Ponzi & Scams

Story: Trump Meme Coin’s $3.8 Billion Wipeout Puts Senators on SEC’s Doorstep

By Steven Anderson

1 / 15

From $70 to Under $1.50. The TRUMP token launched with a bang. It shot past $70 not long after it went live, briefly…

2 / 15

Retail Investors Left Holding the Bag. The marketing angle matters here. Warren and Blumenthal called out the promotional tactics around…

3 / 15

SEC Still Silent. The SEC hasn't said whether it will investigate. That silence is probably not surprising — the…

4 / 15

Senators Elizabeth Warren and Richard Blumenthal want the SEC to open a formal investigation into Donald Trump's meme coin.

5 / 15

That number is hard to ignore. Warren and Blumenthal's letter to the SEC lays out a pretty stark picture: while retail investors were bleeding out, Trump and his family…

6 / 15

Not a soft landing. More like a hard crash.

7 / 15

The TRUMP token launched with a bang. It shot past $70 not long after it went live, briefly cracking the top 20 assets by market cap and sitting as the second-largest meme coin…

8 / 15

The development team is also under the microscope. Per the senators' account, the team has been linked to numerous token sales as the price was falling — which, if accurate,…

9 / 15

Warren and Blumenthal also pointed to earlier SEC enforcement actions against similar crypto projects.

10 / 15

See also: CLARITY Act Stall Puts Bitcoin at Risk Before Senates August 10 Recess

11 / 15

The marketing angle matters here. Warren and Blumenthal called out the promotional tactics around the token, suggesting retail investors were misled.

12 / 15

It's worth stepping back for a second. Meme coins are notoriously volatile. That's basically the whole deal — they spike, they crash, most of them go to zero eventually.

13 / 15

The token's dramatic fall also fits a broader pattern that regulators have been watching for a while now.

14 / 15

The SEC hasn't said whether it will investigate. That silence is probably not surprising — the agency rarely telegraphs its moves before they happen.

15 / 15

See also: FBI Agent Busted for Stealing $1 Million in Crypto From Active Investigation Accounts

The Currency Analytics

Want the full story?