**Trump Meme Coins: Who Profits and Who Loses?**
The year 2025 has just begun, and we have already witnessed a series of “meme coin chaos.”
First, former President Donald Trump, returning to the White House for a second time, kicked off the trend by launching the official meme coin $TRUMP on the eve of his inauguration. The trading volume exceeded $10 billion within 24 hours. According to CoinMarketcap data, the price peaked at $75 and subsequently plummeted, reaching around $15 by late February. This means that those who bought at the peak incurred losses exceeding 80%.
It’s not just Trump; his wife, Melania Trump, the First Lady of the United States, followed suit a few days after the launch of $TRUMP by issuing her own meme coin, $MELANIA. Based on CoinMarketcap data, the price surged to about $13 but fell to less than $1 by February, with fluctuations reaching as high as 92%.
The chaos surrounding meme coins in the political sphere did not stop there. Newly elected Argentine President Javier Milei tweeted in early February in support of a meme coin called “LIBRA,” claiming it could stimulate the economy. Many retail traders, seeing this post, rushed to buy, causing the price of $LIBRA to skyrocket from $0 to nearly $5. However, just hours later, the price plummeted below $1, leading Milei to delete the post and distance himself from it.
These three “celebrity coins” that sparked excitement at the beginning of 2025 share a commonality: they experienced rapid surges and declines in a very short period. Some people did indeed make money, but more often, individuals exchanged their hopes for heartbreak.
In response to the frenzy of political meme coins, Ethereum founder Vitalik Buterin posted on his personal X account that “political coins” are like candy; while they may provide temporary sweetness, they lack substantial nutritional value and do not aid in wealth accumulation. Furthermore, they are more likely to become a tool for bribery.
In the market, there have always been two roles: “investors” and “traders,” which can further be divided into “professional” and “amateur,” or “whales” and “retail investors.” Meme coins, lacking actual value support, have prices that fluctuate based on community discussions. However, such highly volatile assets present opportunities that many traders want to seize. Yet, in such an intense market, how can one avoid becoming the “cut leeks,” so to speak?
The timing of buying and selling, as well as the reasons for increasing or stopping losses, results from the interplay of various factors, which is referred to as “trading behavior.”
In the “Web3 Great Westward Expansion” podcast, co-produced by WEB3+ and XREX, I discussed with trading researcher Ray the differences in trading behavior between “professional traders” and “retail traders.” Ray, who has experience in traditional financial markets with hedge funds, shared several “mysterious trading behaviors” to be especially cautious of, including: “too late to stop losses,” “too early to take profits,” and “addicted to the thrill of making big profits.”
Since many friends around me are interested in cryptocurrency trading, and with my experience managing the XREX exchange, I offer four key insights from the perspective of a “retail trader.”
**Advice 1: Most virtual assets lack technical analysis value! Human nature and discipline are key.**
Cryptocurrencies have only been around for 16 years and are still in a very early stage of development. According to a report by Crypto.com, there are currently about 30 to 60 million active cryptocurrency users globally, accounting for only 5% to 10% of the total number of holders.
Furthermore, the global cryptocurrency industry has only recently entered a regulatory era, and many projects lack transparency, mixing in human nature and uncertainty. Price fluctuations are often linked to community sentiment and short-term topics, unlike publicly listed companies that regularly release financial reports and hold shareholder meetings to disclose information for investors to make judgments.
In other words, most virtual assets currently lack analytical value. While one might make money by chance, more often than not, invested funds can vanish without a trace.
For example, the celebrity meme coins mentioned at the beginning of this article see price fluctuations that are not related to the actual value of the assets but are influenced by community sentiment and human nature. Such assets are prone to manipulation.
At this moment, being aware of the impact of “human nature” and “sticking to discipline” is a more valuable reference for retail traders.
**Advice 2: Believing in copy trading is never wrong? Staying rational is more important than anything.**
Many newcomers to the market, who are still unfamiliar with the dynamics, choose “copy trading” when they first encounter crypto assets, meaning they replicate the trading actions of a certain trader or institution, hoping to achieve similar success.
As mentioned in the first piece of advice, in a market where there is not much technical analysis available, copy trading is unreasonable. Each individual’s context differs, and without technical analysis to support it, replicating the same success is often difficult. In the market, it’s hard to find anyone who is infallible; it is unlikely that anyone will succeed every time. Very few can survive the tumultuous waves of the market and remain active, and these excellent professional traders are often low-key and humble, rarely showing off or sharing their trades publicly.
Newcomers to the market must start by learning knowledge and accumulating experience, rather than seeking shortcuts. Copying trades carries risks and may disrupt one’s original investment discipline. Remember, “staying rational” is always the highest principle.
**Advice 3: Be careful not to get addicted! Maintaining mental and physical health is crucial for making sound investment judgments.**
For retail traders, nothing is more important than “mental and physical well-being.” Only when one is healthy can they make correct judgments and enjoy the fruits of their investments.
I have seen too many people invest with a “gambling” mentality, leading them to become overly focused on the assets they invest in. They may stay up late, constantly monitoring price changes, glued to their phones during meals, work, or commutes, worrying about asset fluctuations. This lifestyle can lead to mental exhaustion over time.
In a poor mental state, even professional traders struggle to make rational and correct decisions, let alone retail traders. Trading requires high levels of focus and attention. Based on my years of observation, when a person cannot maintain mental and physical balance, disaster is not far away.
**Advice 4: Align with your personality.**
Finally, whether you are a professional trader or a retail trader, it is essential to align your trading with your personality to ensure longevity in the market.
Whether you are a professional trader or a retail trader, in the trading process, “human nature,” “rationality,” “mental and physical health,” and “self-awareness” are always the four most important keywords.