Trump family fortune suffers massive blow after cryptocurrency investments.$BTC
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The Trump family's financial empire has taken a significant hit, with recent ventures into cryptocurrency resulting in a staggering billion-dollar loss.
Recent analysis reveals that the Trump family fortune has lost a billion dollars due to cryptocurrency losses. A considerable drop occurred over the last few months, as reported by Bloomberg News.
The outlet discovered that President Donald Trump and his family have suffered enormous losses after venturing into meme coins and cryptocurrency, causing the family's wealth to plummet from an estimated $7.7 billion in early September to $6.7 billion.
The losses include a Trump-branded memecoin that has lost around one quarter of its value since it began to decline in August, Eric Trump’s Bitcoin mining venture dropping roughly half its value, and shares in Trump Media & Technology Group (TMTG) falling lower than they have ever been after the company invested heavily in crypto. TMTG also owns the president's social media platform, Truth Social.
Shares in TMTG were at an all-time low last Wednesday, coming months after the company spent around $2 billion on Bitcoin and other securities, according to Bloomberg. Meanwhile, Trump’s stake in TMTG has crashed by roughly $800 million since September.
The company also invested heavily in a token issued by the Singapore-based cryptocurrency exchange Crypto.com, known as CRO. In September, TMTG’s investment in the CRO coin was worth around $147 million, but it's now worth about half that.
To give an idea of how significant some of the other losses are, investors who bought Trump’s meme coin at its peak in January would have lost almost the entire value of their investment by November of this year.
The cryptocurrency market has suffered a significant downturn recently, which can account for a substantial portion of the Trump family’s losses. The market recently lost around $1 trillion in value, and Bitcoin has shed about a quarter of its value over the past four weeks, the most for a single month since June 2022, according to Bloomberg.
Bitcoin, which is the world’s most valuable cryptocurrency, fell below $82,000 for the first time since mid-April last week.
Despite the recently reported loss, however, Trump and his family’s move into cryptocurrency and NFTs has still paid off overall, and it has boosted their wealth by billions. So much so that The Wall Street Journal estimated in September that cryptocurrency had overtaken the Trump family’s real estate portfolio as their most valuable asset.
Trump-backed crypto venture, World Liberty Financial, began trading on multiple exchanges recently and ended up earning the family around $5 billion.
However, Bloomberg reports that the value of the Trump family’s holdings of WLFI tokens has decreased from $6 billion to approximately $3.15 billion. The drop is not included in the overall wealth decline of the family, however, as the coins are locked and cannot be traded.
The reported losses have so far been downplayed by Eric Trump, saying the nosedive represents a “great buying opportunity” for investors.
