Trump’s Crypto Crashes 80%, Investors Lose $12 Billion

Donald Trump’s cryptocurrency, $Trump, has taken a massive hit, wiping out over $12 billion in value in just a month. The coin, launched on January 17, just days before Trump’s inauguration, quickly soared in value, but it has since crashed by over 80% from its peak on January 19.

At its highest, the meme coin was worth $15 billion, but by Thursday, its value had plummeted to just $2.7 billion, following a broader downturn in the crypto market. Even Bitcoin has seen a 20% drop since reaching an all-time high on Trump’s inauguration day.

Trump’s Personal Crypto Fortune Shrinks

Trump himself has seen a major loss in his cryptocurrency holdings, with his paper fortune shrinking by $50 billion. Unlike regular investors who bought in at high prices, Trump hasn’t actually sold any of his coins—so his losses aren’t locked in.

However, many of his supporters who invested in $Trump as a symbol of loyalty or a gamble on its future growth are now facing real losses. With enthusiasm fading and the market cooling off, the coin's early hype has turned into regret for many backers.

It’s not just Trump’s crypto suffering. A meme coin endorsed by former First Lady Melania Trump has performed even worse, plunging 94% since January 20.

Criticism Grows as Lawmakers Push for Regulation

Trump has promoted himself as America’s first “crypto president”, even appointing venture capitalist David Sacks as his White House “crypto tsar.” But many investors are frustrated, claiming the administration has failed to take real action—such as establishing a federal Bitcoin reserve, something some expected him to pursue.

Now, Democrats in Congress are looking to crack down on political figures launching their own cryptocurrencies. Congressman Sam Liccardo has introduced the Modern Emoluments and Malfeasance Enforcement (Meme) Act, which would ban senior government officials and their families from creating or promoting meme coins.

Liccardo warned that the Trump family’s involvement in cryptocurrency raises serious ethical concerns, such as financial exploitation, insider trading, and foreign influence over U.S. leadership. If passed, this law would apply to the president, vice president, members of Congress, and White House officials, as well as their family members.

The Rise and Fall of Meme Coins

The collapse of $Trump highlights the risky nature of meme coins, which often attract buyers through social media hype rather than real-world value. Unlike Bitcoin or Ethereum, which have long-term potential in finance, meme coins are mostly speculative bets or symbolic tokens tied to celebrities, influencers, or political figures.

In recent months, many influencers and public figures have launched their own digital currencies, only to see their values crash after an initial spike. Trump’s crypto collapse serves as yet another cautionary tale in the volatile world of digital currency.

Also Read: Think Twice Before Investing in Dogecoin or $TRUMP: Smarter Alternatives to Consider