- A whale sold 763,582 TRUMP tokens for $9.48M USDC, suffering a massive $24.4M loss.
- The trader initially made $11.8M in profits but reinvested $33.9M before TRUMP’s price declined.
- After holding for a month, the whale capitulated, losing both gains and $12.6M in capital.
The crypto market has witnessed another dramatic exit as a whale offloaded 763,582 TRUMP tokens for $9.48 million in USDC. The transaction took place a few hours ago according to Lookonchain data, marking the end of a month-long struggle for the trader. Initially, the whale gained a profit of $11.8 million from TRUMP. Encouraged by this success, they reinvested $33.9 million. However, TRUMP’s price declined continuously after the purchase. Although the trader held on, it eventually capitulated, losing both profits and $12.6 million in capital.
Meme coins like TRUMP continue to be volatile. Many traders have suffered heavy losses chasing hype-driven tokens. The cycle of excitement and collapse has become common in the crypto market. This incident is not isolated. It mirrors a recent event linked to former Binance CEO CZ’s dog, Broccoli. A tweet from CZ triggered a surge in meme coins named after his pet. Traders rushed to create and invest in Broccoli-themed tokens, pushing their market caps into the billions within minutes.
One early investor, identified by wallet address 0x392eb, created a Broccoli token and minted 110 million tokens. In 20 minutes, they sold everything and secured $6.5 million in profit. Meanwhile, thousands of latecomers faced devastating losses as liquidity drained. The market cap collapsed, leaving many investors holding worthless tokens. Another whale invested $2.54 million into two different Broccoli meme coins. One investment gained 24.7%, while the other tanked by 68.1%, resulting in a $302,400 loss.
Related: TRUMP Token Trader Earns $6.95M Profit with Smart Timing
The rise and fall of meme coins remain a pattern in the industry. Reports indicate that most influencer-driven tokens have lost 78% of their peak values. TRUMP, MELANIA, and JAILSTOOL were once highly popular but now face a significant decline. The U.S. Securities and Exchange Commission (SEC) has begun monitoring celebrity-driven cryptocurrencies. They have already taken action against figures like Floyd Mayweather and DJ Khaled for promoting unregistered Initial Coin Offerings (ICOs).
SEC Commissioner Hester Peirce has acknowledged the challenges in regulating these tokens. She emphasized the need for clearer guidelines to prevent unchecked speculation. Past incidents, like the EthereumMax scandal involving Kim Kardashian and Logan Paul’s failed CryptoZoo project, reflect the same pattern.
A hype-driven surge brings retail investors in, only for the market to collapse, leaving most with losses. The crypto market remains unpredictable, with meme coins presenting both massive gains and severe losses. Traders continue to chase trends, but history suggests that only a few emerge successful.
