By Hannah Lang, Elizabeth Howcroft, and Michelle Conlin

In early January 2025, just three days before President Donald Trump’s second inauguration, the release of the $TRUMP coin, a so-called “meme coin” styled after the president, triggered a whirlwind of listing activity across the world’s major cryptocurrency exchanges. Within just two days of its official launch, eight out of the ten largest exchanges listed $TRUMP, with Coinbase — the largest U.S. exchange — joining shortly after. This rapid pace marked a stark departure from the industry’s typical deliberative vetting procedures for new coins, especially those lacking clear utility or high liquidity protection for users.

An Unmatched Rush for Listing

Typically, exchanges like Coinbase and Binance spend months vetting new tokens, examining everything from the background of key project members to the potential for market manipulation. A Reuters analysis found that for other top meme coins launched since 2022, such as Pepe, Bonk, Fartcoin, and Dogwifhat, the median listing time was 129 days. For $TRUMP, exchanges moved over 30 times faster — taking a mere four days on average.

The impetus? According to the exchanges, overwhelming customer demand and the coin’s association with a sitting U.S. president. Gracy Chen, CEO of Bitget, stated, “The crypto space was buzzing with hype and, as with any other token with a growing craze, it was imperative to add TRUMP.” Coinbase, too, flagged the coin as “experimental” in recognition of its volatility and risk but maintained that its listing process, though rapid, did not skip any risk controls.

Meme Coin Mechanics and Market Impact

Meme coins draw their value largely from community hype, virality, and pop culture resonance rather than any tangible utility. The $TRUMP coin, announced on Trump’s own social media accounts, tapped directly into his political following and the mainstream spotlight. These dynamics saw its price skyrocket to an all-time high of $75.35 just two days after launch before plunging to single digits weeks later. By mid-July, the coin stabilized around $9.55 — still leaving early buyers who entered at the peak nursing huge losses.

“When the president of the United States launches a meme coin, I thought I might as well put some money inside,” said Carl “Moon” Runefelt, a Dubai-based investor and YouTube personality who reportedly lost big betting on $TRUMP.

Meanwhile, the coin’s market cap soared to $15 billion at its peak before plunging to about $1.9 billion by June, still placing it among the largest meme coins globally.

Big Winners, Many Losers

The fast listing granted unprecedented liquidity to early insiders. Data compiled by crypto analytics firm Bubblemaps showed that just 45 crypto wallets controlled some $1.2 billion in profits. In stark contrast, over 712,000 wallets holding $TRUMP collectively lost about $4.3 billion, highlighting how meme coins can concentrate benefit among initial buyers while retail participants bear the losses when prices fall.

Trading fees also soared — $172 million was generated across the ten exchanges in just the first six months, according to estimates by CoinDesk Data.

Red Flags Over Ownership Concentration

One of the most concerning aspects was the highly concentrated ownership at launch: about 80% of $TRUMP coins were controlled by the Trump family and affiliated partners. Conventional exchange vetting flags such concentration as risky, since large holders can dramatically influence market price through sudden sales (“dumping”). Nevertheless, several exchanges justified moving forward to serve unprecedented user demand, sometimes listing $TRUMP in special or “experimental” trading segments to warn users.

Regulators, too, sounded alarms. New York’s Department of Financial Services, even before $TRUMP’s launch, warned consumers about meme coins, pointing to risks of “pump-and-dump” schemes and platforms with little oversight. Coinbase, subject to New York law, barred state residents from trading $TRUMP, though it permitted trading by users in most other U.S. states and globally.

Regulatory Uncertainty and Political Crosscurrents

The $TRUMP coin’s high-profile launch shines a spotlight on regulatory challenges brought by the intersection of politics and crypto. Under President Biden, SEC policy cast most tokens — including meme coins — as securities, and exchanges were cautious about listing. But as Trump campaigned on a platform of crypto deregulation, the temperature in the industry shifted.

Following Trump’s election, the SEC suspended or withdrew several high-profile enforcement actions against major crypto operators, including some linked to Trump family crypto projects. The agency also put out a staff statement that meme coins are not securities — a move interpreted by many as opening the floodgates. However, an SEC spokesperson declined to comment for this story.

Corey Frayer, former SEC crypto advisor, told Reuters: “You don’t say no to hosting the president’s new meme coin. The president controls who oversees your business and how they enforce the law.” Consumer advocacy groups have voiced similar concerns about potential conflicts of interest and regulatory capture.

The White House responded by stating that President Trump’s assets are in a family trust and that he exercises no control over them, dismissing allegations of conflicts as “irresponsible.” The Trump Organization did not respond to requests for comment regarding distribution of the estimated $320 million in fees generated by $TRUMP’s launch.

Changing Landscape for Exchanges

Coinbase and its peers, including OKX, MEXC, Bitget, and Upbit, all asserted that their teams worked overtime to vet $TRUMP’s listing and did not relax their internal compliance procedures. Yet, experts like Dr. Seoyoung Kim of Santa Clara University argue that speed of listing remains a weak proxy for proper due diligence, highlighting the need for multi-dimensional investor protection — from minimum trading history and daily volume thresholds to market cap sustainability.

Nevertheless, the crypto industry in 2025 showed a bias towards growth and capturing headline attention. As of July, most major exchanges continued to feature $TRUMP prominently, citing “customer demand” and changing regulatory winds as justification.

Lessons for Investors

The $TRUMP coin saga is the clearest recent example of how crypto markets — still largely unregulated outside of select jurisdictions — can expose ordinary investors to extreme risk, especially when coins tied to celebrities or political figures are involved. With fortunes made and lost overnight, both prospective buyers and the industry itself are being reminded of the hazards of hype.

As the U.S. and global regulators continue to wrestle with the rapidly evolving crypto ecosystem, the $TRUMP coin episode underscores the urgent need for better investor education, more consistent standards for exchange listings, and careful scrutiny when the worlds of celebrity, politics, and digital assets collide.