When the U.S. President reported $1.4 billion in income from cryptocurrency projects last year, the figure sounded like a validation of success. More than $600 million came from royalties on the $TRUMP meme coin, while another $500 million or so originated from World Liberty Financial. The family clearly emerged as the victors. Yet behind these statistics lies a different reality: the majority of the token's buyers suffered significant losses.
The $TRUMP meme coin soared to a market capitalization of $15 billion before crashing 97% to $400 million. According to analysts, approximately two-thirds of the wallets that purchased the token are currently in the red. Many investors poured thousands of dollars into the asset hoping for quick growth, while major players lost millions. The token's price was irrelevant to the family, as royalties and sales had already secured billions in inflows.
This episode illustrates the classic asymmetry of the crypto market. Leveraging their influence and audience reach, the Trump family launched the project with minimal personal risk. Investors, meanwhile, operated under conditions of information inequality and emotional hype. While some cashed out at the peak, others held onto assets that were rapidly losing their value.
Such schemes follow a familiar logic: in high-volatility games, those who control the launch and distribution come out on top. Retail participants often serve as the "fuel" for growth, only to bear the brunt of the subsequent correction. This is not simply a matter of luck or misfortune; it is a structural reality where power and connections turn crypto into a tool for capital concentration.
Imagine a river with a dam at its source: the water flows primarily to those who control it, leaving only scraps for those downstream. The same applies to meme coins: creators and those close to them capture the bulk of the value, while mass buyers risk being left with worthless assets.
This case serves as a reminder that in crypto investing, it is crucial to distinguish between those who set the rules and those who pay for them. The Trump family demonstrated how political and media capital can be converted into financial gains with minimal personal loss. For everyone else, the lesson is simple: in such projects, the gains of a few are almost always funded by the losses of many.
