The headline-grabbing moment came when Warren Investigates Trump Meme Coin Crash became the latest political-crypto crossover story, following the sudden collapse of TRUMP and MELANIA tokens.
The TRUMP memecoin, which surged to $73 before crashing 57% to $32, has drawn scrutiny after reports linked its rise to a $58 billion boost in the Trump family’s crypto-linked wealth. Melania Trump’s token also nosedived, dropping from $13 to just $2.60. The crash has raised fresh concerns about transparency, manipulation, and political influence in digital assets.
Senator Elizabeth Warren is now calling for a formal inquiry, highlighting that two wallets control nearly 80% of TRUMP’s supply. “When a handful of actors dominate a market tied to political figures, it raises red flags for both investors and democracy,” Warren said in a statement.
Even more controversial is the fine print baked into the TRUMP coin’s terms of service, which blocks investors from filing class-action lawsuits. Legal experts say this clause could complicate any attempts at restitution for retail traders who suffer losses.
The memecoin’s sudden rise and fall reflects broader risks in speculative crypto markets. According to Bloomberg, regulators are monitoring similar tokens for signs of concentrated ownership and market manipulation. If investors begin reporting widespread losses, the Securities and Exchange Commission could escalate its oversight.
“This isn’t just about one meme coin,” said Alex Carter, a blockchain policy researcher. “It’s about whether celebrity-backed digital assets can exist without robust guardrails to protect investors.”
The investigation could mark a turning point for the regulation of politically branded cryptocurrencies. If Warren’s probe gains traction, exchanges listing TRUMP and similar tokens may face pressure to tighten compliance or delist them entirely.
For now, the TRUMP coin saga serves as a cautionary tale: meme coins tied to political figures may offer quick gains, but their structural risks—and regulatory exposure—are growing harder to ignore.
