AI Generated Image
How Trump made more than $1 billion on crypto when most of his coin’s investors lost money
CNN • • general
Key Points:
- President Donald Trump launched the $TRUMP memecoin ahead of his second inauguration, which quickly soared to a $15 billion valuation but has since plummeted 97% to $400 million, causing significant losses for most investors.
- Despite the token's collapse, Trump profited handsomely, earning over $526 million in 2025 from transaction fees, licensing, and token sales linked to his companies, which control 80% of the $TRUMP coin supply.
- Trump attributed his wealth increase to the stock market, but the majority of his 2025 net worth gains actually came from crypto-related revenue rather than direct cryptocurrency investments.
- Memecoins like $TRUMP are highly speculative and risky assets with no intrinsic value, often subject to price surges followed by sharp declines, though $TRUMP was designed to be "rug-pull-proof" with staggered token sales.
- Some investors were motivated by support for Trump, novelty, or potential profits, while major investors gained exclusive access to Trump through events like a black-tie dinner and VIP receptions tied to their $TRUMP holdings.
