Official Trump $TRUMP, the meme coin founded by US President Donald Trump, is at the center of Controversy. At the time of writing, the token was down 8% and 33% in the past day and week, respectively.

According to an exclusive report by Reuters, Trump’s foray into cryptocurrency has proven lucrative for the entities behind his meme coin, $Trump. Within just two weeks, the coin has amassed nearly $100 million in trading fees.

However, while major investors saw massive gains, thousands of small traders reportedly ended up on the losing end. The situation caused concerns over celebrity-backed crypto projects and their impact on the broader market.

A Rapid Rise and Fall

Launched on January 17, the $Trump token initially surged more than $14 billion in market valuation as of January 19, just before Trump’s inauguration. However, the rally did not last longer, and the coin has since lost two-thirds of its value. Despite the downturn, the trading activity has been intense, generating millions in fees.

Data from CoinMarketCap shows that in the past 24 hours, $TRUMP posted more than $2 billion in trading volumes. In the intraday trading, the memecoin dropped as low as $17, a sharp contrast to its all-time high of $74 at its debut.

According to blockchain analysis firms Merkle Science and Chainalysis, the trading fees from $Trump transactions reached between $86 million and $100 million by January 30. The primary beneficiaries? The entities behind the coin, including CIC Digital, a company owned by Trump.

The blockchain data shows that at least fifty of the largest $Trump holders walked away with over $10 million each. However, Chainalysis reported that approximately 200,000 crypto wallets, mainly belonging to small-scale traders, suffered losses on the exchange where $Trump was first sold.

Criticism and Controversy

Despite its financial success for some, the $Trump coin has been widely criticized. Industry figures argue that Trump’s apparent lack of involvement or understanding of the coin’s mechanics raises concerns.

Critics argue that Trump’s involvement in a meme coin undermines his previous promises to boost the crypto industry through regulatory clarity. Trump has previously expressed interest in cryptocurrency, notably making millions from NFT sales in 2022.

Meanwhile, the crypto world continues to watch $Trump closely. Some believe it sets a dangerous precedent for political figures leveraging their influence for financial gain, while others see it as a natural evolution of digital assets.