Nearly One Million Investors Lose $3.8 Billion on Trump Cryptocurrency Collapse

Nearly one million investors lost a total of $3.81 billion after purchasing Donald Trump's cryptocurrency, $TRUMP, according to data from research firm Nansen reported by The New York Times. Trump revealed that his various business ventures would earn him $2.2 billion in 2025, including $636 million from the launch of the $TRUMP coin. The cryptocurrency was unveiled three days before his January 2025 inauguration, with Trump urging his followers on social media to buy the coin, calling it a celebration of victory.

The $TRUMP token was designed with significant advantages for Trump and his family, who held a large reserve of coins obtained at no cost, profiting on paper whenever the price rose. Trump also earned commissions on every trade. Throughout 2025, he leveraged his social media presence to encourage fans to buy more, driving the coin's price from $1 to a peak of $75.35 within days. However, the price then rapidly collapsed and continued a slow but steady decline, currently trading at $1.61, a 97.9% drop from its peak.

Nansen's analysis shows that 988,905 crypto wallets holding $TRUMP suffered combined losses of $3.81 billion. Investor Nicholas Pinto told The New York Times he lost about half of his $500,000 investment, describing the scheme as "almost a legal scam" due to Trump's presidential influence lending it credibility. While nearly 500,000 wallets made profits totaling $4 billion, these gains were concentrated among early buyers and professional investors using automated trading tools to buy before price surges and sell near peaks. Most retail investors, however, faced heavy losses.

The White House responded by stating that President Trump is proud to make the U.S. the global crypto capital and that all actions taken by Trump and his administration were for the benefit of the American public.