A distinguished cryptocurrency whale suffered a $207,000 loss from buying and selling the Official Trump (TRUMP) meme coin inside an hour on March twenty third.
Apparently, this whale had beforehand turned an funding of 1.09 million USDC into practically $108 million by buying 5.97 million TRUMP tokens at an earlier stage.
$207K Gone in an Hour
Based on blockchain analytics agency Lookonchain’s newest update, the dealer spent 5 million USDC stablecoin to purchase TRUMP instantly after US President Donald Trump publicly endorsed the token on TruthSocial. The post learn,
“I LOVE $TRUMP — SO COOL!!! The Biggest of all of them!!!!!!!!!!!!!!!!”
This tweet triggered a surge within the token’s worth above $12.25 on Sunday. Nevertheless, excessive volatility adopted, resulting in the dealer promoting off the holdings an hour later at a loss. Trump’s endorsement of the Solana-based meme coin spiked buying and selling volumes to their highest ranges in weeks.
Forward of Inauguration Day on January 20, each President Trump and Melania Trump launched official meme cash. TRUMP noticed a fast rise above $70 days later however now trades at round $11.92 after a large crash. In the meantime, MELANIA peaked close to $13 earlier than falling to roughly $0.69 inside a interval of two months.
The launch initially sparked political controversy. The criticism additionally stemmed from claims that the meme coin capitalized on Trump’s title with out offering any real worth to the cryptocurrency trade.
Subsequently, Rep. Sam Liccardo introduced the MEME Act which seeks to dam senior authorities officers and their households from selling or issuing cryptocurrencies like meme cash. The invoice additionally mandates President Trump to return any earnings earned from his household’s meme coin ventures.
Meme Cash and Regulation
Based on the Securities and Alternate Fee (SEC), meme cash just like the TRUMP token aren’t thought-about securities and, due to this fact, aren’t topic to the SEC’s regulation. The company explained final month that meme cash are digital belongings pushed by on-line traits or memes and purpose to draw on-line communities.
As these belongings deal with fan engagement reasonably than funding returns, the federal securities regulator views them as collectibles, and never monetary securities, thereby putting them outdoors the standard regulatory framework for securities.
The SEC’s assertion aligned with comments made by Commissioner Hester Peirce, who leads the company’s Crypto Job Pressure, established in January to reshape crypto rules. Peirce talked about in an interview that many meme cash fall outdoors the SEC’s regulatory attain.
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