Some traders have recorded large losses in the recent memecoin frenzy initiated by U.S. President Donald Trump.

On January 24, blockchain analytics firm Lookonchain highlighted how a trader had withdrawn over $1 million in Solana (SOL) tokens from exchanges to trade memecoins, only to lose nearly all of that money. This trader had invested in 13 different memecoins, losing around $900,000.

Out of the trader's 13 investments, only one yielded a profit of $231. The trader lost over $400,000 on Alon (ALON) and more than $200,000 on Vinecoin (VINE).

Traders lose money on Trump's memecoins

On January 18, President Donald Trump launched an official memecoin project. The token launch sparked a trading frenzy, pushing the memecoin to a market capitalization of nearly $9 billion just hours after launch. First Lady Melania Trump also launched a token, which performed well after launch.

While some made millions of dollars from TRUMP, others may not have been as fortunate. At the time of writing, the TRUMP token is trading around $34, down about 53% from its peak on January 19. Meanwhile, the MELANIA token is around $2, down nearly 80% from its ATH of $13 on January 20.

As the TRUMP token declined, traders who bought in at high prices suffered significant losses. On January 21, Lookonchain reported that a wallet associated with crypto influencer Ansem had lost over $2.5 million on TRUMP tokens. The wallet had spent $9.3 million to buy TRUMP tokens at $48 each. The trader then sold the tokens for $35, receiving only $6.8 million.

Many others seem to have lost money as well. A X user claimed that a trader had lost $20 million on TRUMP tokens, while another said a trader had lost $400,000 on MELANIA.

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