Trump Memecoin Trader Loses $2.5 Million Amid Major Sell-Off

The Trump memecoin ($TRUMP) crash has left traders reeling, with one investor losing $2.55 million in a single transaction during a widespread sell-off. The market downturn follows unmet expectations during Donald Trump’s inauguration where Trump didn’t mention crypto even once. This triggered a sharp drop in token value and wiped out billions in market capitalization.

Trader Loses $2.55 Million in Single Sale

A trader known as Ansem sold 194,799 $TRUMP tokens at a price of $35.04, netting $6.83 million. However, the trader had originally purchased the tokens for $9.38 million at an average price of $48.14, resulting in a $2.55 million loss. This is one of the largest recorded losses during the sell-off.

Another notable loss came from Los PollosTV, a content creator, who revealed he lost $60,000 after investing in the memecoin. He described the token’s decline as a “rug pull,” pointing to the speculative nature of the market.

The Pump And Dump Show Of Trump Memecoins

The Trump memecoin and Melania Trump’s meme coin (MELANIA) were launched amidst significant fanfare. The tokens were introduced as collectible and entertainment assets, with disclaimers warning they were not financial investments. Despite these warnings, the tokens attracted massive interest, with $TRUMP seeing a 12,000% surge shortly after its launch.

However, the back-to-back launches of $TRUMP and $MELANIA created liquidity issues as traders shifted funds between the two. The situation worsened after Donald Trump’s inauguration speech failed to mention cryptocurrency or memecoins, triggering a 30% drop in $TRUMP’s value and wiping out $3.5 billion in market capitalization within an hour.

Early Traders Reap Enormous Profits

While many traders suffered significant losses, some early adopters made extraordinary gains. When Donald Trump announced the launch of $TRUMP on Truth Social just before his inauguration, many believed the post was fake or his account had been hacked. However, one trader wasted no time and purchased 5.7 million TRUMP tokens for $1.09 million USDC within two minutes of the announcement. He is now sitting on an unrealized profit of $185 million.

The post Trump Memecoin Trader Loses $2.5 Million Amid Major Sell-Off appeared first on Coinchapter.