Trump's Crypto Assets: Why Investing in Them is a Guaranteed Path to Losing Capital
Financial and digital assets associated with the Donald Trump brand represent one of the riskiest options for retail investors. My analysis shows that the president's high-profile name is used here solely as a magnet to attract capital from unsophisticated market participants. As a result, early insiders lock in profits, while ordinary buyers are left with devalued assets, losing between 90% and 99% of their investments.
TRUMP Memecoin: A Classic Pump-and-Dump
The token was launched on the Solana blockchain a few days before the inauguration in January 2025. The asset's price dynamics are a classic example of a pump-and-dump scheme. The peak price reached $75.35, but the current value hovers around $1.7. This represents a 97.7% collapse from the all-time high. Early buyers, along with insiders, successfully cashed out, while retail investors, including many supporters of the MAGA movement, were left with completely devalued assets.
MELANIA Memecoin: A Repeat Scenario
The token entered the market immediately after the release of TRUMP. The all-time high was recorded at $13.73. As of today, the current price is around $0.075, representing a 99.45% decline. An absolutely identical scenario was observed: initial hype, distribution of shares in favor of insiders, and a subsequent collapse. A popular brand, closely tied to a famous family, was effectively used to extract millions of dollars from the pockets of retail buyers 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 over 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 on political hype, which the real 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, obtained 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, decline 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 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 over the Trump University case had to be settled for $25 million. The long list of failed 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 involved only his companies, while numerous creditors and partners incurred colossal losses.
My professional opinion: Investments in projects associated with the Trump brand demonstrate a consistent historical pattern: retail investors systematically lose capital, while insiders and organizers make a profit. Calling such investments financial "suicide" is not an emotional exaggeration, but a statement of objective market reality, confirmed by years of statistics.