Rebecca Davis, a local conservative radio show host in Little Rock, purchased President Donald Trump’s meme coin one January morning. With no prior knowledge of cryptocurrency but faith in Trump’s business acumen, she invested $32. Her investment initially rose but has since dropped by 85% from its peak. Many small-time investors like Davis have experienced similar losses.
An analysis by The Washington Post found that at least 67,000 new or small-time crypto investors have bet on Trump’s meme coin, injecting $15 million into the venture. However, the majority bought near the coin’s peak, just before the inauguration, and 80% have seen their investments nosedive. Some buyers who spent thousands have lost significant amounts on paper.
Criticism has emerged from congressional Democrats, with legislation proposed to prevent government officials from benefiting from such ventures. Despite this, Trump’s team has profited through trading fees, even as the coin’s value declines.
The Post’s analysis focused on novice buyers who used debit cards via MoonPay, identifying them as likely crypto newcomers. These investors often viewed the coin as a loyalty gesture to Trump or an entry into his family’s business ventures.
Trump’s family business affiliate and Fight Fight Fight, a Delaware-registered company, manage the meme coin project. They own 80% of the coins and benefit from a 1% fee on purchases through their official system.
Despite the coin’s decline, some major buyers remain optimistic, with events planned for top coin holders. However, the majority of investors have incurred losses.
— new from The Washington Post