Everything Investors Should Know About the $TRUMP Meme Coin

The first thing investors should know about the Official Trump (CRYPTO: TRUMP) coin is that it isn't an investment. Even its website says so. The site says the token is a way to express support for the ideals embodied by its $TRUMP symbol, but is not intended as an investment of any type. That makes it a true meme coin.

The second thing people should know is that many buyers have lost money, at least on paper. Chainalysis data shows that about 40% of the wallets that bought $TRUMP are down on their investments, according to CNBC. In contrast, the people behind the project have made more than $324 million in trading fees. Plus, 58 wallets have seen gains of more than $10 million.

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The token is the best-known incarnation of a new type of crypto: PolitiFi. In this article, I'll look at what PolitFi is, who's behind $TRUMP, and whether anyone should buy it.

Image source: Getty Images.

$TRUMP meme coin 101

The Official Trump coin was built on the Solana (CRYPTO: SOL) blockchain and launched just a few days before the presidential inauguration in 2025. It initially soared to a high of $73.43, according to CoinGecko data. At the time of writing (June 16), it is trading at just over $10, down about 85% from its high.

An initial 200 million tokens were released, with the remaining 800 million creator-controlled tokens vested during three years. The first release of vested tokens was due in April, but the group delayed it by 90 days. This structure is designed to stop creators from selling tokens early in a project. Even so, a limited number of people still control a large proportion of tokens.

Who developed (and profits from) $TRUMP?

It's surprisingly hard to know who runs the Official Trump coin. According to its website, 80% of $TRUMP is owned by Fight Fight Fight LLC and CIC Digital, an affiliate of the Trump Organization.

The Trump Organization is led by the president's sons, Eric Trump and Donald Trump Jr. However, Donald Trump Jr. told CNBC that he was not involved in the creation of the coin. ​​

Fight Fight Fight LLC was listed by William Zanker in Delaware. Bloomberg reports that Zanker has several Trump-adjacent businesses. In May, the Permanent Subcommittee on Investigations wrote to Zanker asking for clarity on the ownership and management structure of the organization, among other things.

Most recently, Eric Trump said World Liberty Financial -- a Trump family decentralized finance venture -- would "acquire a substantial position in $TRUMP for their Long-Term Treasury."

There are certainly strong connections between people, companies, and organizations close to the Trump family and the coin.

What is PolitFi?

Politics meet crypto in what's being dubbed PolitFi. It's a bit soon to give this trend a name, since we've only really seen $TRUMP, $MELANIA (called Official Melania Meme), and LIBRA (CRYPTO: LIBRA) in Argentina. LIBRA, endorsed by Argentina President Javier Milei on social media, turned into a scandal. The coin creators made millions of dollars by selling shortly after Milei's post, while retail investors lost their cash.

Whether they are endorsed by politicians or celebrities, meme coins carry a high risk of fraud. They are cheap to create and aren't intended as investments. Plus, the Securities and Exchange Commission (SEC) has washed its hands of meme coins, stating that they are not securities.

There are also ethical questions about oversight. PolitFi lets individuals circumvent existing political fundraising regulations, particularly those around foreign interference.

Should I buy $TRUMP?

One reason people might buy $TRUMP is as a type of fan token -- similar to those of the Manchester City and FC Barcelona football teams. You may feel it's a way of being part of the Trump community.

Politics aside, you might speculate that its price may rise, particularly if the president mentions it again on social media. However, this can be risky. It is difficult to buy or sell at the right point in time, and there are no guarantees that the price will go up. As the LIBRA scandal in Argentina showed, it's the insiders who are in the best position to profit from meme coin speculation.

Ultimately, if you're considering buying $TRUMP as an investment, there are a lot of assets with better prospects. You might consider Bitcoin (CRYPTO: BTC), which has more of a track record than any other crypto and is gaining traction as a hedge against market turmoil.

Or, if you want a way to get exposure to meme coins without buying the tokens themselves, consider Solana. The platform has become a popular choice for meme coin creators, which is good for Solana holders.

Ultimately, the Official Trump coin does not make sense as a long-term investment. In addition to its less-than-transparent leadership structure, its tokenomics are a major red flag. When insiders control 80% of any token, it is too easy for them to manipulate the price -- even with a three-year vesting period.

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Emma Newbery has positions in Solana. The Motley Fool has positions in and recommends Bitcoin and Solana. The Motley Fool has a disclosure policy.