Trump's Crypto Empire Unravels: Billions Lost by Retail Investors
Donald Trump's foray into cryptocurrencies has left retail investors reeling, while his family's wealth has soared. According to estimates, Trump and his children increased their fortunes by at least $2.3 billion through various crypto projects during his presidency.
The collapse of the meme coin TRUMP is a stark example of this phenomenon. With a peak value of over $10 billion, it crashed within hours, leaving almost 1 million buyers with estimated losses of $3.81 billion, according to an analysis by Nansen cited in US media.
Despite the catastrophic collapse, Trump's business continued to reap benefits from TRUMP-related activity. The company received revenue whenever tokens changed hands, and exclusive dinners for investors were held to promote the asset. Additionally, a video game based on Trump's life used the asset, generating hundreds of millions of dollars in royalties and licensing fees.
The contrast between Trump's profiteering and retail investors' losses is striking. While Trump reported over $520 million from cryptocurrency sales and another $250 million from selling company shares, his financial disclosure listed a staggering $1.4 billion in crypto-related income during the first year of his second term.