The entities behind the Official Trump meme coin have generated nearly $100 million in trading fees in just a few weeks, while tens of thousands of small investors have incurred losses, a recent survey reveals.

Trading Fees and Losses

The Official Trump meme coin, endorsed by President Donald Trump, has been a lucrative venture for those behind it, including a company tied to Trump. According to estimates by three firms, including Merkle Science and Chainalysis, trading fees on the TRUMP meme coin ranged between $86 million and $100 million by January 30.

A company owned by Trump, CIC Digital, is among the beneficiaries of these trading fees. The meme coin’s official website states that CIC Digital will “receive trading revenue derived from trading activities,” although it is unclear how much of the fees have gone directly to Trump himself.

Investor Losses and Volatility

While major investors have profited from the TRUMP meme coin, with at least 50 investors making over $10 million each, roughly 200,000 wallets with smaller holdings have lost money. This volatility has raised concerns among analysts, who warn that crypto traders should expect “continued volatility” in the market.

In a statement to Reuters, Eric Trump defended the venture, saying that the TRUMP meme coin “is currently the hottest digital meme on earth. We are just getting started.”

Scams and Market Impact

The launch of the TRUMP meme coin triggered a wave of scams, with 6,800 fake tokens and 91 fraudulent dApps flooding the market. According to blockchain forensic firm Blockaid, scammers exploited the hype, creating a 206% spike in tokens using the “Trump” name within just 48 hours of launch.

Tips for Crypto Investors:

  • Be cautious of scams and fake tokens, especially during periods of high market volatility.
  • Conduct thorough research before investing in any cryptocurrency or meme coin.
  • Monitor market trends and be prepared for potential losses.

Stay up-to-date with the latest news and developments in the world of cryptocurrency and finance on Global Crypto News.

Post Views: 1