While the U.S. President Donald Trump’s warnings around regime-changing attacks on Iran trends all over the news media, the controversy has spilled over into broader discussions about Trump’s brand, including the much-talked-about launch of $TRUMP and $MELANIA meme coins last year.
A fresh CryptoRank report has reignited debate over Trump’s memecoins, revealing that retail investors have absorbed more than $4.3 billion in losses, while insiders pocketed at least $600 million. The findings, circulating widely on social media and crypto news outlets, highlight a stark 20-to-1 loss ratio for everyday holders compared with early participants.
Launched in early 2025 around Donald Trump’s inauguration, both the tokens were tied to the President and First Lady, initially drawing massive attention. Donald Trump’s $TRUMP meme coin peaked near $75 before collapsing 92% to roughly $3.50-$3.70, while $MELANIA fell 99% from about $13 to around $0.11—as per market data.
CryptoRanks cites that nearly two million wallets remain underwater as of now. Meanwhile, 45 whale wallets extracted a combined $1.2 billion, and $2.7 billion in insider-held tokens stay locked until 2028, potentially adding future selling pressure.
Insider trading accusations
The disparity has fueled accusations of a classic pump-and-dump scheme, amplified by the high-profile endorsements. A viral X post from lawyer Bill Morgan sarcastically questioned why no agency has stepped in, directly tagging former Securities and Exchange Commission (SEC) Regional Director Marc Fagel.
Fagel responded skeptically, arguing securities laws likely don’t apply and questioning whether regulators should chase “stupid” investment choices. Others countered that consumer protection principles should shield even naive buyers from misleading promotions.
Industry observers note the meme coins operated in a gray area the Gary Gensler-era SEC largely left alone, exempting many pure meme tokens from registration. Still, the scale of retail damage, spread across small holders, has drawn parallels to broader crypto risks.
Also read: Democrats Vs. Trump: Stablecoin Regulation or Backend Deal for WLFI?