Trump's digital currency from the moon to the bottom

Trump Coin, created by US President Donald Trump as his official meme coin, has become the subject of much controversy after it dropped by 33% over the past week, and 8% over the past 24 hours.

According to a Reuters report, the move has been extremely profitable for the entities behind the coin, as they have collected nearly $100 million in trading fees in just two weeks.

However, while big investors have made huge gains, thousands of small traders have suffered losses, raising concerns about the impact of celebrity-backed cryptocurrencies on the market as a whole.

Trump was launched on January 17, and its market cap peaked at $14 billion on January 19, just before Trump’s inauguration.

But the rally was short-lived, as the coin has since lost two-thirds of its value.

Despite the sharp decline, trading activity remains high, with the coin recording $2 billion in trading volume over the past 24 hours.

During daily trading, Trump’s coin fell to $17, compared to its high of $74.

Data from Merkle Science and Chainalysis indicate that trading fees from Trump’s transactions ranged between $86 million and $100 million by January 30, with entities supporting them benefiting, most notably CIC Digital, a company owned by Trump.

Blockchain data also shows that at least 50 of the coin’s largest holders exited the market with profits exceeding $10 million each, while about 200,000 wallets, mostly small investors, suffered losses after the initial sell-off.

Despite the large gains for some investors, the coin has been widely criticized, with some arguing that Trump has no actual knowledge or direct involvement in the project, raising questions about his previous commitment to supporting the crypto industry through clear regulatory policies.

Trump had previously expressed interest in cryptocurrencies, especially after making huge profits from NFT sales in 2022.

In light of these developments, close monitoring of Trump’s coin continues, as some see it as an exploitation of political figures’ influence to achieve financial gain, while others consider it a natural part of the development of the cryptocurrency market.