Updated
Updated · Newsweek · Jul 2
Trump Meme Coin Erases 96% of $10,000 Stake as Crypto Ventures Yield $1.4 Billion
Updated
Updated · Newsweek · Jul 2

Trump Meme Coin Erases 96% of $10,000 Stake as Crypto Ventures Yield $1.4 Billion

3 articles · Updated · Newsweek · Jul 2

Summary

  • $10,000 put into the Official Trump token on Jan. 20, 2025 would be worth about $364 by July 1, 2026, after the coin fell from roughly $45.47 to $1.66.
  • Newsweek's comparison showed the drop far outpaced other benchmarks: the same $10,000 in Bitcoin would be worth about $5,793, while an S&P 500-tracking investment would have grown to roughly $12,298.
  • Robert R. Johnson of Creighton University said the collapse fits the speculative pattern of meme coins, which rely on "Greater Fool Theory" dynamics rather than fundamentals and can unravel once buyers dry up.
  • Trump-linked entities still hold 80% of the token, currently valued at more than $3 billion, and outside estimates tied roughly $1.4 billion of Trump's disclosed income to crypto ventures including businesses connected to $TRUMP.
  • That split highlights how creator revenues and investor returns can diverge sharply in meme coins, even as the White House rejects conflict-of-interest concerns around Trump's expanding crypto business.

Insights

How did creators earn $1.4 billion from a meme coin that erased 96% of its value for investors?
With meme coins now classed as collectibles, what protects investors from future celebrity-backed crypto ventures with massive insider gains?
How are ethical conflicts addressed when a president's businesses earn billions from assets bearing his name?