A new analysis has revealed that nearly one million investors who purchased the $TRUMP memecoin linked to United States President Donald Trump have collectively lost an estimated $3.8 billion.

The findings, released by cryptocurrency analytics firm Nansen, indicate that approximately 988,900 blockchain accounts were holding investments worth less than their purchase prices by the end of June.

The report suggests that roughly two out of every three people who invested in the digital token have recorded financial losses.

The cryptocurrency experienced a dramatic rise in value shortly after it was introduced in January 2025, just days before President Trump’s inauguration.

Investor enthusiasm initially pushed the token to a record high of about $75.35, attracting both experienced traders and first time investors hoping to benefit from the growing popularity of digital assets.

However, the excitement proved to be short lived, as the value of the memecoin later plunged sharply.

It is now trading at around $1.69, representing a decline of nearly 98 percent from its peak.

Despite the widespread losses suffered by investors, financial disclosures filed by President Trump show that the project generated substantial earnings for him.

The disclosure indicated that he earned approximately $636 million from the $TRUMP memecoin, accounting for nearly half of the estimated $1.4 billion he reportedly received from cryptocurrency related ventures over the past year.

The President has also been associated with World Liberty Financial, a cryptocurrency company established alongside members of his family, although its digital token has also experienced a significant decline in market value.

The report has renewed debate over the regulation of digital assets in the United States. Since President Trump returned to office, his administration has adopted a more supportive approach toward the cryptocurrency industry.

The Securities and Exchange Commission has stated that memecoins will not be treated as securities under existing regulations and has withdrawn several enforcement actions previously filed against cryptocurrency companies.

While supporters argue that the policy encourages innovation and investment, critics maintain that stronger safeguards are needed to protect investors from the extreme price volatility that continues to characterize the cryptocurrency market.

Source: TechCrunch