The Trump family’s crypto empire appears to be in a precarious position at the end of this turbulent year. The figures speak for themselves, with an estimated total loss of over $1 billion since last October. We take stock of the situation…
Is the market’s “presidential boost” over?
The inclusion of cryptocurrencies in Donald Trump’s campaign program provided an opportunity for multiple opportunistic investments to ride the wave, starting with the highly controversial launch of the TRUMP memecoin, whose price has now fallen more than 90% since its peak last January.
This example alone could almost sum up the Trump family’s crypto journey, currently mired in a widespread decline in the value of its companies operating within this ecosystem, such as the family flagship World Liberty Financial, whose WLFI token is down more than 50%.
Some would say that these declines are part of the game in the cryptocurrency market. However, there have also been successive collapses for publicly traded companies such as the miner American Bitcoin, whose stock fell more than 50% on December 2 alone, bringing its price to 75% below its peak on September 9.
The reason given, according to Eric Trump? The scheduled release of its shares, which was clearly the cause of massive sell-offs.
According to analysts at Bloomberg, this situation has wiped out more than $1 billion in value from the Trump family’s crypto projects since last October. These are significant losses for their investors—especially those who bought in at the peak—to the point of calling into question the “presidential boost” to the market that began when he was elected.
A “Trump premium” turned into a “Trump burden”?
And what was supposed to be a new impetus for the cryptocurrency sector is beginning to take the form of a real “Trump burden,” largely accentuated by the numerous cases of insider trading and corruption that have accumulated in the US president’s family’s track record in the field.
This observation was made by Hilary Allen, a law professor at American University Washington College of Law, who notes that the hope for legitimacy brought by American crypto players during Donald Trump’s election is dissolving at the same rate as their confidence in the positive impact of his presidency.
The Trump presidency has been a double-edged sword in terms of visibility. Trump began launching his own crypto projects, many of which lost value very quickly. If the goal was to gain legitimacy through his family, it did not help.
Despite everything, the Bloomberg Billionaires Index indicates that the Trump family’s gains in the cryptocurrency sector remain positive and substantial, even in this bear market. The situation appears much more complicated for individual investors involved in this presidential adventure.
