Trump's Crypto Projects: Why This Is a Trap for Retail Investors, Not an Investment
The market for digital assets associated with Donald Trump's brand represents an extremely risky zone for unprepared capital. My analysis shows that virtually all such projects follow the same scenario: rapid growth on a wave of hype, profit-taking by insiders, and then a catastrophic collapse for retail buyers. This is not investing, but a classic pump-and-dump scheme, where the president's name is used as bait.
Let's examine the key assets. The TRUMP memecoin, launched on Solana in January 2025, peaked at $75.35. Its price now hovers around $1.7, representing a 97.7% decline from its all-time high. A similar fate befell the MELANIA token: from a peak of $13.73, it crashed 99.45% to $0.075. In both cases, early buyers and insiders successfully cashed out, leaving ordinary holders with devalued assets.
Traditional assets are also under pressure
The problem is not limited to cryptocurrencies. Shares of Trump Media & Technology Group (DJT), which went public via a SPAC, have fallen more than 90% from their highs of $79. The company generates minimal revenue while incurring annual losses in the hundreds of millions of dollars. Its market valuation was sustained solely by political hype, which the business has failed to justify.
The situation is no better with American Bitcoin Corp (ABTC), where Eric Trump and Donald Trump Jr. own about 20% through a complex deal structure. The company's stock has fallen roughly 95% from its 52-week high of $14.52, currently trading around $0.74. The structure allowed Trump's sons to successfully monetize their stake through the public market, while retail shareholders once again suffered significant losses.
Historical context: a pattern, not a coincidence
The current situation is not new. The Trump Taj Mahal casino filed for bankruptcy 15 months after opening in 1990. Trump Plaza and Trump Castle went through similar proceedings in 1992, and the Trump Hotels holding company in 2004 and 2009. The list of failed commercial ventures includes Trump Steaks, Trump Airlines, Trump Shuttle, and Trump Vodka. It is important to note that Donald Trump himself has never personally filed for bankruptcy — all proceedings concerned only his companies, leaving creditors and partners with colossal losses.
My expert opinion: Investing in projects associated with the Trump brand is not just a risky bet, but a virtually guaranteed path to capital loss for retail investors. The historical pattern of failures, supported by current data on crypto assets, indicates that these projects are structured for profit extraction by insiders, not for creating long-term value. Calling this financial "suicide" is not an exaggeration, but a statement of fact.