Trump Family Earned $320M from Memecoin Despite 87% Drop Since Launch
U.S. President Donald Trump has come a long way since he said the value of crypto was “based on thin air” in 2019. So much so that he is now one of the sector’s largest proponents, engaging with memecoins, DeFi, NFTs, and even stablecoins.
A new report by the State Democracy Defenders Fund estimates that Trump’s family has increased their net worth by $2.9 billion thanks to crypto, and that now 40% of that net worth is being held in crypto assets. His deepening ties to the industry have reverberated across the political landscape, leading to a broadly bipartisan stablecoin bill that faced difficulties in a key vote after concerns were raised about the extent of his profits from the sector.
Trump’s support has helped sustain a bullish market since his election victory in November, largely characterized by two trends: memecoins and the institutional adoption of bitcoin through ETFs. While the latter primarily involves institutional investors, it is the memecoin market that poses risks for retail investors and may be susceptible to exploitation.
Recently, Solidus Labs claimed that 98% of memecoins issued on the token creation platform pump.fun involved rug pulls or pump-and-dump schemes, although the platform refuted these claims. Another analysis suggested that a significant number of TRUMP token holders experienced losses.
A memecoin is a type of crypto token without inherent value, often inspired by memes or cartoon characters. Popular examples include dogecoin (DOGE), shiba inu (SHIB), and pepe (PEPE). The hype surrounding Trump’s social media promotion of his own TRUMP token peaked in January, followed by a token named MELANIA, after his wife.
TRUMP, which initially peaked at $77.26, is now trading at $10.80, reflecting a decline of 86%. MELANIA has lost over 97% of its value in four months, trading recently at 33 cents. The interest generated by Trump’s social media posts led to extensive trading activity. Data reveals that 760,000 wallets, primarily belonging to retail investors, incurred losses on the TRUMP token.
In contrast, a small group of investors reportedly avoided these losses, with 58 wallets reportedly making profits exceeding $10 million. The token’s creators accumulated approximately $320 million in trading fees, although around 5% of the fees went to the decentralized exchange Meteora.
MELANIA was allegedly acquired by a group of insiders before its public debut in a practice known as “sniping,” allowing them to profit substantially after the token price doubled. One insider, Hayden Davis from Kelsier Ventures, discussed his involvement in a February interview, identifying himself as part of the initiative surrounding MELANIA.
Trump’s engagement with crypto extends beyond memecoins. His family is involved in World Liberty Financial, a decentralized finance (DeFi) platform that raised approximately $590 million in two pre-sale rounds earlier this year. Although the current crypto market value is lower than the initial fundraising figure, Arkham Intelligence data indicates that World Liberty Financial holds about $103 million worth of crypto.
In addition, Trump has ventured into non-fungible tokens (NFTs) by releasing a series of cartoon depictions of himself, earning around $8 million from these initiatives according to financial disclosures.
Most recently, Trump hosted a private dinner for a group of 25 TRUMP token holders at his Virginia golf club, with a significant number of participants linked to foreign entities or offshore exchanges. He is set to host another gathering for the top 220 holders of his token. U.S. Senators have voiced concerns regarding potential ethical violations related to these events.
The Trump family did not respond to requests for comments on these matters.
