Around 43% of winners from Donald Trump’s $TRUMP crypto sweepstakes have lost money on their investment, with total losses reaching nearly $9 million since its January launch. The gala, featuring ticket holders and those with significant crypto holdings, raises questions about the implications of merging personal profit with political influence. The SEC’s evolving stance on meme coins adds another layer of complexity to the ongoing story.
Donald Trump is hosting a gala at his private golf club tonight for the top holders of his meme coin, $TRUMP. However, the enthusiasm surrounding this cryptocurrency has hit some bumps in the road. An analysis by the Guardian shows that almost half of the attendees—43% to be exact—have actually lost money on their investments in $TRUMP since its launch in January. Now, as the night unfolds, it appears the glory of winning isn’t quite what it seems.
The gala’s guest list comprises winners of a recent competition where holders with the largest amounts of $TRUMP won tickets for this exclusive gathering. Each winner in the top 220 had to hold onto their $TRUMP tokens from late April to early May to secure a coveted seat. Following Trump’s announcement, coin prices jumped over 50%. But it seems, amidst the hype, many have paid a hefty price—or worse, faced heavy losses.
From those winners, 95 have been reported as experiencing a aggregate loss totaling a staggering $8.95 million. A contestant with the username “GAnt” leads the losers, regrettably down by $1.06 million despite being in fourth place overall. Another, named “Meow”, dragged down by $621,000. The negative trend is expanding, as predictions estimate around 764,000 wallets owned mostly by everyday investors have also lost money on this token, according to Chainalysis.
Amidst all this financial turmoil, a select few appear to be thriving. Just 58 wallets reportedly have made over $10 million from $TRUMP. Meanwhile, about 40% of attendees now hold less than one token, indicative of buyers who entered the game during the initial excitement and jumped ship when the price hit its peak. While some managed to turn substantial profits—like user “UVIL”, who raked in over $7 million—others are left holding the bag.
Ticket prices for this private dinner ranged dramatically, with attendees paying from $55,000 to a whopping $37.7 million. On average, seats went for close to $1 million, according to insights shared by Nansen, a blockchain analytics firm. It’s worth noting, though, that some attendees may not even still own the coins they splurged to acquire a ticket, raising eyebrows about the underlying motivations behind this gala.
James Angel, a Georgetown University professor, commented on this dynamic, stating, “It just shows that, when you elect a clown, you get a circus.” This gathering, while ostensibly a celebration of $TRUMP, highlights a wider world of speculation and perhaps even opportunism tied to Trump himself.
While Trump’s office claims lack of direct involvement with $TRUMP management, it’s clear that his affiliates, like CIC Digital LLC, significantly benefit from the coin’s trading. These entities reportedly raked in $320 million in trading fees alone as recently as early May. Although the SEC traditionally views cryptocurrencies as securities, changes under new leadership have shifted discussions, particularly for meme coins, which regulators now liken to collectibles—thus escaping some regulations.
Some experts argue that $TRUMP should still fit under the securities classification due to its nature as a speculative investment tied tightly to Trump’s stature. Corey Fraye, from the Consumer Federation of America, suggested this scheme could violate securities laws due to the expectation of profit.
Additionally, the ethical dilemmas surrounding attendees and their financial stances raise questions about influence and policy-making. Notable figures include Justin Sun, who previously faced charges of market manipulation. Companies hoping to curry favor with Trump have also invested significant sums in $TRUMP, with Freight Technologies and GD Culture Group reportedly spending millions to gain leverage in future negotiations.
In the end, this gala—while a glitzy affair—uncovers a series of deeper concerns about market manipulation, financial viability, and ethical governance tied to the whims of celebrity and politics. The real intrigue might not just be how much money the attendees made or lost but how such machinations affect the broader market and average investors.
Tonight’s gala for $TRUMP holders at Trump’s golf club reveals a precarious picture. While some attendees celebrate their supposed victories, a significant portion are grappling with hefty losses. This event bridges the line of crypto speculation, political influence, and ethical concerns about the intertwining worlds of finance and governance. With recent attitudes toward cryptocurrencies changing, what lies ahead for those caught up in Trump’s financial circus is uncertain.
Original Source: www.theguardian.com
