Two-thirds of investors in the "memecoin" (a cryptocurrency that became a short-lived sensation) launched by U.S. President Donald Trump lost money, while Trump himself earned profits totaling nearly 1 trillion won. Those who invested trusting Trump suffered heavy losses, yet the president has taken no particular responsibility and has even profited personally. Following controversies over his family businesses' stock investments and drone ventures tied to Trump administration policies, conflict-of-interest concerns are now intensifying over the cryptocurrency business as well.
On Wednesday, The New York Times (NYT), citing a report by cryptocurrency analytics firm Nansen, reported that 988,905 investors who bought Trump's cryptocurrency (coin) "$TRUMP" recorded losses as of late last month. This amounts to two-thirds of all buyers.
Investors' cumulative losses, including unrealized losses, reached $3.81 billion (5.82 trillion won). The Trump cryptocurrency, which soared to $75 early last year, traded at $1.76 as of Tuesday, a 97% plunge. However, according to Nansen, 500,000 wallets earned $4 billion (6 trillion won) in profits. Regarding the stark disparity, Nansen analyzed that "a small number of early investors realized enormous gains, while most individual investors bore the losses."
By contrast, Trump reaped massive profits. According to the annual financial disclosure report Trump recently released, he earned $636 million (973 billion won) from the Trump cryptocurrency business. This was because Trump's structure earned him fee revenue on every transaction, regardless of whether the cryptocurrency's price rose. Trump had repeatedly encouraged purchases of the Trump cryptocurrency on Truth Social, the NYT reported.
The Trump family is also connected to the cryptocurrency business. Trump's sons and the sons of Steve Witkoff, a close aide to Trump, founded the cryptocurrency company "World Liberty Financial" and released the World Liberty Financial (WLFI) token and the Trump cryptocurrency. At the time, Trump urged purchases, saying it was "time to celebrate everything we stand for" and calling on people to "join this very special Trump community."
Trump also earned substantial profits from the World Liberty Financial business. He earned $799 million (1.222 trillion won) through this business last year, and hundreds of millions of dollars flowed in when the United Arab Emirates (UAE) purchased about half of the company's stake early last year. Likewise, the Trump family was able to secure profits under a structure that takes 75% of WLFI token sales revenue after deducting certain costs.
However, 85% of the 26,663 wallets tracked by Nansen recorded losses due to the WLFI token. Losses totaled $83 million (126 billion won), while gains amounted to $23 million (35 billion won). The WLFI token currently trades at $0.057, down 82% since September last year.
Nonetheless, Trump appears unlikely to face any particular sanctions, because federal regulators have effectively halted their crackdown on cryptocurrency, the NYT analyzed.
Regarding this, Stephen Gillers, a law professor at New York University, noted that "after Trump leaves office, there is a possibility that investors who suffered losses will file a class-action lawsuit," pointing out that "Trump gave investors the expectation that they could make a lot of money, but he himself cashed out and reaped the profits."
