Over 800,000 investors 'guarding the mountaintop,' Trump Coin is a mess

Since mid-January, the official memecoin of the US President Trump, Trump Coin, has fallen from a high of $76 to around $17, a drop of nearly 80%.

The swift fall implies that many investors are forced to hold on. According to a report by the blockchain analysis company Chainalysis and The New York Times, the fall of TrumpCoin has caused losses to 810,000 investors, with a total loss of over 2 billion USD.

Unlike these heavily losing investors, early traders and insiders of TrumpCoin reportedly netted a profit of $6.6 billion. Chainalysis also added that just under 700,000 traders profited from trading TrumpCoin.

Another analysis company, Nansen, pointed out that most early profit-takers of Trump Coin were large buyers, with 31 of them making $669 million in just a few days. In contrast, most of the later losers were retail investors.

Cutting leeks

After material mining, it was discovered that the early buyers of Trump Coin were mostly insiders. The first account to publicly bet on Trump Coin was created 3 hours before Trump announced the release of memecoin, with a bet amount exceeding $1 million.

In the first few minutes of trading, a crypto wallet with the identifier 6QSc2Cx acquired a large number of new tokens at an opening price of 18 cents each, totaling 5,971,750 tokens. Subsequently, the price of these memecoins skyrocketed, quickly reaching $75 each.

In addition, Trumpcoin was created 12 hours before Trump announced the news, which also provided insiders with ample preparation time.

In addition to these early large investors, the Trump family is the most visible beneficiary. According to Chainalysis data, nearly $100 million in transaction fees flowed to the Trump family and their partners, but most of the profits have not been realized yet.

For some regulators and analysts who are cautious about memecoin, the huge volatility of Trumpcoin is undoubtedly very worrying.

Former cryptocurrency advisor Corey Frayer of the U.S. Securities and Exchange Commission said that Trump is involved in a cryptocurrency plan that harms investor interests; at the same time, the financial regulatory agency he appointed will withdraw protection from victims, potentially shielding him and his family from regulatory scrutiny.