February 5, 2025
By Anjali Kochhar
In a rapid and controversial foray into the cryptocurrency market, entities associated with President Donald Trump have reportedly amassed nearly $100 million in trading fees from the recently launched meme coin, $TRUMP. This financial windfall, achieved in less than two weeks, contrasts sharply with the experiences of numerous small-scale investors who have incurred significant losses.
The $TRUMP coin was introduced on January 17, 2025, just days before President Trump’s inauguration. The cryptocurrency experienced an initial surge, reaching a peak market valuation exceeding $14.5 billion by January 19. However, this meteoric rise was short-lived, as the coin’s value has since plummeted by approximately two-thirds.
Blockchain analysis firms, including Merkle Science and Chainalysis, have scrutinized the publicly available ledger of $TRUMP transactions. Their analyses estimate that the token generated between $86 million and $100 million in trading fees by January 30. These figures significantly surpass earlier reports and highlight the substantial profits reaped by the coin’s creators.
One of the primary entities behind $TRUMP is CIC Digital LLC, a company owned by President Trump. The official website for the coin indicates that CIC Digital is entitled to “trading revenue derived from trading activities” of the meme coin. However, the exact portion of the fees that have accrued to President Trump personally remains undisclosed. Additionally, the ownership structures of other entities involved in the coin’s creation are not publicly detailed.
The distribution of profits from $TRUMP has been markedly uneven. Chainalysis reports that at least fifty of the largest investors have each realized profits exceeding $10 million from the coin. In stark contrast, approximately 200,000 crypto wallets, predominantly held by small-scale traders, have suffered financial losses. This disparity underscores the risks inherent in speculative investments, particularly for less experienced participants.
The intertwining of President Trump’s official duties with his personal business ventures has elicited criticism from ethics experts and political opponents. Richard Briffault, a law professor at Columbia University, expressed concern over the potential conflict of interest, stating, “There’s an ethical concern that in effect he has the power to regulate his own business.” The opaque nature of the $TRUMP coin’s ownership and the substantial profits generated have intensified these concerns.
The cryptocurrency market’s inherent volatility has been exemplified by $TRUMP’s performance. Despite initial enthusiasm and promotional efforts, including endorsements from President Trump on social media platforms, the coin’s value has experienced significant fluctuations. Investors are advised to exercise caution, conduct thorough research, and be mindful of the speculative nature of such assets.
The launch of the $TRUMP meme coin has resulted in substantial financial gains for its creators and major investors, while leaving a considerable number of small traders facing losses. The situation highlights the complex interplay between political influence, business interests, and market dynamics.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
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