The Official Trump meme coin has suffered a dramatic collapse, reaching an all-time low of $27 on Saturday, a staggering 63% drop from its peak. The token’s market capitalization has plummeted from a remarkable $14 billion to just $5.3 billion, leaving many retail investors grappling with losses.
On-chain data reveals that the token’s most profitable investors, often referred to as “whales,” have exited their positions, cashing in massive profits while retail traders remain stuck.
- The most successful investor walked away with a profit of $53 million after selling all their holdings.
- The second-highest earner sold 70% of their tokens, netting $44 million in profit.
- A third investor still holds $12 million worth of tokens after selling $30 million, possibly betting on a rebound.
The rapid liquidation of these positions aligns with a well-known pattern in meme coin markets, where initial hype often leads to dramatic price surges followed by swift crashes. With no intrinsic value backing the token, the sell-off was almost inevitable once the initial excitement faded.
Data from blockchain analytics firm Nansen highlights a sharp decline in smart money investors—savvy traders with a track record of success. The number of these investors has dropped from 340 to 130 in just a week, with their collective token holdings shrinking from 30 million to 14.4 million.
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The dramatic plunge of the Trump and Melania (MELANIA) meme coins has drawn attention from Washington. Senator Elizabeth Warren and Representative Jake Auchincloss have called for investigations, citing concerns about potential market manipulation and the risk of foreign actors using these tokens to influence U.S. politics.
The possibility of a lawsuit looms large. Investors who have suffered losses may take legal action, citing market manipulation or the promotion of unregistered securities.
A precedent was recently set when aggrieved investors sued Hawk Tuah Girl after her HAWK token collapsed. If a similar lawsuit were filed against Trump or Melania, it could lead to further sell-offs and heightened scrutiny.