Cryptocurrency Market Takes a Hit, Impacting Trump’s Ventures
In just over a month, the cryptocurrency market has seen a staggering decline of $1.2 trillion in value. Since mid-October, a steady drop has erased much of the gains for both small and large investors. This includes well-known figures like U.S. President Donald Trump, who had contributed to the earlier excitement around the industry.
The so-called “Trump effect” seems to have faded completely, bringing digital assets back to levels seen before the surge. While his brief endorsement of the crypto space initially stirred up some excitement, investors appear to have moved on. Current conversations are now revolving around potential AI bubbles and decreasing interest rates. As a result, Trump’s business empire is also feeling the weight of this downturn. Reports suggest it has lost at least $1 billion in wealth since September, falling from $7.7 billion at the start of the month to around $6.7 billion now, as shown by the Bloomberg Billionaires Index. This decline largely stems from the family’s increasing involvement in crypto projects.
The Trump family has fully embraced digital assets—launching tokens, starting companies, investing heavily, and even pardoning a convicted crypto tycoon. They have actively promoted legislation benefiting the sector, which, at one point, propelled major cryptocurrencies to record highs. Yet, in a notoriously unstable market, volatility is a constant companion. A vivid example of this is the launch of the meme coin $TRUMP, which had no real backing other than its association with the former president’s image. Just days before his inauguration, the token’s value skyrocketed to over $15 billion but quickly plummeted, losing as much as 76% of its value minutes later.
In the months that followed, $TRUMP faced its share of ups and downs, particularly experiencing a sharper decline since mid-August, where it tanked by about 40% and has since dropped 85% overall. Currently, it’s unclear what the Trump family’s stake is worth, but estimates suggest they hold around 40% of the total tokens, valued at about $310 million—down $117 million since late August.
However, the story doesn’t end there for the Trump family’s crypto ambitions. Their main project, the cryptocurrency platform World Liberty Financial, issued the WLFI token, which has also suffered, dropping 38% since early September. At its peak, tokens owned by close associates were valued at approximately $6 billion, but have since halved to around $3.15 billion, according to Bloomberg’s data. Notably, these holdings are not counted by authorities as they aren’t traded on organized exchanges.
On a brighter note, not all of the business ventures have led to losses. In August, the Trump family sold some assets to Alt5 Sigma Corp., a biotech-turned-fintech firm led by Eric Trump, which netted $750 million in cash and stock for their company. Unfortunately, Alt5 Sigma has fared poorly as well, with its stock price falling 78% since that deal.
World Liberty Financial served as the entry point for President Trump’s sons into the crypto space. Beyond this venture, they’ve expanded into other related companies. For instance, Eric Trump co-founded a cryptocurrency mining company called American Bitcoin, where he serves as chief strategy officer. He owns about 7.5% of the Nasdaq-listed entity, and Donald Trump Jr. has a smaller stake, the specifics of which aren’t clear. The stock peaked on September 9, boosting Eric Trump’s stake to $630 million, but has since crashed, dropping 53% and erasing over $300 million from his net worth.
Additionally, the Trump family has attempted to make inroads into the cryptocurrency industry through Trump Media. They’ve filed applications to launch three exchange-traded funds (ETFs), including ones linked to Bitcoin and Ether, as well as a third that tracks these cryptocurrencies alongside others like Solana and XRP. According to July statements, the company has invested about $2 billion into significant cryptocurrencies and possesses around 11,500 Bitcoin acquired at a price of roughly $115,000, marking a 25% drop in value. They’ve also started buying Cronos (CRO), an obscure token, and by late September held approximately $147 million in it. Since then, CRO has shed 45% of its value, and Trump Media is down 70% this year, nearing all-time lows.
Nevertheless, the Trump family continues to express optimism about the cryptocurrency market. Through his X account, Eric Trump has been encouraging people to invest during the downturn, though he recently cautioned potential investors to stay away if they aren’t ready for the volatility. It remains unclear whether this mindset will be a sustainable approach in such a wildly fluctuating market, or if it could turn out to be a major gamble for their empire—one that could test the patience of a notably unpredictable president.
