A cryptocurrency trader who had amassed over $11 million in profits with TRUMP memecoin has given it all back, accumulating more than $21 million in losses amid the tariffs crash.
This weekend, Donald Trump started a trade war by implementing tariffs against China, Canada, and Mexico, crashing all markets worldwide. While Canada and Mexico tariffs are currently on hold, China has retaliated, imposing their own tariffs against the United States.
Under the macroeconomic uncertainty, most cryptocurrencies struggle at low prices, leaving many traders underwater, with massive realized and unrealized losses. Interestingly, TRUMP coin is one of the most affected in all this mess, punishing Donald Trump’s fans who bought it.
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TRUMP whale trader loses $21M after profiting $11M
In particular, a crypto whale trader went from heaven to hell while trading TRUMP, the memecoin created by Donald Trump.
On January 18, this trader sold all his 860,895 TRUMP for $23.8 million, after buying for $12 million. Lookonchain reported the over $11 million profit at that time, seeing the memecoin going from $13.94 to $27.67.
However, as it happens with most memecoin traders, the whale sized up his bet and made another TRUMP purchase. 15 days ago, he spent $33.9 million to buy 766,083 TRUMP at $44.25 before the tariffs crash.
According to Lookonchain’s post, the 766,083 TRUMP holdings are now worth $12.85 million at $16.84 per token. This results in $21 million of unrealized losses, which ended up erasing all the trader’s previous gains.
Donald Trump’s crypto activity
Notably, the outcomes fruit of Donald Trump’s trade war have made analysts wonder if the US President was “the worst insider trader ever,” as Finbold reported. This is because Trump’s team have been signaling a bullish bias toward crypto, especially by buying a lot of cryptocurrencies.
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On the other hand, traders like hoeem, on X, these movements are part of a smart trading plan. As described, the President launched TRUMP, absorbing the liquidity of all altcoins, while World Liberty Fi bought Ethereum (ETH).
The plan continued after releasing MELANIA’s memecoin, followed by the tariffs crash, all allowing “world liberty fi to buy cheap ETH,” in his words.
Then, Donald Trump has put Canada and Mexico tariffs on stand by, which the market reacted positively to. After that, his team announced a press conference on February 4 to talk about the U.S. crypto strategic reserve, followed by bullish posts on ETH from Eric Trump, the President’s son.
If the market now reacts positively for the upcoming events, this plan will prove itself extremely profitable for insider traders. Nevertheless, unaware investors, like the TRUMP whale trader, will either lose millions of dollars or need to hold with conviction amid the uncertainty to avoid realizing the losses.
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