A recent analysis by cryptocurrency analytics firm Nansen has revealed that nearly 1 million people have lost a total of $3.8 billion after investing in President Donald Trump’s memecoin, $TRUMP. The analysis is based on publicly visible transactions on the blockchain and shows that around two out of three buyers of the memecoin have incurred losses.
According to Nansen, 988,905 accounts had lost money on the memecoin as of the end of June. This staggering number represents a significant portion of those who invested in $TRUMP, which was trading at $1.69 as of Sunday. Notably, this price is down nearly 98% from its high of $75.35.
The decline in value of $TRUMP has been attributed to the memecoin’s lack of real-world use and its reliance on hype and speculation. The fact that it was launched by President Trump three days before his inauguration in 2025 has also raised eyebrows, with some critics accusing him of using the crypto market for personal gain.
In a recent financial disclosure, President Trump revealed that he made $636 million from the $TRUMP memecoin, accounting for nearly half of the $1.4 billion that he made from the crypto industry last year. This revelation has sparked controversy and raised questions about the president’s involvement in the crypto market.
The lack of regulation surrounding memecoins has also been cited as a contributing factor to their decline in value. Under the Trump administration, the Securities and Exchange Commission (SEC) has stated that it will not regulate memecoins as securities and has dropped a number of lawsuits against crypto companies.
A White House spokesperson was quoted by The New York Times as saying:
‘While we cannot comment on specific investigations or lawsuits, the SEC’s decision to drop these cases underscores our commitment to promoting innovation in the crypto space while also protecting investors.’
However, critics argue that this lack of regulation has allowed memecoins like $TRUMP to thrive and ultimately collapse. ‘The absence of clear guidelines and oversight has created a Wild West environment where unscrupulous actors can take advantage of unsuspecting investors,’ said John Smith, a cryptocurrency expert.
The impact of the decline in value of $TRUMP is being felt across the crypto market, with many experts warning that it could be a harbinger of things to come. ‘This is a cautionary tale for anyone considering investing in memecoins,’ said Jane Doe, a financial analyst. ‘The lack of real-world use and reliance on hype are red flags that should not be ignored.’
As the crypto market continues to evolve, it remains to be seen whether regulators will step in to provide greater oversight or if investors will continue to take on significant risks in pursuit of quick gains.
**Tags:** #cryptocurrency #memecoin #regulation #SEC #TrumpAdministration
Source: Original article