NYT: Donald Trump’s TRUMP Token Leaves Nearly a Million Buyers Down $3.81B

Nearly 1 million investors, or roughly two-thirds of those who purchased President Donald Trump’s branded TRUMP memecoin, have lost a combined $3.81 billion through the end of June, according to The New York Times, citing data from crypto analytics firm Nansen. The token has plunged 97% from its peak price of $75.35 to $1.76 on July 3.

President Trump generated $636 million from the token, as revealed in his annual financial disclosure, which also showed $2.2 billion from his business ventures in 2025. Nansen noted that Trump profited from transaction fees regardless of the token’s price movements. He frequently promoted the coin on Truth Social after its launch three days before his inauguration.

“He is leveraging the power of being president to launch currencies, when he seems trustworthy in the public’s eye,” said Nicholas Pinto, a crypto trader and 2024 Trump voter who lost half of his $500,000 investment in the token. “It is almost a legal scam.”

The White House denied that Trump profited at supporters’ expense. “President Trump proudly made the United States the crypto capital of the world,” said spokeswoman Anna Kelly. “All actions by President Trump and his administration are taken in the best interest of the American people.”

The TRUMP token is part of broader crypto ventures tied to Trump, including World Liberty Financial, whose WLFI token has fallen 82% since September. Trump earned $799 million from World Liberty, boosted by an early 2025 UAE investment. A World Liberty spokesperson attributed the decline to broader market conditions.

While about 500,000 early and sophisticated buyers captured $4 billion in profits before the crash, legal experts note that federal regulatory changes may limit government action. The SEC halted memecoin scrutiny in February 2025, and the TRUMP token website disclaimed the tokens as an “expression of support,” not an investment.

However, NYU legal ethics professor Stephen Gillers warned of potential civil lawsuits. “Trump back when he was a real estate developer boasted that he plays ‘to people’s fantasies,’” Gillers said. “Here he seems to have encouraged supporters to invest with the expectation they could anticipate riches — even as he himself was cashing out.”

Source: https://news.bitcoin.com/nyt-donald-trumps-trump-token-leaves-nearly-a-million-buyers-down-3-81b/