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The crypto market has seen a significant decline in recent weeks, losing billions in value. This downturn has also hit the Trump family, who have positioned themselves as outspoken crypto supporters in recent times.
Not only bitcoin and other major coins are under pressure, but the growing stack of Trump-linked cryptocurrencies and companies are also taking heavy hits. For many investors who entered these projects, the damage is even greater.
Trump Crypto Projects Tumble #
It starts with Trump’s own memecoin. The price of Official Trump collapsed shortly after the president’s inauguration and continues to decline. The coin is now trading 92% below its record high.
The exact size of the family’s stake remains unclear. Gauntlet estimates that the Trump family holds tens of millions of tokens, reports Bloomberg. The total value of their position dropped by more than €100 million to around €270 million.
Other projects involving the Trumps are also taking heavy hits. Eric Trump is associated with American Bitcoin Corp, a mining company that went public this year.
Its stock has since more than halved, making his position worth about €260 million less than in September.
Then there’s World Liberty Financial, the Trump family’s largest crypto project. Compared to its September launch, the token’s value has nearly halved, from $0.26 to $0.1575.
Tricks to Limit the Damage #
Trump Media, the company behind Truth Social, has also proven vulnerable in a weaker crypto climate. The company purchased approximately €1.74 billion in bitcoin and other investments earlier this year, but is currently sitting on significant losses.
At the same time, the company invested in Crypto.com’s CRO tokens, which have since halved in value. This caused Trump’s stake in the company to lose nearly €700 million since September.
The losses seem enormous, but it’s primarily the investors who had faith in these projects who are suffering the biggest losses.
The Trump family has ways to limit their losses. Since July, nearly 90 million additional TRUMP memecoins that were still “locked” have been released. This totals approximately €190 million.
Through the WLFI project, the Trumps also managed to raise extra money. Through token sales and smart deals, including a sale round via the exchange fund Alt5 Sigma, hundreds of millions in revenues flowed to the Trump family.
Jim Angel, a finance professor at Georgetown, summarized it as follows:
“Retail investors can only speculate. The Trumps can not only speculate, but also create tokens themselves, sell them, and profit from those transactions.”