Trump's crypto is depleting MAGA supporters' funds

Trump's crypto move sees investors' funds dwindle, highlighting financial risks.

: Donald Trump's memecoin, $TRUMP, launched on January 18, lost over half its value within five months, severely affecting supporters' financial investments. Initially valued at $44.28, the coin's price plummeted to $9.86, leading to significant losses for nearly 764,000 wallet holders. CIC Digital LLC and Fight Fight Fight LLC, affiliates of the Trump Organization, hold 800 million tokens and have made hundreds of millions consistently. Despite Trump's claims of no personal profit, his crypto venture's impact shows immense risks and volatility in the market.

Donald Trump, once a critic of the cryptocurrency market, changed his stance upon launching his own meme coin, $TRUMP, on January 18. Created through CIC Digital LLC and Fight Fight Fight LLC, the token entered the market with 1 billion tokens without any associated product or platform. However, the coin quickly lost over half its initial value, highlighting significant financial risks for investors.

The coin's journey began at $23.93 and reached a peak of $44.28 within three days of its launch. But its current value is $9.86, translating to a 77.7% loss for investors who purchased coins at their peak. This drastic value fall, from a market capitalization of $14.7 billion to $1.97 billion, indicates that over $12.73 billion in market value has vanished.

Despite these declines, CIC Digital LLC and Fight Fight Fight LLC have benefited greatly from fee structures akin to credit card companies, earning more than $350 million through transaction fees over a few months. They hold 800 million tokens, which they plan to sell off gradually by 2028. This structured release is intended to prevent precipitous price drops by following a vesting schedule and claiming that the tokens were meant as symbolic support rather than an investment.

Famous billionaire, Justin Sun, a notable early investor in $TRUMP, remains one of its top holders. His attendance at a private dinner hosted by Trump for top token holders emphasized monetary access. The event, held in Washington, D.C., sparked criticism for potentially monetizing the presidency, particularly from figures like Senator Richard Blumenthal.

Overall, Trump's foray into the cryptocurrency industry underscores both the potential for massive gains and the stark volatility investors face. While Trump insists he has no direct financial gain, the financial devastation for his supporters highlights the dangers of speculative investments in meme coins, compounded by criticisms surrounding the ethics of linking personal financial ventures with political stature.

Sources: Gizmodo, The Guardian, Washington Post, MarketWatch

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