Reports have emerged of a notable loss for a major player, or ‘whale’, in the world of cryptocurrency over the weekend. According to digital currency tracker Lookonchain, this investor suffered a significant loss on the controversial Official Trump (TRUMP) memecoin.
Lookonchain, reporting on social media platform X, detailed that the whale invested $5 million of Circle’s USDC stablecoin to purchase TRUMP memecoins. This transaction occurred immediately after President Donald Trump posted a message on his social media platform, Truth Social, expressing his fondness for the cryptocurrency with a simple “I LOVE $TRUMP”.
However, just an hour after acquiring the TRUMP memecoins, the whale decided to sell, consequently realizing a loss of $207,000 on the trade. Despite the loss, it’s important to note that it pales in stark contrast to the substantial gains the whale had made earlier in the year. According to Lookonchain, the whale had previously spent 1.09 million USDC to buy 5.97 million TRUMP, subsequently making a staggering profit of $108 million.
The Official Trump memecoin was launched in mid-January, mere days before President Trump took office. Since its inception, the memecoin has sparked widespread controversy both within and outside cryptocurrency circles, intensifying debates about corruption in an administration that was already under significant scrutiny.
Ethereum (ETH) founder, Vitalik Buterin, added fuel to the fire in January when he stated that political coins like the TRUMP memecoin could potentially serve as “vehicles for unlimited political bribery.” This sentiment was echoed by officials at Public Citizen, a nonprofit consumer advocacy organization, in a letter they penned to the U.S. Department of Justice (DOJ) and the Office of Government Ethics in February.
In their letter, Public Citizen officials expressed concerns that the TRUMP memecoin could be in violation of federal laws that regulate gifts to government officials.
This latest development in the TRUMP memecoin saga serves to highlight the volatile and unpredictable nature of cryptocurrencies, particularly those tied to political figures and causes. As the discussion surrounding these so-called ‘political coins’ continues, investors and regulators alike will undoubtedly be keeping a close eye on the trajectory and impact of these controversial assets.
