A cryptocurrency trader suffered a significant $207,000 loss within an hour due to the sharp price change of the TRUMP token, bringing renewed attention to the volatility of meme tokens.
The Rise and Fall of the TRUMP Token
On March 23, 2025, following Donald Trump's post on Truth Social, the TRUMP token value surged by 13%. Encouraged by the rise, a trader who had previously earned $108 million on this token invested $5 million. However, the price plummeted an hour later, leading to financial losses. Initially, the token launched on the Solana blockchain, rising from $10 to $75. By March 24, 2025, the price had dropped to $11.95.
Meme Tokens and Investment Risks
The trader's losses reopened discussions on the risks of investing in meme tokens. Donald Trump's public endorsement of the TRUMP token raises concerns about market influence and possible manipulations. Despite the absence of proof of misconduct, this incident once again questions the security of investments in meme tokens.
Legislative Initiative: The MEME Act
In Washington, Congressman Sam Liccardo proposed the MEME Act, a bill aimed at restricting federal officials and their families from profiting from meme tokens. The bill seeks to prevent conflicts of interest and reduce the impact of prominent figures on unstable markets.
The TRUMP token incident underscores the unpredictability of meme tokens, heavily reliant on online hype rather than fundamental support. The trader's journey from fortune to loss highlights the investment risks in such assets.
