Study: Political Memecoins Often Leave Investors Disillusioned
Estimated Reading Time: 3 minutes
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
A recent survey revealed that politically themed memecoins like TRUMP, LIBRA, and CAR attracted a large number of first-time crypto investors but ultimately led to significant losses and widespread disillusionment.
Memecoin Losses Push 21% of New Crypto Investors to Exit
A study conducted by Chainplay in collaboration with Storible, which surveyed 1,066 crypto investors, found that nearly 80% had invested in politically endorsed memecoins such as CAR, LIBRA, and TRUMP. The study indicated that around 37% of these investors were first-time buyers, drawn in by the political relevance and viral marketing surrounding these tokens. However, approximately 21% of them reportedly abandoned the crypto market entirely after experiencing losses with these assets.
The report noted that instead of encouraging long-term participation in the cryptocurrency market, these memecoins had contributed to growing investor disillusionment. It explained that high volatility, frequent pump-and-dump cycles, and a lack of sustainable value had likely discouraged many newcomers from continuing their involvement in crypto.
Despite the initial excitement surrounding their launches, the study highlighted that the value of these politically endorsed memecoins had sharply declined. As a result, two-thirds of investors in these tokens were reported to be facing financial losses.
Study Highlights Heavy Losses Among Political Memecoin Investors
According to the study data, as of February 19, nearly 560,000 TRUMP investors—representing 52.3% of holders—were at a loss. Among them, nearly 545,000 had lost up to $10,000, while 287 investors had suffered losses exceeding $1 million. The total financial loss among TRUMP investors was reported to be approximately $3.6 billion.
The findings also indicated that three-quarters of LIBRA investors were experiencing losses, with over 101,000 individuals having lost up to $10,000. While 26 LIBRA investors had lost over $1 million, the data revealed that about 36 had managed to generate profits exceeding $1 million.
For CAR investors, the study reported that 66% were in a losing position, while only 0.07% had earned more than $100,000.
The report concluded that political memecoins have demonstrated the ability to attract large-scale investor participation. However, it emphasized that these assets also expose investors to the speculative and high-risk nature of the market, which has driven a significant number of first-time buyers away from crypto altogether. The study further warned that widespread negative experiences could hinder broader adoption and erode trust in digital assets.
