Foreign media report that controversy surrounding Trump-linked crypto projects is heating up again. According to data cited by The Wall Street Journal, approximately two-thirds of wallets that purchased the Official Trump (TRUMP) memecoin are currently in unrealized loss; about 85% of secondary market buyers of the World Liberty Financial (WLFI) token are also underwater.
Approximately 1.48 million wallets are underwater.
The report noted that approximately 1.48 million wallets experienced unrealized losses related to the TRUMP token. Investor Ross Gerber criticized Trump's crypto venture, stating that numerous retail investors suffered losses while those involved in the project reaped substantial profits.
However, the number of wallets does not equate to the number of actual investors. A single user may control multiple wallets, and some wallets may correspond to platform or custodial accounts; therefore, this data is better suited to reflect holding distributions rather than precise counts of individual losses.
The TRUMP token has dropped significantly from its high.
After its launch in January 2025, the TRUMP token attracted significant retail investment, with its market cap briefly nearing $15 billion. Since then, the price has steadily declined, with reports indicating a drop of approximately 97% from its peak, reducing the market cap to around $404 million.
This sharp volatility has reignited market discussions about political figures' associated tokens. Critics argue that tokens with strong personal branding are more likely to attract capital in the short term, but when prices retrace, secondary market buyers often bear the greatest losses.
U.S. politicians raise conflict of interest concerns again
The article also mentions that U.S. Senator Elizabeth Warren is advocating for stricter cryptocurrency regulation, with one key focus being on restricting sitting elected officials and their families from directly profiting from digital asset projects. She believes such arrangements pose a clear risk of conflicts of interest.
Foreign media believe that the focus of this controversy has expanded beyond the price fluctuations of a single token to include whether political figures should participate in crypto projects while in office, and whether existing regulations can adequately cover related interest arrangements. As U.S. election politics continue to intersect with the crypto industry, similar projects may face increased scrutiny.