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810,000 Investors Have Lost Over $2 Billion on Trump Coin – NYT

The meme coin — $Trump — was launched with an opening sale price of just 18 cents and went on to hit a peak of $75 per token within two days


Trump entering his inauguration as the 47th president of the United States inside the U.S. Capitol building in Washington
Trump entering his inauguration as the 47th president of the United States inside the U.S. Capitol building in Washington, DC. Photo: Reuters

 

Traders who bet on long term growth for US President Donald Trump’s newly launched cryptocurrency have cumulatively lost billions of dollars following a sustained crash in the meme coin’s value, the New York Times reported.

More than 800,000 people who bought the coin have suffered losses in total worth more than $2 billion, the NYT report said. It noted that the Trump family and its partners had, meanwhile, earned nearly $100 million in trading fees since the coin was launched three days before the presidential inauguration.

The meme coin — $Trump — was launched with an opening sale price of just 18 cents and went on to hit a peak of $75 per token within two days. It has since continued to lose value, however, and is currently trading at a value of about $16 per token.

The NYT report also noted that some early traders who bought and sold the coin quickly made big gains, including one unknown trader who minted $109 million in just two days. Some of those early traders appeared to be based in China, it added, citing a post from Chinese crypto platform Lianzhi.

Experts who spoke to NYT cited concerns about Trump publicising his own cryptocurrency while pushing to end regulatory scrutiny of the industry. “The president is participating in shady crypto schemes that harm investors while at the same time appointing financial regulators who will roll back protections for victims and who may insulate him and his family from enforcement,” one expert said.

Read the full report: The New York Times

 

Also read:

Ethics Experts Staggered by Trumps’ Launch of Crypto Coins

Trump’s Crypto-Friendly SEC Chief Helps Bitcoin Top $100,000

Crypto Sector Eager for Policy Overhaul After Trump’s Big Win

Global Watchdog Unveils Regulatory System For Crypto Sector

 

Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at [email protected]