Investments in Trump's crypto projects: why this is financial "suicide" for retail investors
Analyzing the market of digital assets associated with the Donald Trump brand, I come to a clear conclusion: investments in these projects are not just a risk, but a practically guaranteed loss of capital for the average investor. My observations and market data confirm that the president's prominent name is used as bait to attract retail funds, after which early participants and insiders lock in profits, leaving a mass of holders with devalued assets. The results of such investments are catastrophic: losses reach 90–99%.
TRUMP Memecoin: A Classic Pump-and-Dump Scheme
The token was launched on the Solana blockchain a few days before the inauguration in January 2025. The dynamics of its value are a clear example of manipulation. The peak price was $75.35, and the current price is around $1.7. This is a collapse of 97.7% from the high. Early buyers and insiders successfully cashed out, while retail investors, including many supporters of the MAGA movement, were left with completely devalued assets.
MELANIA Memecoin: An Identical Scenario
The token appeared immediately after the release of TRUMP. The all-time high was recorded at $13.73, and the current price is around $0.075, representing a drop of 99.45%. An absolutely identical scenario was observed here: initial hype, distribution of shares in favor of insiders, and a subsequent collapse. A popular brand, close to the famous family, was effectively used to extract millions of dollars from the pockets of retail buyers before a massive token dump.
Trump Media & Technology Group (DJT): Fundamental Weakness
The company went public through a merger with a SPAC in March 2024. The stock price corrected from $79 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 figures. The market valuation was sustained for a long time solely by political hype, which the real business ultimately failed to justify.
American Bitcoin Corp (ABTC): A Structure for Insiders
Eric Trump and Donald Trump Jr. own about 20% of the company through the deal structure. The organization entered the public market through a series of mergers, received a listing on the Nasdaq exchange, and holds thousands of bitcoins on its balance sheet. Stock financial indicators: 52-week high — $14.52, current price — around $0.74, drop from the recent peak — approximately 95%. The structure allowed Trump's sons to successfully monetize their stake through the public market, while ordinary retail shareholders once again suffered serious financial losses.
Historical Context: A Recurring Pattern
Similar examples can easily be found in the distant past. The Trump Taj Mahal casino opened in April 1990, and by July 1991, it had filed for bankruptcy. Trump Plaza and Trump Castle went through similar procedures in 1992, and the Trump Hotels holding in 2004 and 2009. In 2016, a high-profile fraud lawsuit over the Trump University case 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 incurred colossal losses.
My professional conclusion is unequivocal: investments in Trump projects can be safely called financial "suicide." History and new cases demonstrate a recurring pattern where retail investors invariably end up losing. In the current market conditions, I strongly recommend avoiding any assets tied to this brand unless you are an insider.