IMPORTANT HIGHLIGHTS
- Cryptocurrency exchanges made $172 million from Trump Memecoin trading.
- Only 45 wallets, out of over 712,000, generated $1.2 billion.
- The token was listed 30x faster than other popular memecoins.
Trump’s Entry into Crypto Took Everyone by Surprise
When Donald Trump announced his official crypto token, the Trump Memecoin, back in January, the crypto world was caught off guard.
The coin exploded in value, reaching an all-time high (ATH) of $75 within days. For early investors, it was a jackpot.
But for many others, things didn’t end quite as well.
It wasn’t long before questions started swirling.
It’s been reported that over 80% of the token’s supply was in the hands of Trump’s family and their close associates.
That level of control raised some serious red flags. After all, if a small group holds most of a token, they could dump it at any time crashing the price and leaving regular investors with huge losses.
Crypto Platforms Made $172 Million But at What Cost?
While the public debated the fairness of the launch, top crypto exchanges were busy making money.
According to an investigation by ten of the biggest crypto trading platforms including Binance, Coinbase, OKX, MEXC, and Bitget earned a combined $172 million in trading fees just from listing and trading the Trump Memecoin.
But that’s not the whole story. Just 45 wallets made an estimated $1.2 billion in profits during the first six months.
At the same time, more than 712,000 wallets are currently losing money, totaling $4.3 billion.
So yes, while some internal sources hit gold, most of the everyday traders were left holding the bag.
Why Was Trump’s Crypto Listed So Fast?
What really raised eyebrows was the lightning-fast listing process. Within 48 hours of the introduction of Trump Memcoin, eight of the ten largest cryptocurrency.
exchanges listed it. It was listed by the coinbase three days later, and joined the upbit after a month.
To put that into perspective, other big-name memecoins like PEPE, BONK, WIF, and even FARTCOIN had to wait an average of 129 days to get the same exposure.
So, why the rush for Trump’s token?
According to several exchanges, the decision was based on massive user demand.
Bittet’s CEO, the grassie chain explained it in such a way: “Crypto was echoing with space propagation.
With any token attracted a lot of attention, we realized that it was necessary to list Trump quickly.”
In other words, exchanges were simply riding the wave.
A Small Group Gained Big But the Majority Lost
Let’s be honest hype can be powerful in crypto. It drives demand, moves markets, and makes people act fast.
But in the case of Trump Memecoin, it seems that hype mostly benefitted a select few.
Because the Trump family and their partners reportedly owned 80% of the token’s supply, they were in a position to profit heavily especially early on.
And as the price surged, those who got in early saw massive gains. But once the hype died down, the price plummeted falling more than 87% from its peak.
As a result, the average holder is now deep in the red.
Many investors are questioning whether the token was ever meant to serve a purpose beyond quick profits for insiders.
Is This the Future of Crypto Launches?
The Trump Memecoin saga highlights a growing trend in the crypto world:
celebrity driven launches getting fast-tracked onto major platforms. While the exchanges profited big, many retail investors got burned.
So, what should we learn from this?
First, speedy listings don’t always mean quality.
Just because a token gets listed fast doesn’t mean it’s a safe investment. Second, concentrated ownership is risky.
It gives too much power to too few hands. So, whenever there’s a merger between politics and cryptocurrency, investors need to look more closely.
Regulators might examine these kinds of launches more closely as the market develops.
Stricter regulations pertaining to ownership, transparency, and listing requirements may result from that.