Trump’s memecoin caused billions of dollars in losses for investors, but Trump Organization and its partners made millions in the process. More than 813,000 wallets that invested in Trumpcoin collectively lost over $2 billion, causing the token’s market value to plummet by a quarter from its peak. The memecoin launched with President Donald Trump’s name led to significant losses for investors, but it brought millions of dollars to Trump Organization and its affiliates. According to data from blockchain analysis company Chainalysis, over 813,000 crypto wallets that invested in the $TRUMP token suffered losses exceeding $2 billion within three weeks of its launch. Meanwhile, Trump Organization and its associated entities earned approximately $100 million in transaction fees during this period. Major Crash: From $75 to $16 The $TRUMP token, introduced on January 17, experienced a rapid rise, reaching $75 on January 19 and increasing its market capitalization to $14.75 billion, but this peak was short-lived. The memecoin faced a steep decline in just a few weeks and is currently trading around $16. Its market value also dropped by three-quarters to $3.72 billion. Despite the substantial losses incurred by investors, Trump Organization and its partners profited significantly from this downfall. According to Chainalysis, for every $1 transaction fee in the Trump crypto ecosystem, investors lost $20. However, a large portion of this $100 million transaction fee has yet to be converted into cash. Early Investors’ Big Gains Some investors in the speculative $TRUMP token made significant profits. An investor who bought around 6 million tokens at 18 cents on the first trading day managed to sell them within two days, making a profit of $109 million. However, such high profits were not the norm for most investors. Many investors suffered losses after buying the token at high levels and experiencing a sharp decline. “Memecoins Have No Real Value” Trump’s speculative digital currency is not the only asset in the cryptocurrency market bringing investors substantial losses in a short amount of time. Leonard Kostovetsky, a finance professor at Zicklin School of Business, mentioned in an interview with Fortune last month that memecoins have no real value and are purely viewed as speculative bubbles. Trump promoting the memecoin through his social media platform X also sparked ethical debates. Consumer advocacy group Public Citizen sought investigations by the Justice Department and the US Government Ethics Office to determine whether Trump was illegally soliciting gifts through the memecoin. Former Chairman of the US Commodity Futures Trading Commission and senior member at Harvard University, Timothy Massad, suggested that states and major companies could indirectly provide financial support to Trump by purchasing the $TRUMP token to establish favorable relations with the Trump administration. In a statement to CNBC, Massad pointed out that “Trump Organization took advantage of this project before the inauguration ceremony, which could open the door to conflicts of interest as much in the future as in the past.”