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Hunter Biden's $LAPTOP cryptocurrency suffered a dramatic collapse shortly after its Sept. 9 launch, falling from a brief peak near $190 per token to less than $2 and leaving thousands of buyers with losses. Blockchain analytics firm Bubblemaps estimated that about 80% of wallets that purchased the token were underwater after the crash.

The meme coin was created around the controversy surrounding a laptop that Hunter Biden left at a Delaware repair shop and that became a major subject of political and media attention during the 2020 presidential campaign.

The former first son presented the cryptocurrency as an effort to reclaim the laptop narrative and build a community around the token. But within minutes of trading, the project became an example of the extreme volatility associated with politically themed meme coins.

Bubblemaps estimated that more than 15,000 wallets lost money. The company's analysis described the launch as a "bloodbath."

$LAPTOP Surges Then Collapses

The $LAPTOP token launched on Coinbase's Base network. Its initial price quickly surged, with different market data services recording peaks ranging from roughly $190 to more than $300, before the price collapsed. CoinTelegraph reported that the token fell 95.7% during its first hour of trading.

The sharp price movement was made possible in part by extremely thin liquidity. Quartz reported that the token's liquidity pool contained only a small fraction of the value implied by its briefly elevated market capitalization.

That distinction is important for cryptocurrency investors. A token can display a very high quoted price or market capitalization without having enough liquidity for large numbers of investors to sell at anything close to that price.

Joni Zhuleku, co-founder and head of research at Altcoin Pro, said thin liquidity can cause a relatively small trade to produce an enormous change in a token's quoted price.

Most Buyers Lost Money on $LAPTOP

The collapse left ordinary traders exposed to substantial losses.

Bubblemaps reported that more than 80% of wallets that purchased $LAPTOP were in the red. The Block separately reported that more than 11,500 wallets were underwater following the launch and said many of the largest holders appeared to be newly funded wallets.

One reported trade illustrated the potential damage. According to blockchain analysis cited by the New York Post, an anonymous trader turned an investment of roughly $250,000 into approximately $1.18 million within minutes, while other buyers suffered steep losses.

The contrast between early winners and later buyers fueled accusations online that the token resembled a "rug pull," a term used in cryptocurrency markets for schemes in which insiders or developers extract value while other holders are left with sharply devalued assets.

However, there has been no finding that Hunter Biden or the $LAPTOP project committed fraud or carried out a rug pull. The available blockchain analyses also have not established that Biden personally sold tokens during the collapse.

Biden Denies Profiting From the $LAPTOP Crash

Biden has denied that he or members of his team sold $LAPTOP during the price collapse.

In an X post, he attributed the extreme price movement to technical problems and what he called "predatory" early traders. He said the project's team allocation was locked and that he personally had not made money from the launch.

Biden later acknowledged that the launch contained a significant error and said the project would work to increase liquidity and trading volume.

He also said he intends to remain involved with $LAPTOP rather than abandon the project following its disastrous debut.

Exactly how much money Biden or other project participants may ultimately receive from the token remains unclear.

The Controversy of $Laptop Behind the Token

The name $LAPTOP refers to one of the most contentious episodes surrounding Hunter Biden.

In 2019, a Delaware computer-repair shop owner said Hunter Biden had left a laptop at the business and never returned to retrieve it. The contents subsequently became the subject of intense political debate and media coverage.

The laptop story became particularly controversial during the 2020 presidential campaign, with competing claims over the authenticity, significance and dissemination of material reportedly recovered from the computer.

By naming his cryptocurrency after the laptop, Biden effectively turned a long-running controversy into the branding for a digital asset.

The move also placed $LAPTOP within the rapidly expanding market for celebrity and politically themed cryptocurrencies.

Meme Coins Carry Significant Risks

Meme coins generally derive much of their appeal from attention, community participation and internet culture rather than from established business models or traditional financial fundamentals.

Their prices can therefore move dramatically in a short period. The $LAPTOP launch demonstrated how limited liquidity can amplify those movements, particularly when large numbers of traders attempt to buy or sell simultaneously.

The episode also illustrates the risks of buying tokens immediately after launch. Early prices may not represent a stable market value, and investors can find themselves unable to exit a position without accepting substantial losses.

The collapse of $LAPTOP does not establish that the project was fraudulent, but it does demonstrate the dangers of extreme volatility and concentrated token ownership.

Additional Information

Readers can review The Washington Post's report on the $LAPTOP crash for additional reporting on the launch and the losses reported by Bubblemaps.

For cryptocurrency-specific analysis, CoinTelegraph's report on the $LAPTOP collapse examines the token's launch and its rapid decline.

The Block's analysis provides additional information about the token's airdrops, liquidity and early trading activity.

For related cryptocurrency reporting by Jackie Allen, readers can visit USA Herald's article ZCash Security Scare Raises Questions About AI-Powered Cryptocurrency Exploits, which examines the intersection of cryptocurrency security and artificial intelligence.

Readers can also explore Jackie Allen's USA Herald author page for additional technology, business and cryptocurrency coverage.

USA Herald's cryptocurrency legal issues coverage also includes Allen's reporting on cryptocurrency-related cases and developments.