Crypto news

The digital asset market is full of big names, but not every one of them promises profits for investors. Recently, warnings about extremely high risks associated with crypto projects affiliated with Donald Trump have been increasingly frequent. Analysts are increasingly calling investments in such instruments financial "suicide" for retail market participants.

The mechanism we are observing is a classic pump-and-dump scheme. The politician's prominent name is used as a magnet to attract capital, primarily from unqualified investors driven by political sympathies. While early participants and insiders cash out multi-million dollar profits, ordinary buyers are left with devalued assets, losing between 90% and 99% of their investments.

Memecoin TRUMP: A 97.7% Drop

The token was launched on the Solana blockchain in January 2025, just days before the president's inauguration. Its price history is a clear illustration of an inevitable collapse.

Early buyers, along with insiders, successfully cashed out. Retail investors, among whom were many supporters of the MAGA movement, were left with completely devalued tokens. This is not just volatility — it is a planned transfer of liquidity from retail to large holders.

Memecoin MELANIA: A 99.45% Crash

The token appeared on the market immediately after the release of TRUMP. The all-time high was recorded at $13.73. Today, the current price is around $0.075 — a drop of 99.45%.

The scenario was absolutely identical: initial hype, distribution of shares in favor of insiders, and a subsequent crash. A popular brand, close to the famous family, was used to extract millions of dollars from the pockets of retail buyers before a massive token dump.

Trump Media & Technology Group (DJT): -90% from Peak

The company went public through a merger with a SPAC in March 2024. Shortly after its debut, the stock traded above $79. The price has now corrected to $7.5, showing a decline of more than 90% from its highs.

The organization loses hundreds of millions of dollars annually with minimal revenue. The market valuation was sustained solely by political hype, which the actual business failed to justify.

American Bitcoin Corp (ABTC): -95% from Peak

Eric Trump and Donald Trump Jr. own approximately 20% of the company through the deal structure. The organization entered the public market through a series of mergers, was listed on Nasdaq, and holds thousands of bitcoins on its balance sheet.

Financial performance of the company's stock:

• 52-week high: $14.52
• Current price: around $0.74
• Decline from recent peak: approximately 95%

The structure allowed Trump's sons to successfully monetize their stake through the public market. Ordinary retail shareholders once again suffered serious financial losses.

Historical Context: A Pattern, Not a Coincidence

Similar examples can easily be found in the distant past. The famous Trump Taj Mahal casino opened in April 1990, and by July 1991, it had filed for bankruptcy. The Trump Plaza and Trump Castle casinos went through similar procedures in 1992, and the Trump Hotels holding company in 2004 and 2009. Later, in 2016, a high-profile fraud lawsuit regarding Trump University had to be settled for $25 million.

The long list of failed or closed commercial ventures also includes Trump Steaks, Trump Airlines, Trump Shuttle, and Trump Vodka.

Donald Trump himself has never personally gone through bankruptcy proceedings. All legal processes concerned only his companies, while numerous creditors and partners suffered colossal losses.

My analysis shows that investing in projects affiliated with the Trump brand is not just a high-risk bet. It is a financial trap with a predictable outcome for the retail investor. History repeats itself: a big name attracts capital, insiders take profits, and the mass investor is left with losses. At this stage, I would recommend considering such assets exclusively as speculative instruments with an extremely low probability of long-term success for non-professional participants.