Trump's Crypto Projects: Why Investing in Them Is a Guaranteed Path to Losing Capital
The digital asset market associated with Donald Trump's name represents one of the riskiest segments for retail investors. My analysis shows that the high-profile name is used solely as bait to attract capital, while the real picture ends with catastrophic losses of 90-99% for ordinary buyers. This is not just speculation — it is a classic pump-and-dump scheme, where early participants and insiders lock in profits, leaving retail investors with devalued assets.
TRUMP Memecoin
Launched on the Solana blockchain a few days before the inauguration in January 2025, the TRUMP token demonstrated classic dynamics. The peak price was $75.35, but today the asset trades around $1.7. This is a collapse of 97.7% from the all-time high. Insiders and early buyers successfully cashed out, while retail investors, including many supporters of the MAGA movement, were left with completely devalued assets.
MELANIA Memecoin
The MELANIA token entered the market immediately after the TRUMP release and suffered the same fate. The all-time high was recorded at $13.73, and the current price is around $0.075 — a drop of 99.45%. The scenario was identical: initial hype, distribution of shares in favor of insiders, and a subsequent crash. A popular brand associated with a famous family was effectively used to extract millions of dollars from retail buyers' pockets before a massive coin dump.
Trump Media & Technology Group (DJT)
The company went public through a merger with a SPAC in March 2024. Shortly after its stock market debut, the security 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 for a long time solely by political hype, which the actual business ultimately failed to justify.
American Bitcoin Corp (ABTC)
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, secured a listing on the Nasdaq exchange, and holds thousands of bitcoins on its balance sheet. The company's stock financials: 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
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 in 2004 and 2009. Later, 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 suffered colossal losses.
My expert opinion: Investing in projects affiliated with Trump is not just a risk, but financial "suicide" for retail investors. The structure of these assets is invariably designed to maximize benefits for insiders at the expense of a massive influx of capital from gullible buyers. History teaches us one thing: the Trump brand in business is not a guarantee of success, but a marketing tool for extracting profits from the retail audience.