How Trump Family-Linked Projects Became 'Duds' in the Crypto Market

Source: Exame
Original Title: How Projects Linked to the Trump Family Became ‘Duds’ in the Crypto Market
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The implosion of American Bitcoin Corp. on Tuesday, the 2nd, became a snapshot of the delicate moment in the crypto market. Minutes after the opening on Wall Street, the mining company’s shares dropped by more than 50%, in a movement so abrupt that it quickly turned the company into the symbol of the widespread slump hitting the sector at the end of 2025.

Although Bitcoin has fallen about 25% in the last two months, projects linked to the Trump family have been even more affected. World Liberty Financial, co-founded by U.S. President Donald Trump, saw the WLFI token plummet 51% since its September peak, while Alt5 Sigma, promoted by the president’s children, lost about 75% and is still facing legal issues.

Memecoins bearing the names of Donald and Melania Trump have also collapsed, by 90% and 99%, respectively, since their January highs. In the last five days, American Bitcoin has accumulated a 45% drop.

Reversal

The cryptoasset fortune amassed by the Trump family has shrunk, and the public image of the president, who turned Bitcoin into a political thermometer for his second term, has been tarnished. What was once seen as a Trump premium in the digital market has started to turn into a Trump burden, exposing the fragility of assets tied to narratives of influence and popularity.

Eric Trump, co-founder of American Bitcoin, used social media to play down the impact, attributing the losses to the end of the lockup period for shares. “Our fundamentals are virtually unrivaled,” he declared, promising to lead the sector.

Volatile and Contradictory

Despite the plunge, the market remains volatile and contradictory. On Wednesday, American Bitcoin rose more than 9%. Meanwhile, Bitcoin had a more modest gain of 1.7%.

At the beginning of the year, Trump’s explicit support for cryptocurrencies seemed able to pull the sector out of the classic cycle of euphoria and collapse. The enthusiasm was not just political. Investors wanting to show support for the president bought tokens linked to him, helping to drive prices and business. Shares of Gryphon Digital rose 173% when the company announced its merger with American Bitcoin in May, and gained another 16% on the first trading day after the merger.

Government policies also helped, with proposals to regulate stablecoins pegged to the dollar and bring the topic into mainstream finance. But signs of fatigue began to pile up in the second half. Tariffs on Chinese products, allegations against suppliers, and criminal investigations involving associated companies undermined investor confidence.

Loss of More Than $1 Billion

The recent collapse has wiped out more than $1 billion of the wealth accumulated by the Trump family during the crypto boom. Retail investors who bought near the peak are now suffering the biggest losses, some with declines of over 40% in their portfolios.