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Trump Family Faces Heavy Crypto Losses as Market Downturn Deepens
Source: CoinEdition Original Title: Trump Family Faces Heavy Crypto Losses as Market Downturn Deepens Original Link:
Token Ventures Hit by Sharp Repricing
Trump-linked tokens suffered notable declines over recent months. The family’s World Liberty Financial venture holds a large reserve of WLFI tokens. WLFI traded near 26 cents in early September but now trades near 15 cents. Consequently, the family’s locked holdings fell to roughly $3.15 billion from an earlier estimate near $6 billion.
However, World Liberty still collected significant cash from earlier token sales. The firm captured nearly $900 million before and during its deal with a major exchange partner, which purchased tokens at higher valuations. Bloomberg estimated that the family received the majority share of those proceeds.
Trump’s memecoin also struggled. The asset has lost about a quarter of its value since August. Analysts tracking blockchain data reported that wallets tied to insiders unlocked nearly 90 million new tokens since July.
Hence, more supply entered the market while prices drifted lower. The family’s portion of those unlocked tokens is estimated near 40 percent, which added roughly $220 million in value despite the price drop.
Corporate Bets Struggle as Market Weakens
Trump Media also faced deep repercussions. The company leaned heavily into crypto this year as it expanded its platform. The firm accumulated about 11,500 Bitcoins at an average price near $115,000. The investment currently shows heavy losses because Bitcoin trades at $86,000 level.
Moreover, the company purchased a large stack of CRO tokens, which lost almost half of their value since September. Trump Media shares reflect those setbacks. The stock trades near record lows after sliding roughly 66 percent over the past year.
American Bitcoin, a mining venture linked to Eric Trump, also endured sharp declines. Shares traded above $9 in early September before trending below half that level. The move erased more than $300 million from Eric Trump’s peak stake. Additionally, early public investors in the project recorded steep losses during the same period.
The latest market slump has delivered steep losses to Trump family’s digital-asset empire. The sector’s sharp decline has eroded a significant part of their recently built wealth, with combined crypto holdings sliding from about $7.7 billion in early September to nearly $6.7 billion. The downturn reflects falling token prices, declining equity valuations, and increased exposure to volatile projects.