Trump's Crypto Projects: Why Investing in Them is a Guaranteed Path to Capital Loss
The market for digital assets associated with Donald Trump's name represents a high-risk zone bordering on financial catastrophe for the unprepared investor. My analysis shows that the president's prominent name is used here as a powerful magnet to attract retail capital, followed by a classic pump-and-dump scheme. Early participants and insiders lock in profits, while ordinary buyers are left with devalued assets, losing between 90% and 99% of their investments.
Meme Coin TRUMP
The token was launched on the Solana blockchain a few days before the inauguration in January 2025. The dynamics of its value are a textbook example of manipulation. The peak price reached $75.35, after which the asset collapsed to current levels around $1.7. The scale of the decline from the all-time high is a staggering 97.7%. This is not just a correction, but a complete collapse experienced by thousands of retail investors, many of whom were supporters of the MAGA movement.
Meme Coin MELANIA
The token appeared on the market immediately after the release of TRUMP and repeated its 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 absolutely 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 the pockets of retail buyers before a massive coin dump.
Trump Media & Technology Group (DJT)
The company's shares went public through a merger with a SPAC in March 2024. Shortly after the stock market debut, the share price traded above $79. However, the real business failed to live up to the political hype, and the price 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 figures, making its valuation purely speculative.
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, was listed on the Nasdaq exchange, and holds thousands of bitcoins on its balance sheet. However, a 52-week high of $14.52 has given way to a current price of around $0.74 — a drop of 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
This pattern of behavior is not new. The famous 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. Later, in 2016, a high-profile fraud lawsuit over Trump University 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 assessment: Investing in projects associated with the Trump brand is a deliberate choice in favor of extremely high risk with minimal chances of long-term success. History and current cases relentlessly show that the retail investor here acts not as a partner, but as liquidity for insiders to exit. Calling such investments financial "suicide" is not an emotional exaggeration, but a dry statement of market reality.