In January 2025, as crypto fever swept the nation and Donald J. Trump prepared to return to the White House, Fatime Elrgdawy's friend shared an online message from the president-elect promoting his own crypto coin: "GET YOUR $TRUMP NOW." The 29-year-old software project engineer from Santa Barbara, California, invested $2,000 of her savings into the $TRUMP meme coin, believing that Trump's backing guaranteed a legitimate investment. However, the token's value plummeted, and by the end of May, her holding was worth less than $120. Meanwhile, the Trump family pocketed hundreds of millions of dollars from token sales with minimal personal financial risk.
The Trump Family Crypto Playbook
The $TRUMP meme coin is one of four Trump family crypto projects that have yielded massive profits for the Trumps while causing significant losses for retail investors. According to a Reuters examination, the Trump family has generated at least $2.3 billion in profit from these ventures since Trump retook the presidency. In contrast, over a million investors suffered net losses totaling $2.3 billion as of the end of April. The analysis, based on blockchain records, corporate filings, and interviews, reveals a consistent pattern: the Trumps risked little upfront, hyped the ventures through social media and public appearances, and raked in money as investors piled in, only for prices to later collapse.
World Liberty Financial
The flagship venture, World Liberty Financial, brought the family over $1.4 billion from sales of governance tokens. The tokens, which promised to democratize finance, have crashed in value. Investors who bought tokens directly or on exchanges lost an estimated $674 million. The company locked most tokens until 2030, preventing holders from selling, which has left many frustrated. Spokesman David Wachsman said the tokens are not an investment product and emphasized the company's long-term view.
The $TRUMP Meme Coin
Launched three days before Trump's second inauguration, the $TRUMP meme coin generated about $616 million for the Trump family while buyers lost over $700 million. The coin's price surged to $75.35 before crashing 97% from its peak. Academic studies show such tokens typically spike and then collapse, with most buyers losing money.
ALT5 Sigma and American Bitcoin
Two publicly listed firms, ALT5 Sigma (now AI Financial Corp) and American Bitcoin, also followed the same pattern. ALT5 Sigma's stock fell from $9 to 75 cents, causing $675 million in investor losses. American Bitcoin shares dropped from $11 to $1.15, with outside investors losing over $200 million. In both cases, the Trumps profited through revenue-sharing deals and equity stakes without significant personal investment.
Investor Reactions
Many investors expressed regret, anger, and embarrassment. Some still hope Trump will make things right, while others feel scammed. A Texas businessman who lost $800 on American Bitcoin said he doesn't blame Trump, attributing losses to the broader crypto downturn. However, ethics experts say the family's enrichment from an industry the president regulates represents an unprecedented conflict of interest, though it remains legal.
White House spokesperson Anna Kelly stated that all actions by President Trump are in the best interest of the American people and that neither the president nor his family has engaged in conflicts of interest. The Trump family's business model, as Trump himself once said, relies on licensing deals with no risk, leveraging their name rather than capital.
