A cryptocurrency contest linked to Donald Trump's meme coin has garnered media attention, attracting more than $148 million from eager buyers hoping to meet the US president. Promoted as a unique chance to attend a gala at Trump's private golf resort outside of Washington, D.C., the event garnered international notice and significant investments in the $TRUMP meme coin. The top 25 coin holders received a private VIP tour and reception, while the top 220 coin holders were invited to the May 22 banquet.
The $TRUMP meme coin, unveiled in January 2024, was notably on a spending spree after its revelation over Trump's Inauguration weekend. That price rose to as much as $75 and dipped to as little as $7.50. As the competition came to a close on May 12, the coin was trading at roughly $14. The top 220 holders' time-weighted value amounted to almost $147.6 million, according to Inca Digital, a crypto analytics company.
Among the largest known holders was a wallet called "SUN" that had held $18.5 million worth of the $TRUMP. The wallet is presumably associated with Seychelles-based crypto exchange HTX. Chinese-born entrepreneur and HTX board member Justin Sun has relationships with the coin project. HTX has not responded for comment, and Sun has publicly put his money — a $75 million investment — where his mouth is by investing in the Trump family's crypto venture, World Liberty Financial, and sitting on as an adviser.
Other prominent investors include companies from Singapore and Hong Kong. Meanwhile, nearly 600,000 wallets that participated in the coin's trade have collectively lost $3.9 billion, Inca Digital noted, referring to wallets that engaged in the coin's trade. While a handful of wallets might have made millions, the vast majority of trading has resulted in losses. More than $117 million in losses had followed the dinner announcement, and only about $1.35 million had wound up in the works of those tied to Trump's own family.
The coin's marketing website, GetTrumpMemes.com, announced the winners and promoted the event as the "most EXCLUSIVE INVITATION in the world." However, the event's terms stipulated its cancellation and Trump's absence.
Ethical questions have clouded the enterprise, with Democratic lawmakers calling for investigations into whether the coin violates United States ethics laws. Senator Richard Blumenthal is investigating the matter in the Senate. Other Democrats have also sponsored bills to limit how much presidents and lawmakers can profit from crypto assets. Senator Chris Murphy dubbed the coin "the single most corrupt act I have ever seen a president commit."
Adding more façade to the whole issue, the American DOJ had just dissolved its crypto enforcement team. Critics argue that this dilutes oversight at a moment when Trump's own family seems to be benefiting from loosened rules. A DOJ spokesperson added they are still working on cross-indicting for crypto crimes.
The Trump family has even accumulated 80% of the meme coin supply, which now stands at $2.74 billion. Transaction fee revenue already amounts to $320 million. They are also among a growing number of members of the family who hold cryptos, trading platforms, exchange-traded funds, mining operations, and a new stablecoin.
Kali, a small investor from Hawaii, shared her experience of investing $10,000 in the $TRUMP meme coin, hoping it would earn her an invitation to the dinner. As the coin's price fluctuated, she was holding out hope to recoup her investment. Like thousands of others, her losses underscore broader concerns about financial risk and the uncertain future of politically branded cryptocurrency ventures.
