2025 Memecoin Mayhem: $1M Solana Investment Wiped Out by Memecoin Trades
Following US President Donald Trump’s debut into the memecoin market, some traders were fortunate enough to strike gold and create generational fortune, but others were not as fortunate as prices declined. Blockchain analytics company Lookonchain said on January 24 that a trader lost nearly all of the more than $1 million in Solana tokens that they had taken out of exchanges to trade meme coins. The trader lost almost $900,000 after investing in 13 distinct meme coins.
Only one of the trader’s thirteen investments—$231—turned a profit. The trader lost over $200,000 on Vinecoin (VINE), the official memecoin introduced by Rus Yusupov, co-founder of the now-defunct American short-form video hosting service, and over $400,000 on Alon (ALON).
TRUMP and MELANIA Meme Coins Plunge: Over 50% Decline from Peak Prices
Trump officially introduced the memecoin project on January 18. The token introduction caused a trading frenzy, and a few hours later, the memecoin’s market capitalization was close to $9 billion. In addition, First Lady Melania Trump introduced a meme token with her own name, which did well after its debut.
Some people made millions on TRUMP. However, the TRUMP coin was trading at about $34 at the time of writing, which is roughly 53% down from its peak price on January 19. In the meantime, the MELANIA coin is trading at around $2, over 80% down from its peak of $13 on January 20.
Meme Coin Meltdown: TRUMP and MELANIA Tokens Cause $20M in Investor Losses
Traders who made huge purchases watched their money fall as the TRUMP token declined. A wallet connected to cryptocurrency influencer Ansem lost more than $2.5 million on the TRUMP token on January 21, according to a Lookonchain report. It appears that many others have also lost money. One X user stated that a trader lost $400,000 on MELANIA, while another alleged that a trader lost $20 million on the TRUMP coin.
Some expressed concern over the TRUMP meme coins’ possible detrimental effects on investors, while others said that they would mark a change in the acceptability of cryptocurrencies. Virginia Democrat Gerald Connolly urged the US House Committee on Oversight and Government Reform to look into whether Trump’s cryptocurrency endeavors were in conflict with his official responsibilities on January 21. The ethics office and US financial regulators were urged by Senator Elizabeth Warren on January 22 to look into the moral and legal issues surrounding the president and first lady’s cryptocurrency holdings.
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