Cryptocurrencies Generate Trump Supporters' Wealth: Dramatic Losses Reach Billions

The last crash in the cryptocurrency market reveals an asymmetry between ordinary investors and industry-influential families. While the average purchaser of the memecoin TRUMP could have lost almost their entire investment, the Trump family—despite facing significant losses—possesses buffering mechanisms unavailable to other market participants.

The scale of the crisis is estimated at billion-dollar payouts

According to Bloomberg Billionaires Index, in just one month since the beginning of September, the Trump family’s wealth decreased from approximately $7.7 billion to $6.7 billion. This massive erosion of value is directly linked to the increasing shares of the family in the cryptocurrency asset portfolio.

The global sell-off in the digital asset market caused the total value of all cryptocurrencies to drop by over $1 trillion. In this turbulent scenario, each segment of the Trump family’s portfolio related to the crypto sector experienced disproportionate losses.

Discrepancy between market tests and internal benefits

Finance professor Jim Angel from Georgetown University points out a key difference: “Retail investors can only speculate, while those issuing tokens and managing protocols can not only speculate but also generate revenue at every stage of the process.”

This asymmetry becomes particularly evident in the case of World Liberty Financial— the flagship crypto project of the family. Although the book value of WLFI tokens has fallen from nearly $6 billion at its peak to about $3.15 billion currently, the family retains the right to a proportional share of sales revenue. In July, World Liberty Financial entered into a deal with Alt5 Sigma Corp., receiving $750 million in cash—a profit that Alt5 investors never experienced because their shares dropped by 75%.

Loss portfolio: where did the billions go

Trump Media & Technology Group: The parent platform of Truth Social, in which Donald Trump is the largest shareholder, hit historic lows. Since September, Trump’s share value has decreased by about $800 million. The company allocated around $2 billion to 11,500 bitcoins, purchasing them at an average of $115,000 per coin—a position currently losing 25% of its value. Additionally, the company accumulates CRO tokens, whose value has nearly halved since the end of September.

American Bitcoin Corp.: Eric Trump—Trump’s son—holds a 7.5% stake in the Nasdaq-listed company. After reaching a peak valuation of $630 million in shares, the value of his holdings has decreased by over $300 million due to a more than 50% drop in the stock price.

Memecoin TRUMP: Since the announcement on President’s Day weekend, the token has been continuously losing, with losses reaching about $120 million since the end of August. However, the family also holds significant amounts of unlocked tokens, currently worth around $220 million, which partially offset the overall losses.

An optimistic outlook: will history repeat itself

Eric Trump remains optimistic, repeating that “this is a great buying opportunity” and that “those who buy the dips and accept volatility will ultimately come out ahead.” Indeed, Bitcoin has survived several major price corrections since 2009 and has set new records.

However, for ordinary investors buying at the peak—whether in ABTC stocks, WLFI tokens, or TRUMP memecoin—the road back to profitability remains uncertain. As the market wobbles, asymmetry of information and access to internal revenue streams proves to be the best insurance for those who can afford it.