Fact Check: Trump didn’t make any money on meme coin he released right before being sworn in as president

The Claim: "Trump didn’t make any money on meme coin he released right before being sworn in as president"

Introduction

The claim in question asserts that Donald Trump did not profit from a meme coin he launched shortly before his inauguration as president. This claim arises in the context of the cryptocurrency market, specifically regarding the $TRUMP token, which has been the subject of significant media attention and speculation about its financial implications for Trump and its impact on investors.

What We Know

1. Launch and Initial Performance: The $TRUMP meme coin was launched on January 17, 2025, just days before Trump's inauguration. Reports indicate that the coin experienced a rapid increase in value, reportedly reaching a market capitalization of over $14.5 billion shortly after its launch 16.

2. Ownership and Distribution: According to sources, of the one billion coins created, 800 million are held by two companies owned by Trump, while 200 million were made available to the public during the initial coin offering 2. This distribution raises questions about Trump's potential financial gain from the coin's performance.

3. Financial Impact on Investors: While some early investors reportedly made significant profits, it has been noted that over 810,000 wallets collectively lost around $2 billion as the coin's value fluctuated dramatically 5. This suggests a disparity in outcomes for different investors.

4. Trump's Financial Gains: Various reports claim that Trump or Trump-affiliated entities have made substantial profits from the meme coin. For instance, one report states that he could have gained as much as $50 billion from the coin's initial surge 7. However, this figure is contested by other sources that suggest the actual financial benefits may not be as high or may not have been realized yet 8.

5. Market Volatility: The $TRUMP coin has been characterized by extreme volatility, with reports indicating that its value has dropped significantly since its peak, raising concerns about its long-term viability 10.

Analysis

The reliability of the sources discussing Trump's financial involvement with the $TRUMP meme coin varies:

• Mainstream Media Reports: Outlets like Reuters and NPR provide detailed accounts of the coin's launch and its initial performance. However, these reports often rely on data from cryptocurrency exchanges and market analyses, which can be subject to rapid changes and may not always be independently verified 13.

• Financial Claims: Sources like Rolling Stone and CCN assert that Trump made significant profits from the coin, but these claims often lack detailed financial disclosures or evidence to substantiate the figures presented 57. The potential for bias exists, as these outlets may have editorial slants that influence their reporting.

• Wikipedia and Educational Sources: The Wikipedia entry on $TRUMP provides a neutral overview but may not always reflect the most current information or nuanced financial analysis 2. Educational resources like Binance Academy offer foundational knowledge but may not delve into the specifics of Trump's financial outcomes.

• Conflicting Information: The varying reports on Trump's financial gains highlight the need for caution. While some sources suggest he has profited immensely, others imply that the financial realities may be more complex or less favorable than reported 48.

• Methodological Concerns: The methodologies used to assess the financial impact of the meme coin on Trump and investors are not always transparent. For instance, estimates of Trump's wealth increase from the coin are often based on speculative market valuations rather than concrete financial transactions.

What Additional Information Would Be Helpful

To better understand the claim regarding Trump's financial involvement with the meme coin, the following information would be beneficial:

• Detailed financial disclosures from Trump or his affiliated companies regarding the $TRUMP coin.
• Independent audits or analyses of the coin's market performance and its impact on investors.
• Clarification on the ownership structure of the $TRUMP coin and any potential conflicts of interest in reporting on its performance.

Conclusion

Verdict: False

The claim that Donald Trump did not profit from the $TRUMP meme coin is assessed as false based on the evidence reviewed. Key points leading to this conclusion include the substantial ownership Trump holds in the coin, with 800 million of the total one billion coins reportedly owned by his companies, which suggests a significant potential for financial gain. Additionally, various reports indicate that Trump or his affiliated entities could have profited immensely, with estimates suggesting gains as high as $50 billion, although these figures are contested and may not reflect realized profits.

It is important to note that the financial landscape surrounding cryptocurrencies is highly volatile and speculative. While some investors have faced significant losses, the overall financial implications for Trump remain complex and not fully transparent. The lack of detailed financial disclosures and the reliance on speculative market valuations introduce limitations in the available evidence, making it difficult to ascertain the exact financial outcomes.

Readers are encouraged to critically evaluate information and consider the nuances involved in financial claims, particularly in the rapidly changing cryptocurrency market.

Sources

1. Reuters. "Trump's meme coin made nearly $100 million in trading fees; small traders lost money." Link
2. Wikipedia. "$Trump." Link
3. NPR. "What to know about Trump cryptocurrency meme coins." Link
4. Newsweek. "Trump and Melania Crypto Coins: What Happened After the Election." Link
5. Rolling Stone. "Trump Earned Millions From Meme Coin, 810,000 Others Lost: Report." Link
6. Binance Academy. "What Is the Official Trump Meme Coin (TRUMP)?" Link
7. CCN. "Donald Trump's Memecoin Takes the World by Storm, Adds $50B to His Wealth." Link
8. Substack. "The Meme Coin Is Just the Beginning." Link
9. Forbes. "$TRUMP: What You Need To Know About Meme Coins And The Trump Token." Link
10. CCN. "How Long Will the TRUMP Meme Coin Decline Continue?" Link