Donald Trump’s supporters have lost more than $12bn (£9.5bn) in a month after the value of the president’s cryptocurrency collapsed.
$Trump, a so-called “meme coin” unveiled on Jan 17, three days before Mr Trump’s inauguration, has lost more than 80pc of its value since its peak on Jan 19.
This has led to its overall worth falling from a peak of $15bn to $2.7bn on Thursday, as it suffered amid a wider crypto rout.
The paper value of the coins owned by Mr Trump himself has also fallen by $50bn.
While Mr Trump’s own losses have not been crystallised, investors are on the hook after spending heavily to back the Trump coin in the run-up to his inauguration, partly as a show of support but also as a gamble that the token would rise in value.
However, interest in the project has since dwindled, accompanied by a wider market crash.
Bitcoin has lost a fifth of its value since hitting an all-time high on the day of Mr Trump’s inauguration.
An official Melania Trump meme coin promoted by the First Lady has fared even worse, dropping 94pc since Jan 20.
Mr Trump has vowed to be the first “crypto president”, recently appointing venture capitalist David Sacks as the White House’s “crypto tsar”.
However, investors have expressed disappointment at the supposed lack of momentum, highlighting Mr Trump’s failure to create a strategic Bitcoin reserve.
US Democrats have sought to target Mr Trump’s crypto ventures by announcing plans to put forward laws that would prevent senior government officials and their families from launching meme coins.
Sam Liccardo, a Democratic Congressman, said he planned to put forward the Modern Emoluments and Malfeasance Enforcement (Meme) Act on Thursday.
He told ABC News: “The Trumps’ issuance of meme coins financially exploits the public for personal gain, and raises the spectre of insider trading and foreign influence over the Executive Branch.”
The proposed law would apply to the president, vice president, members of Congress and White House officials, as well as their family members.
Online influencers have launched a series of meme coins in recent months seeking to capitalise on their often short-lived fame, and many often collapse after an initial spike in value.
While supporters of mainstream cryptocurrencies such as Bitcoin and Ethereum are seen by their supporters as a potential way to change payments and finance, meme coins have little use. Instead, they are seen as a way of showing support for certain personalities or a form of gambling.