Whale Who Netted $108,000,000 Profit on TRUMP Books Loss on the Memecoin After President’s Truth Social Post
A high-profile investor, known as a whale in the cryptocurrency world, experienced a rollercoaster ride with the Official Trump (TRUMP) memecoin recently. According to Lookonchain, a crypto tracker, the whale initially made a significant profit on TRUMP but later incurred a substantial loss.
The whale reportedly invested $5 million in Circle’s stablecoin, USDC, to purchase TRUMP shortly after former President Donald Trump endorsed the coin on his social media platform, Truth Social. However, the investor quickly sold off the TRUMP holdings, resulting in a $207,000 loss.
Despite this setback, the whale had previously made a massive profit earlier in the year. By investing 1.09 million USDC, the investor acquired 5.97 million TRUMP tokens and ultimately earned a staggering $108 million profit from the trade, as per Lookonchain data.
The launch of the Official Trump memecoin in January, just before Trump’s return to social media, sparked controversy within the cryptocurrency community. Some critics raised concerns about potential corruption and ethical issues surrounding the coin, with Ethereum founder Vitalik Buterin even labeling political coins as “vehicles for unlimited political bribery.”
In February, Public Citizen, a consumer advocacy organization, raised alarms about potential legal violations related to TRUMP. They sent a letter to the U.S. Department of Justice and the Office of Government Ethics, suggesting that the coin could breach federal laws regulating gifts to government officials.
The saga of the whale’s investment in TRUMP highlights the volatile nature of meme coins and the risks associated with speculative trading in the cryptocurrency market. As the crypto landscape continues to evolve, investors are advised to exercise caution and conduct thorough research before diving into such ventures.
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(Image credit: Midjourney)
