Crypto memecoin traders lose $3.94 billion on TRUMP and LIBRA tokens

• Crypto traders who bought President-endorsed memecoins TRUMP and LIBRA lost $3.94 billion.
• 75% of LIBRA token investors are currently sitting on unrealized losses, making it one of the worst-performing memecoins.
• Memecoins, including Solana-based and political-themed tokens, and memes on the Base blockchain, extended losses on Wednesday.

Meme tokens noted a spike in demand among market participants throughout the bull market of 2024 and early 2025. The recent developments highlighting the controversy surrounding Solana-based memecoins have resulted in nearly $3.94 billion in losses for TRUMP and LIBRA holders. 

A survey by ChainPlay and Storible with data analyses from Dune Analytics identified statistics that highlight the state of memecoin investors and their current position. 

TRUMP and LIBRA investors lose $3.94 billion combined

Storible and ChainPlay collaborated on a survey to identify the impact of meme tokens like LIBRA, promoted by Argentine President Javier Milei, and political memecoins like TRUMP. Key findings from the survey are as follows:

80% of the crypto traders surveyed bought President-endorsed meme tokens. 

• $3.94 billion was lost by TRUMP and LIBRA holders combined. 
• 75% of LIBRA investors are sitting on unrealized losses, making it one of the worst-performing memecoin among TRUMP and CAR, all of which are President-endorsed tokens. 
• 21% of the first-time crypto buyers who participated in the survey quit the asset class following their memecoin investment. 

Typically, political memecoins drive higher participation and trade volume from traders, as noted during the November 2024 US presidential election. Losses in the meme coin sector are evident from the declining market capitalization of the category. 

The market capitalization of the meme category of tokens is $74.31 billion, and the Solana meme category is $10.23 billion, according to CoinGecko data, as of Wednesday. 

With 75% of the surveyed LIBRA holders sitting on unrealized losses, it is evident that a majority of traders holding political memecoins in their portfolios are currently underwater. This shows that there is a likelihood of capitulation where traders shed their holdings at losses to exit their positions for fear of a steeper correction in the token. 

Blue-chip memecoins like Dogecoin (DOGE), Shiba Inu (SHIB) and Pepe (PEPE) have started recovering in the past 24 hours after a weeklong decline of 4 to 8%.