TRUMP meme coin crashes, retail investors lose everything! Trump family still earns $900 million

Trump family wealth shrinks from $7.7 billion to $6.7 billion: from TRUMP meme coin to Bitcoin mining, the crypto crash has severely hit the Trump family’s assets. Eric Trump’s holdings in American Bitcoin have shrunk by nearly half from their peak. However, the Trump family still profits from token sale revenue sharing, with World Liberty Financial alone booking $900 million, while retail investors have become the biggest losers.

Crypto Crash Wipes Out $1 Billion of Trump Family Wealth

During President Donald Trump’s second term, crypto assets changed his family’s financial landscape. Now, the Trump family and its followers are experiencing firsthand the inherent volatility of cryptocurrencies. The recent sell-off is part of a broader crypto market plunge that has wiped more than $1 trillion off the total crypto asset market cap.

According to the Bloomberg Billionaires Index, the Trump family’s wealth has shrunk from $7.7 billion in early September to about $6.7 billion, with the drop directly related to the family’s rapidly expanding crypto investment portfolio. Since August, the Trump-named meme coin TRUMP has lost about a quarter of its value; Eric Trump’s stake in a Bitcoin mining company has been cut by nearly half from its peak; and Trump Media & Technology Group, which began accumulating Bitcoin this year, has seen its stock price drop to near record lows.

These investments involve complex transactions far beyond direct bets on cryptocurrencies. Ordinary investors now have more ways to participate in Trump-related crypto projects and may face greater losses. For example, anyone who bought TRUMP at its price peak after the meme coin was announced during Trump’s inauguration weekend would have lost nearly all of their investment by this month.

Details of Trump Family’s Crypto Asset Crash

TRUMP Meme Coin: Down about 25% since August, with almost $120 million in family paper losses

American Bitcoin (ABTC): Eric Trump’s stake has shrunk by over $300 million from a $630 million peak

Trump Media & Technology Group: Bitcoin holdings down 25%, CRO token holdings nearly halved

World Liberty Financial: WLFI token book value dropped from $6 billion to $3.15 billion

Retail Investors Lose Everything, Trump Family Still Profits $900 Million

Despite the crypto crash severely hurting the Trump family’s wealth, their crypto holdings have built-in buffers. While their tokens and crypto-related company stocks have plunged, they’re still able to profit through other avenues in the crypto industry. Take World Liberty Financial, a crypto project they co-founded: although the paper value of their associated tokens has shrunk, they’re still entitled to a proportional share of token sale proceeds regardless of price swings.

“Retail investors can only speculate,” said Jim Angel, a finance professor at Georgetown University. “The Trump family can not only speculate, but also issue tokens, sell tokens, and profit from those transactions.” According to Bloomberg, the Trump family received about 75% of World Liberty Financial’s token sale proceeds—taking in $500 million through a deal with Alt5 Sigma Corp. and another $400 million from WLFI token sales, totaling $900 million in profits.

But Alt5’s investors weren’t as lucky. Since the deal was announced, Alt5’s share price has dropped about 75%. The value of the Trump family’s Alt5 equity, held through World Liberty Financial, has shrunk by about $220 million, but they still profited from the transaction. This structural advantage lets the Trump family stay profitable even during the crypto crash, while ordinary investors bear all the losses.

Trump Media & Technology Group’s Big Bitcoin Bet Loses $800 Million

The stock price of Truth Social’s parent, Trump Media & Technology Group, hit a record low on Wednesday, partly due to poor timing of its crypto investments. Since September, the value of Trump’s stake in the company has dropped by about $800 million. He is the company’s largest shareholder, with his shares held in a trust managed by his eldest son, Donald Trump Jr.

The unprofitable Trump Media & Technology Group has been experimenting with new businesses, including crypto. According to a July statement, the company spent about $2 billion purchasing Bitcoin and options. Its 11,500 Bitcoins were bought at an average of $115,000 per coin, and this position has lost about 25% so far.

Additionally, the company began accumulating CRO, a niche token issued by Singapore-based crypto exchange Crypto.com. By the end of September, Trump Media’s CRO holdings were worth about $147 million, but have since lost nearly half their value. Trump Media & Technology Group’s stock price has plunged 66% in the past year, and the recent crypto crash has further worsened the company’s financial situation.

Eric Trump’s Mining Investment: ABTC Shares Halved

About two months after Trump’s inauguration, the Trump family got involved in another new crypto project. Eric Trump and Donald Trump Jr. executed a series of complex deals with crypto company Hut 8 Corp., which exchanged its own Bitcoin mining machines for a majority stake in the newly formed American Bitcoin Corp.

Eric Trump owns about 7.5% of American Bitcoin, which is listed on Nasdaq (ticker: ABTC), while Donald Trump Jr. holds a small, undisclosed stake. ABTC shares peaked at $9.31 in early September, when Eric’s stake was worth about $630 million. Since then, the stock price has fallen by more than half, slashing the Trump family’s wealth by over $300 million.

Investors who bought ABTC stock at its IPO are now down 45%. This deal remains one of the clearest cases of the Trump family gaining hundreds of millions in new wealth from recent crypto ventures, but ordinary investors have suffered huge losses in this crypto crash. Eric Trump says he remains confident, repeatedly urging investors to buy more even during the crypto market downturn.

“This is an excellent buying opportunity,” he said in a statement to Bloomberg News. “Those who buy the dip and embrace volatility will ultimately win. I’ve never been more optimistic about Bitcoin’s future or the modernization of the financial system.”

TRUMP Meme Coin Causes Heavy Losses for Retail Investors

(Source: CoinMarketCap)

The TRUMP meme coin has been in free fall since its launch announcement during the presidential inauguration weekend, losing another 25% since late August. The size of the Trump family’s holdings in the token is unclear. Risk modeling firm Gauntlet found that several months after launch, wallets associated with the issuer held nearly 17 million tokens, with another 17 million transferred to crypto exchanges.

At current prices, the Trump family’s token holdings are worth about $310 million, down about $117 million since late August. But according to the Bloomberg Billionaires Index, the Trump family’s token holdings have increased significantly. Some tokens previously locked up by insiders and the issuer are to be gradually unlocked over three years.

After the July unlocking event, insiders were able to unlock nearly 90 million more TRUMP memecoins, worth about $220 million—meaning the Trump family’s total holding value has actually risen. It’s unclear whether the Trump family has sold any of these tokens since July. This structural advantage allows the Trump family to maintain their asset size through token unlocks even during the crypto crash, while retail investors face the risk of total loss.