Investors Flock to "Presidential Memecoins" but Suffer Losses
Date: 2025-02-24 Author: Henry Casey Categories: CRYPTO PAYMENTS
Chainplay analysts, using data from Dune Analytics and Nansen, surveyed investors on the Prolific platform. According to their data, 80% of respondents invested in memecoins associated with famous political figures. For 37% of participants, such tokens were the first step into the cryptocurrency world, but 21% of newcomers completely abandoned further trading after their first losses.
One of the most discussed assets was the TRUMP memecoin, issued in January by former US President Donald Trump. Despite significant interest, it brought losses to 52.4% of investors, and the total loss exceeded $3.6 billion.
Another unsuccessful investment was the Central African Republic's CAR memecoin. Launched with the advertising support of President Faustin-Archange Touadera, it fell by 96% from its maximum of $0.89 within 24 hours of its release. As a result, 66% of investors lost their invested funds.
A similar scenario unfolded with the LIBRA token, which was actively promoted by the President of Argentina Javier Miley. On February 14, its capitalization reached $4.56 billion, but in just a few hours, the token depreciated by 94%. In total, investors lost $292.4 million, and 75% of holders recorded losses, which was the worst indicator among all the assets considered.
According to Chainplay analysts, memecoins associated with politicians are capable of attracting a lot of new participants to the market, but are accompanied by a high level of risk. Experts believe that such assets serve as a warning for investors seeking quick profits.
Earlier, a study by crypto exchange Kraken showed that 85% of US digital asset owners are investing in memecoins, with 76% of them convinced that the potential rewards justify the risks.
