Trump’s crypto deals: Investors earned almost nothing

President’s Crypto Deals

The Trump family made billions – the investors made almost nothing

The “$Trump cryptocoins” made the Trump family a lot of money. But investors are apparently stuck with them.

The family of US President Donald Trump is said to have earned around 2.3 billion US dollars (around 1.9 billion euros) from crypto transactions since taking office. But most investors in digital currencies such as the $Trump Coin and the Melania Coin came away almost empty-handed. As the Reuters news agency reports, the Trump family used the same tactics four times to profit from investments in their crypto products – and hardly invested any money themselves.

More than a million investors are said to have lost up to 2.3 billion US dollars (around 1.9 billion euros), according to the report. Small investors who bought the crypto coins, but also those who invested in crypto funds, are said to have been particularly affected. Losses also include those from investments that could not be converted into profit through resale.

The process was always the same: the tokens were brought onto the market with a lot of advertising effort, the demand was great, and they initially gained in value. The family and the Trump entourage then dumped them and pocketed the profits. As a result, the cryptos lost their value drastically, and many investors, especially small ones, were left in the lurch.

For its research, Reuters used data from the Blockchain, a publicly accessible database of cryptocurrency trading. In addition, thousands of official documents from Trump family companies, among others, were viewed.

The companies in focus are World Liberty Financial, American Bitcoin and AI Financial Corporation, formerly ALT5 Sigma and $Trump Memecoin, a cryptocurrency. All companies sold so-called tokens, a kind of digital voucher. Investors bought them in the hope that they would increase in value. But the opposite was the case.

The $Trump coins, whose issue price was originally $28.73, are now worth significantly less and have lost around 93 percent of their value since their peak, reports the American online magazine “Ars Technica”. The Melania Trump Memecoin, which was introduced at the same time, even shows a decline in value of 99 percent.

Matt, a 45-year-old mechanical engineer from Indiana, told Reuters that he wanted to recoup his recent investment losses last September and invested $40,000 – 30 percent of his crypto and stock portfolio at the time – in ALT5 Sigma shares. “If a stock has some level of support from the president – at least from his sons – you would think it would go up,” he said.