Donald Trump supporters faced a massive $12 billion loss after his meme coin collapsed, wiping out investments and sparking financial concerns
Supporters of Donald Trump have recently faced significant financial losses due to the collapse of a meme coin associated with him.
This financial setback amounts to a staggering $12 billion.
The coin, which was launched as a way to celebrate Trump’s return to the White House, has proven to be highly volatile.
The rise and fall of $TRUMP coin
The $TRUMP coin was introduced in January 2025, promising to bring prosperity to its investors.
Initially, many people were excited, and some even became millionaires overnight. The launch was seen as a patriotic move, aligning with Trump’s political brand.
However, as the excitement faded, the value of the coin plummeted dramatically.
Since its peak, the $TRUMP coin has lost about 80% of its value. From a high of $73.43 just days after its launch, the coin has dropped to around $11.27.
This rapid decline has left many investors reeling and questioning their decisions. Those who invested heavily in the coin are now facing substantial losses.
Comparison to other meme coins
The $TRUMP coin is not the only meme coin facing difficulties. Melania Trump’s own coin, the $MELANIA, has also struggled.
Investors who bought $MELANIA at its peak have seen their investments drastically reduced.
For instance, a $10,000 investment at the coin’s peak of $13.73 is now worth only about $652.44.
This pattern of loss reflects the risky nature of investing in meme coins, which many experts compare to gambling.
Wider impact on the cryptocurrency market
The collapse of these meme coins coincides with a broader downturn in the cryptocurrency market.
After reaching an all-time high of $108,786, Bitcoin has also seen a decline, now sitting at around $79,844.
This has led to skepticism about the future of cryptocurrencies and their viability as investments.
Many investors are now more cautious, realizing that the hype surrounding meme coins can lead to significant financial risks.
The situation raises questions about the sustainability of such investments and whether they can recover in the future.
Legislative response to Trump meme coins
The financial troubles tied to the Trump family’s meme coins have caught the attention of lawmakers.
California Representative Sam Liccardo has proposed new legislation aimed at regulating the involvement of public officials in the cryptocurrency market.
His proposed Modern Emoluments and Malfeasance Enforcement (MEME) Act seeks to prevent government officials and their families from profiting from meme coins and similar assets.
Liccardo argues that the issuance of these coins exploits the public for personal gain, raising concerns about potential insider trading and foreign influence.
He believes that public offices should serve the interests of the citizens, not personal financial gain for officeholders.