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A recent survey conducted by Chainplay in partnership with Storible examined the impact of politically themed memecoins on investors. Among the 1,066 crypto investors surveyed, nearly 80% had purchased tokens linked to political figures, such as CAR, LIBRA, and TRUMP.
Notably, around 37% of these buyers were first-time investors, drawn in by both political branding and aggressive viral marketing strategies. However, the study also found that 21% of these investors ultimately abandoned the crypto market entirely after their experience with these assets.
The report highlighted a troubling trend among new investors, stating:
“Rather than encouraging long-term participation in the crypto space, these memecoins have fueled widespread disillusionment. The extreme volatility, frequent pump-and-dump cycles, and lack of intrinsic value may have discouraged many from further engagement in the market.”
Despite their initial surge in popularity, these political memecoins have experienced sharp declines in value, leaving many investors with substantial losses. The study found that two-thirds of those who invested in president-endorsed memecoins are currently in the red, reinforcing concerns about their long-term viability.
Study Highlights Massive Losses Among Political Memecoin Investors
According to the study data, as of February 19, nearly 560,000 TRUMP investors (52.3%) were facing losses, with approximately 545,000 individuals losing up to $10,000 each. Additionally, 287 TRUMP investors suffered losses exceeding $1 million, contributing to a total collective loss of $3.6 billion.
The situation was even worse for LIBRA investors, as the data revealed that three-quarters were in the red. More than 101,000 investors had lost up to $10,000, while 26 LIBRA investors saw losses exceeding $1 million. However, the study also found that around 36 investors managed to earn over $1 million from their LIBRA holdings.
For CAR investors, the study showed that 66% had incurred losses, while a mere 0.07% of investors managed to earn more than $100,000.
Political Memecoins: High Participation, High Risk
The study concluded that politically affiliated memecoins have a strong ability to attract mass participation. However, their highly speculative nature has resulted in substantial financial losses for many investors, particularly first-time buyers, who have been deterred from engaging further with cryptocurrency.
“This is an alarming trend, as widespread negative experiences could slow down broader adoption and trust in digital assets,” the report warned.
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