Millions are lost by traders as the memecoin decline intensifies.

The recent memecoin frenzy sparked by US President Donald Trump's entry into the market may have made some traders quite wealthy, but others have not been as lucky as others as memecoin prices have started to decline.

Blockchain analytics company Lookonchain reported on January 24 that a trader lost nearly all of the more than $1 million in Solana SOLUSD tokens that they had taken out of exchanges to trade memecoins. The trader lost almost $900,000 after investing in 13 distinct memecoins.

Only one of the trader's thirteen investments—$231—turned a profit. The trader lost over $200,000 on Vinecoin (VINE), the official memecoin introduced by Rus Yusupov, co-founder of the now-defunct American short-form video hosting service, and over $400,000 on Alon (ALON).

Trump memecoins cause traders to lose money.

President Donald Trump officially started the memecoin project on January 18. The debut of the token caused a trading frenzy, and a few hours later, the memecoin's market capitalisation was close to $9 billion. Melania Trump, the first lady, also introduced a meme token with the same name, which did well when it was released.

Others might not have been as fortunate, but some people made millions on TRUMP. The TRUMP token was down 53% from its peak on January 19 to roughly $34 at the time of writing. The MELANIA cryptocurrency, meanwhile, was trading at under $2, over 80% lower than its peak of $13 on January 20.

Traders who made huge purchases watched their money fall as the TRUMP token declined. A wallet connected to cryptocurrency influencer Ansem lost more than $2.5 million on the TRUMP token on January 21, according to a Lookonchain report. The wallet bought TRUMP tokens at $48 using 9.3 million USD Coin (USDC). The trader ended up with $6.8 million after selling the tokens for $35.

It appears that many others have also lost money. One X user stated that a trader lost $400,000 on MELANIA, while another alleged that a trader lost $20 million on the TRUMP coin.

Trump memecoins draw complaints and demands for an investigation.

Some expressed concern over the TRUMP memecoins' possible detrimental effects on investors, while others said that they would mark a change in the acceptability of cryptocurrencies. Fraud investigator coffeezilla said most investors losing money on the tokens were not crypto natives.

Virginia Democrat Gerald Connolly urged the US House Committee on Oversight and Government Reform to look into whether Trump's cryptocurrency endeavours were in contradiction with his official responsibilities on January 21.

Senator Elizabeth Warren requested on January 22 that the ethics office and US financial authorities look into the moral and legal issues surrounding the president and first lady's cryptocurrency holdings.

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