Nearly 80% of cryptocurrency investors have invested in presidentially endorsed memecoins TRUMP, CAR, and LIBRA, yet two-thirds have incurred losses. This is according to research data from Chainplay.
Experts surveyed 1,066 respondents using the Prolific platform. For calculating profits and losses (PnL), they utilized data from Dune Analytics and Nansen as of February 19.
For 37% of investors, these ‘presidential’ tokens marked their first foray into the digital asset industry. Subsequently, 21% of these newcomers opted out of further market participation.
“Rather than fostering long-term engagement, these memecoins led to significant disappointment. High volatility, rapid Pump & Dump cycles, and a lack of sustainable value deterred many,” the researchers noted.
Launched in January, the “official” memecoin of U.S. President Donald Trump — TRUMP — resulted in losses for 52.4% of investors. The total damage exceeded $3.6 billion.
For nearly 545,000 traders, losses amounted to up to $10,000, while 391 lost over $1 million.
Promoted by Argentine President Javier Milei, the LIBRA token reached a capitalization of $4.56 billion on February 14, only to plummet by 94% within hours. Total investor losses amounted to $292.4 million, with 75% of buyers suffering losses — the worst performance among the three assets.
For 101,153 individuals, losses did not exceed $10,000, while 26 traders lost more than $1 million.
The price of the Central African Republic’s “official memecoin” CAR fell by 96% from a peak of $0.89 within a day of its launch. A promotional video for the token appeared on the X account of Central African Republic President Faustin-Archange Touadéra. The asset’s capitalization momentarily exceeded $1 billion.
About 66% of CAR investors suffered losses. For the majority (61%), losses amounted to up to $1,000. Only 0.07% of buyers earned more than $100,000.
According to Chainplay experts, memecoins associated with political figures have demonstrated the ability to attract new users to digital assets en masse. On the other hand, a significant percentage of newcomers immediately exited the cryptocurrency space, incurring substantial financial losses.
“Whether these tokens will continue to thrive as speculative instruments or lose relevance remains to be seen. For now, they serve as a cautionary tale for investors seeking quick and easy profits in an unstable market,” the researchers concluded.
Earlier, amid major scandals involving memecoins, traders suggested a shift in altcoin interest from Solana to Ethereum. Similar conclusions were reached by JPMorgan specialists.