The New York Times reviewed an analysis which showed former President Donald Trump together with his family members received $100 million in trading fees from the $TRUMP cryptocurrency. The value decrease of $TRUMP cryptocurrency resulted in $2 billion worth of losses spread across 810,000 crypto wallets.
The memecoin experienced initial price appreciation that enabled both professional traders and Chinese professionals to generate substantial earnings. The traders acquired $TRUMP coins during their first sale at $0.18 before selling them when the price reached its peak. The market price collapse hit retail investors hard because they ended up losing substantial amounts of money.
The New York regulatory authorities issued prior warnings about “pump-and-dump” schemes which involved coin creators raising prices before selling their assets to obtain substantial profits. Blockchain analysis conducted by Nansen and Chainalysis alongside independent researcher Molly White followed transactions which potentially demonstrated insider trading activities. A wallet made a $1.1 million investment in $TRUMP tokens just three hours before the official launch and went on to profit $109 million from its sale.
The available evidence does not prove that Trump or his associates manipulated cryptocurrency markets. Trump has stated to the media that his knowledge about the token extends only to its initial launch.
Public Citizen as a consumer advocacy group requested the Department of Justice to examine whether Trump’s promotion of $TRUMP violates constitutional Emoluments Clause or any federal regulations. People express worry that foreign governments might use the cryptocurrency to discreetly influence Trump. The increasing level of investigation reveals that $TRUMP has caused thousands of investors to suffer substantial financial losses.