A crypto trader who once profited $11 million from the TRUMP meme coin has now suffered a loss of over $21 million due to a market crash triggered by tariffs. The trader’s journey, which began with significant gains, took a sharp downturn amid the ongoing trade war ignited by Donald Trump.
The saga started on January 18 when the trader sold 860,895 TRUMP tokens for $23.8 million, having initially invested $12 million. This resulted in a profit of $11 million as the price of TRUMP surged from $13.94 to $27.67. However, the success was short-lived.
The trader opted to invest further, acquiring 766,083 TRUMP tokens for $33.9 million at $44.25 each. Shortly after this purchase, the global market took a sharp downturn as the U.S. imposed tariffs on China, Canada, and Mexico.
Consequently, the value of TRUMP plummeted, and the trader’s holdings significantly depreciated. Today, the trader’s 766,083 TRUMP tokens are valued at just $12.85 million. This steep decline has resulted in $21 million in unrealized losses, erasing both the earlier profits and a considerable portion of the original investment.
Meanwhile, cryptocurrencies have been grappling with the unpredictable fallout from the trade war. The tariffs imposed by Trump’s administration triggered turmoil in financial markets globally, with cryptocurrencies not spared. The tariffs’ effects were evident, as some tokens, including TRUMP, saw major value losses.
The market’s decline has raised concerns about the broader impact of Trump’s trade policies on the cryptocurrency sector. There’s even speculation that these actions may be part of a larger strategy.
Trump’s administration had been supportive of crypto, with some members of his team expressing interest in acquiring crypto assets such as Ethereum.
Although the U.S. President’s temporary suspension of tariffs against Canada and Mexico briefly lifted market sentiment, for many traders, including the TRUMP whale trader, the damage had already been done.