to generate continuous revenue from trading activity without selling their tokens.
Beyond trading fees, the commercialisation of the meme coin extends into high-priced political fundraising events. For instance, a “Crypto & AI Innovators Dinner” held on May 5 at Trump’s golf club reportedly charged $1.5 million per plate, marking it as one of the most expensive political fundraisers in recent times. Another dinner linked to $TRUMP token holdings offers access based on crypto ownership rather than traditional donations, a novel approach that has sparked both interest and criticism.