The sharp correction in global cryptocurrency markets in recent months has also severely affected the family of US President Donald Trump.
The Trump family's total wealth has eroded by $1 billion, falling from $7.7 billion at the beginning of September to about $6.7 billion, according to the Bloomberg Billionaires Index. Much of this decline stems from losses in the value of the family's expanding crypto investments and related companies.
During Trump's second term, cryptocurrencies have completely reshaped the family's wealth. Memecoins attributed to him have lost nearly 25% of their value since August, while shares in his son Eric Trump's Bitcoin mining venture have nearly halved from their peak. Trump's social media company, which has entered Bitcoin with significant volume this year, is also trading at historic lows.
This scenario is part of a broader cryptocurrency downturn that has recently wiped out over $1 trillion in market value. These losses aren't limited to family fortunes; many individual investors involved in projects linked to the Trump brand have also suffered significant losses. Short-term investors who bought memecoins during the height of Trump's tenure have lost nearly all of their investments as of this month.
Despite this, Eric Trump isn't backing down. Speaking to Bloomberg, Trump said, “Now is a perfect time to buy. Those who can buy on dips and withstand price fluctuations will win.” He added that he's more optimistic than ever about the future of the crypto market.
According to experts, not only investments but also issuance and transaction revenues play a significant role in the Trump family's crypto strategy. Professor Jim Angel of Georgetown University said, “Individual investors can only speculate. The Trump family, on the other hand, can speculate, issue and sell their own crypto assets, and generate consistent income from this process.”
Trump Media & Technology Group, Truth Social's parent company, fell to an all-time low on November 19th following its Bitcoin and cryptocurrency investment push. According to a July report, the company holds approximately $2 billion in Bitcoin and cryptocurrency positions. Approximately 25% of the 11,500 BTC purchased at an average price of $115,000 are currently at a loss. Furthermore, the company's $147 million investment in Cronos (CRO) has nearly halved.
The family's largest crypto venture, World Liberty Financial, has seen its own token, WLFI, fall from 26 cents in early September to around 15 cents. The value of WLFI holdings has fallen from $6 billion to around $3.15 billion. Despite this, the family has generated around $900 million from token sales, with $500 million from the deal with Alto5Sigma alone.
American Bitcoin (ABTC), the new mining venture co-owned by Eric Trump and Donald Trump Jr., is trading on the Nasdaq. Its share price has more than halved from its peak of $9.31 in early September, wiping out at least $300 million in Eric Trump's stake.
The Trump memecoin associated with the family has suffered a sharp decline since its launch, falling 25% since the end of August. Bloomberg analysis shows that wallets linked to the family held 17 million tokens in the first few months. It's also estimated that 40% of the 90 million tokens unlocked in July went to the family. The current value of the coins is approximately $310 million, down $117 million since August, but the total value has increased by $220 million thanks to new unlocks.
*This is not investment advice.