It was pitched as a push towards financial freedom, a digital empire built on the most famous—and polarising—brand in modern American politics. Yet, the Trump family’s cryptocurrency ambitions are now sinking in spectacular fashion, wiping out a fortune and leaving a trail of confused and frustrated investors in its wake.
The speed and scale of the disaster are truly astonishing. While the wider digital currency market has been struggling, with Bitcoin itself sliding roughly 25% since its October peak of approximately $126,000, the assets tied to the Trump name are plummeting at an even more aggressive pace.
Analysts now estimate that the turmoil across various coins, stocks, and ventures has seen roughly $1 billion wiped from the Trump family’s net worth in recent weeks. Their collective estimated wealth fell from $7.7 billion in early September to $6.7 billion by late November.
At the core of the fiasco is World Liberty Financial, which was touted as the family’s flagship crypto venture. Far from ushering in a new era of prosperity, the project has quickly become a cautionary tale for the risks associated with brand-driven digital assets. The WLF token has tumbled more than 30% from its high point in September.
Furthermore, a firm once linked to the project, Alt5 Sigma, which was marketed as a key fintech partner, has seen its shares crash by a crippling 75%. Bloomberg has reported that regulators are now scrutinising the company’s books, stating ominously that the numbers ‘do not look friendly.’
The High Cost Of Trump Family’s Cryptocurrency Bets
The problems extend far beyond just the dedicated crypto ventures. Even the family’s more established digital media property, Trump Media and Technology Group, which owns Truth Social and is majority-owned by Donald Trump, has suffered a severe reversal of fortune.
Having traded at $42 a share in early January, it has now slipped to around $11 a share. This downturn follows the company’s significant and now seemingly ill-timed investments in Bitcoin.
Supporters remain optimistic, insisting the stock will recover once the broader crypto market rebounds, but for now, the losses are substantial.
Perhaps the most dramatic financial carnage was seen at Eric Trump’s mining company, American Bitcoin Corp (ABTC). The stock faced a shocking and instantaneous fall on a recent Tuesday, losing more than 30% of its value in under a minute.
By the time the markets closed, the company was down a devastating 39%. This sudden sell-off was triggered by the public release of restricted shares—a supply shock that would undoubtedly ‘shake any executive,’ as Bloomberg noted.
Although the stock did manage a minor rebound of 8.7% in premarket trading the following day, the financial damage was already cemented.
Despite the carnage, Eric Trump has sought to brush off the collapse with a confidence that many observers feel borders on bravado. He took to X, insisting on his long-term commitment.
‘I’m holding all my ABTC shares I’m 100% committed to leading the industry,’ he posted. He appears utterly determined to convince investors that this is merely a temporary ‘rough patch’ and remains bullish on the digital future.
He told Bloomberg in November that those ‘who buy dips and embrace volatility will be the ultimate winners,’ adding, ‘I have never been more bullish on the future of cryptocurrency and the modernization of the financial system.’
Vanity Coins And Regulatory Scrutiny: The Trump Family’s Cryptocurrency Backlash
The most visible sign of the brand’s digital implosion, however, comes from the world of memecoins—the light-hearted, often speculative corner of crypto. Coins named after Donald Trump and First Lady Melania Trump, which enjoyed a social media buzz when the family returned to the White House in January, have nearly vanished.
The ‘Trump coin’ has seen a terrifying drop of 90% from its record value, while the ‘Melania coin’ has all but disappeared, suffering a colossal 99% drop. If these tokens were designed as a fun tribute to the First Family, the market, in its brutal efficiency, ‘seems to have delivered its own punchline.’
The spectacular failure is prompting wider questions about the use of the powerful Trump name in the financial sector. Hilary Allen, a law professor at American University’s Washington College of Law, suggested that the brand’s association may now be doing more harm than good for the crypto space’s goal of achieving legitimacy.
‘The Trump presidency has been a double edged sword for legitimacy,’ Professor Allen told Bloomberg. ‘Trump started launching his own crypto projects, many of which lost value very quickly. If the goal was to achieve legitimacy through the Trump family, that’s not helped.’
Her assessment echoes the concerns whispered across financial circles for months, as Trump-branded coins rose and fell with a volatility that seemed disconnected from any conventional economic logic. The family’s shrinking digital fortune is now a stark and visible indicator of the wider turmoil and market confidence trending downward.
Originally published on IBTimes UK
