Trump Memecoin Generates $350 Million in Revenue, Report Reveals

A recent report by the Financial Times has revealed that President Donald Trump's cryptocurrency project, the Official Trump (TRUMP) memecoin, has generated an impressive $350 million in revenue. This includes $314 million from token sales and $36 million from transaction fees on the Solana blockchain.

The TRUMP memecoin project, which gained considerable attention after its launch, has been linked to various entities associated with Trump. However, it remains unclear how much of this revenue directly benefits Trump personally. According to the Gettrumpmemes.com website, which serves as the official site for the TRUMP memecoin, CIC Digital, a company affiliated with The Trump Organization, and Fight Fight Fight, a Delaware-based entity, jointly own 80% of the token supply.

How Trump’s Memecoin Works

The TRUMP memecoin was officially launched just days before Trump’s return to the White House on January 20. The launch involved the minting of 1 billion TRUMP tokens, with 200 million tokens released in the first batch, and the remaining 800 million set to be distributed over the next three years.

The Financial Times analysis tracked the flow of these tokens by following their movement from creation to wallets and then to Solana-based trading platforms. According to the report, 158 million tokens were deposited into a liquidity pool, allowing traders to buy the memecoins in exchange for Circle’s USDC (USDC) stablecoin.

Sales, Buybacks, and Alleged Price Manipulation

The report highlighted several concerning practices linked to the memecoin’s sales and trading activity. Notably, Trump-affiliated accounts sold the first 100 million TRUMP tokens at a price below $1.05 on the day after the coin’s launch. Shortly after this sale, the accounts withdrew the USDC earned and reinvested $291 million in USDC back into another liquidity pool. This move appeared to be an attempt to stabilize the price of the token, sparking concerns about potential price manipulation.

Furthermore, the analysis revealed that Trump-linked accounts spent approximately $1 million buying back their own tokens at $33.2 on January 19 and 20, in an apparent effort to stabilize the TRUMP price after a significant drop following the launch of Melania Trump’s MELANIA memecoin.

The TRUMP token price has since plummeted by 82% from its peak of $75 on January 19. Despite this significant decline, the 831 million TRUMP tokens still held by Trump-affiliated accounts are valued at an estimated $10.8 billion.

The Surge of Copycats and Legal Scrutiny

The rise of the TRUMP memecoin has sparked widespread attention and led to an explosion of 700 copycat tokens, further fueling concerns about the potential risks in the memecoin space. In addition to this, some critics believe the project may have contributed to controversies such as the Libra token scandal, promoted by Argentine President Javier Milei.

The memecoin craze has not gone unnoticed by lawmakers. House Democrat Representative Sam Liccardo has been particularly vocal in criticizing the concept of presidential memecoins. In late February, he proposed draft legislation to ban public officials and their families from engaging in such activities. Additionally, Assemblymember Clyde Vanel introduced a bill on March 5 aimed at establishing criminal penalties for memecoin rug pulls, in an effort to protect investors from scams in the volatile space.

Regulatory Landscape: The SEC’s Position on Memecoins

While the memecoin market is drawing significant attention from lawmakers, financial regulators, such as the Securities and Exchange Commission (SEC), have largely avoided classifying memecoins as securities. The SEC has reiterated that its regulatory oversight will focus on broader market activities, with other authorities being tasked with addressing issues specific to memecoins.

As the debate around presidential memecoins intensifies, the future of the TRUMP memecoin and others like it remains uncertain, with growing calls for tighter regulations and safeguards for investors in the rapidly expanding digital asset market.

Conclusion: A Memecoin Controversy Unfolds

The TRUMP memecoin has undoubtedly become one of the most discussed projects in the cryptocurrency space. With an initial $350 million in earnings, its success in generating revenue is undeniable, but its controversial methods and the potential for price manipulation have sparked a broader conversation about the risks associated with such tokens. As governments, regulators, and crypto enthusiasts continue to weigh in, the TRUMP memecoin serves as a test case for the future of memecoins and their place in the world of digital assets.