Report: More Than 1 Million Wallets Show Losses on Trump-Linked Crypto Tokens as Trump Reports $635M in Royalties
AI Market Summary
Reporting that ~1.48M wallets in the Official Trump meme coin and ~85% of secondary buyers of WLFI remain underwater, alongside disclosure of ~$635M in Trump crypto royalties, heightens optics of insider enrichment and potential conflicts of interest. The narrative reinforces scam/rug-pull concerns, undermining retail confidence and amplifying calls for tighter rules on politically linked tokens, which can weigh on near-term risk appetite in the meme-coin segment.
Impact level
● Medium
Affected assets
TRUMPSOL/USDT+4.30%
AI Insight · TRUMPSOL/USDTAI Insight
▼ Bearish
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New analysis highlighted widespread investor losses tied to crypto projects linked to President Donald Trump, while Trump's latest annual financial disclosure reported substantial income from the same ventures.
Veteran investor Ross Gerber cited a Wall Street Journal report indicating that roughly two-thirds of wallets that bought the Official Trump (TRUMP) meme coin are currently sitting on unrealized losses. The report put that figure at about 1.48 million cryptocurrency wallets.
The same reporting found that about 85% of secondary-market buyers of World Liberty Financial's WLFI token remain underwater. Gerber characterized the situation as a "Trump crypto rug pull" and said more than one million people had lost money, though wallet counts do not map cleanly to individual investors because one person can control multiple wallets and some wallets may represent pooled holdings.
TRUMP saw a sharp boom-and-bust cycle after launching in January 2025. Its market capitalization climbed to nearly $15 billion as retail demand surged, before the token shed about 97% of its value, cutting its market cap to roughly $404 million.
Despite the collapse in token value, Trump's disclosure shows he earned approximately $635 million in royalty income from the crypto project over the prior year. Critics argue the figures underscore a disconnect between Trump's financial gains and the large paper losses borne by retail buyers.
Gerber has previously called Trump's crypto activity a "grift," arguing it undermines confidence in the broader crypto market, including Bitcoin, by reinforcing concerns that politically connected token launches can primarily reward insiders while exposing retail investors to heavy losses.
Separately, Senator Elizabeth Warren has renewed calls for tougher crypto rules aimed at preventing elected officials and their families from personally profiting from digital-asset ventures while in office, citing potential conflicts of interest.