jakiro
Since its launch in mid-January, the official meme coin of US President Trump—The price of Trump coins has fallen from a high of $76 to around $17, down nearly 80%.
This lightning decline means that many investors are forced to be trapped.According to reports prepared by blockchain analytics firm Chainalysis and the New York Times,The decline in Trump’s currency caused losses to 810,000 investors, with a total loss of more than $2 billion.
Unlike these investors who lost money, early traders and insiders of Trump coins were estimated to make $6.6 billion in net profit.Chainalysis added that about less than 700,000 traders profited from trading on Trump coins.
Another analyst firm, Nansen, pointed out that most of the early profiters of Trump coins were almost large buyers, with 31 of them making $669 million in just a few days.Most of the people who lose money in the later stage are retail investors.
Cut leeks
After mining the material, it was found that early buyers of Trump coins were mostly insiders.The first public bet on Trump coins was created 3 hours before Trump announced the issuance of meme coins, and his bet amount was as high as $1 million.
In the first few minutes of starting the transaction, a crypto wallet with identification code 6QSc2Cx received a large number of new tokens at an opening price of 18 cents per piece, totaling 5971,750 pieces.The price of this batch of meme coins then soared, quickly reaching $75 per coin.
In addition, the Trump currency was created 12 hours before Trump announced the news, which also provides plenty of preparation time for insiders.
In addition to this group of early large investors, the Trump family is the one who benefited the most on the surface.According to Chainalysis data, nearly $100 million in transaction fees flowed to the Trump family and their partners, but most of the proceeds have not been fulfilled.
For some regulators and analysts who are cautious about meme coins, the huge volatility of Trump coins is undoubtedly very worrying.
Corey Frayer, a former cryptocurrency adviser at the U.S. Securities and Exchange Commission, said Trump is involved in cryptocurrency programs that harm investors; at the same time, the financial regulator he appointed will revoke protections for victims and may allow him and himfamily members are protected from supervision.
