TRUMP Coin, the cryptocurrency launched by U.S. President Donald Trump, has accumulated nearly $100 million in transaction fees for the entities behind it in less than two weeks, three blockchain analytics firms, including Merkle Science and Chainalysis, estimate. However, this investment resulted in tens of thousands of small traders losing money.
It is understood that "TRUMP Coin" was launched on January 17 and soared rapidly. By January 19 (the day before Trump's inauguration), the total market value reached a peak of US$14.5 billion. But the currency has since lost two-thirds of its value. Blockchain analysis shows that as of January 30, the transaction fees of "TRUMP Coin" have reached 86 million to 100 million US dollars, far exceeding the previously reported figures.
It is worth noting that one of the entities behind “TRUMP Coin” is CIC Digital, a Trump-owned company. The coin’s official website states that CIC Digital will generate revenue from its trading activities. However, it is currently impossible to confirm how much Trump personally received from it, nor the ownership of other entities.
Blockchain analysis shows that some of the transaction fees went to Meteora, a little-known cryptocurrency exchange where “TRUMP Coin” was first listed. Chainalysis said that at least 50 large investors each made profits of more than $10 million on "TRUMP Coin", while about 200,000 crypto wallets (mostly small holders) suffered losses.
And the creator of “TRUMP coin” earned huge trading fees by providing liquidity on the Meteora exchange. Meteora allows creators to “mint meme coins and earn fees for life,” while exchanges also charge fees.
MerkleScience estimates that three major wallets earned $86 million in transaction fees through Meteora between January 17 and January 30, while Chainalysis assessed it at $94 million. A third blockchain analytics company estimated that as of January 29, total transaction fees were close to $100 million.
Trump’s Cryptocurrency Ambitions and Controversy
Trump promised to become the first "cryptocurrency president" in the United States and make the United States the "global cryptocurrency capital" by reforming regulations and promoting digital asset ownership. His son Eric Trump said he was proud of the “continuing achievements in the cryptocurrency field” and said “we are just getting started.”
However, Trump's cryptocurrency investments are large and opaque, drawing criticism from ethics experts and Democrats.
"There are concerns that he actually has the power to regulate his own business," said Columbia University law professor Richard Briffault.
Specifically, the ownership of “TRUMP coins” is hidden behind an opaque limited liability company. FightFightFight, a Delaware-registered company, is the owner of the coin’s official website, and its main contact is Trump’s business partner William Zanker. FightFightFight is owned by CICDigital and CelebrationCards, the latter of which also generates revenue from the trading activity of "TRUMP coins".
According to the official website, up to 1 billion “TRUMP coins” will be sold in the next 36 months. Initially, 200 million coins were issued to the market, and the remaining 800 million coins were held by FightFightFight and CIC Digital, worth approximately US$16 billion at current prices.
Summarize
The launch of "TRUMP Coin" brought huge profits to Trump and his related entities, but also caused a large number of retail investors to lose money. The opacity of its ownership and trading fees has sparked widespread controversy, further highlighting the high risks and lack of regulation in the cryptocurrency market. As Trump continues to push his cryptocurrency ambitions, developments in this space are worth paying close attention to.