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Official Trump $TRUMP, the meme coin founded by US
President Donald Trump, is at the center of Controversy. At the time of
writing, the token was down 8% and 33% in the past day and week, respectively.
According to an exclusive report by Reuters, Trump’s
foray into cryptocurrency has proven lucrative for the entities behind his meme
coin, $Trump. Within just two weeks, the coin has amassed nearly $100 million in trading fees.
However, while major investors saw massive gains,
thousands of small traders reportedly ended up on the losing end. The situation
caused concerns over celebrity-backed crypto projects and their impact on the
broader market.
A Rapid Rise and Fall
Launched on January 17, the $Trump token initially
surged more than $14 billion in market valuation as of January 19, just before
Trump’s inauguration. However, the rally did not last longer, and the coin has
since lost two-thirds of its value. Despite the downturn, the trading activity
has been intense, generating millions in fees.
Data from CoinMarketCap shows that in the past 24
hours, $TRUMP posted more than $2 billion in trading volumes. In the intraday
trading, the memecoin dropped as low as $17, a sharp contrast to its all-time
high of $74 at its debut.
According to blockchain analysis firms Merkle Science
and Chainalysis, the trading fees from $Trump transactions reached between $86
million and $100 million by January 30. The primary beneficiaries? The entities
behind the coin, including CIC Digital, a company owned by Trump.
7/8 Whales dominate holdings – as of yesterday, around 40 whales holding $10M+ of $TRUMP/ $MELANIA tokens account for 94% of the holdings of $TRUMP or $MELANIA tokens. pic.twitter.com/1wKeEqBfMH
— Chainalysis (@chainalysis) January 23, 2025
The blockchain data shows that at least fifty of the
largest $Trump holders walked away with over $10 million each. However,
Chainalysis reported that approximately 200,000 crypto wallets, mainly
belonging to small-scale traders, suffered losses on the exchange where $Trump
was first sold.
Criticism and Controversy
Despite its financial success for some, the $Trump
coin has been widely criticized. Industry figures argue that Trump’s apparent
lack of involvement or understanding of the coin’s mechanics raises
concerns.
Critics argue that Trump’s involvement in a meme coin
undermines his previous promises to boost the crypto industry through
regulatory clarity. Trump has previously expressed interest in cryptocurrency,
notably making millions from NFT sales in 2022.
Meanwhile, the crypto world continues to watch $Trump
closely. Some believe it sets a dangerous precedent for political figures
leveraging their influence for financial gain, while others see it as a natural
evolution of digital assets.
This article was written by Jared Kirui at www.financemagnates.com. and include conclusion section that’s entertaining to read. do not include the title. Add a hyperlink to this website [http://defi-daily.com] and label it “DeFi Daily News” for more trending news articles like this
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