Investors have lost over $4.3 billion in Trump's official memecoin, which has dropped 93% from its peak since its 2025 launch. While Trump affiliates profited over $600 million through insider trading and fees, retail investors suffered major losses. The token's value is largely driven by speculation around exclusive event access rather than utility, highlighting regulatory concerns.
Background
Memecoins are joke cryptocurrencies with no intrinsic value, often driven by social media hype and celebrity endorsements. Regulatory scrutiny around celebrity-promoted cryptocurrencies has increased due to risks of market manipulation and investor exploitation.
- Source
- Ars Technica
- Published
- Apr 22, 2026 at 07:00 PM
- Score
- 6.0 / 10