An investigation found repeated crypto launches tied to the Trump family that enriched insiders while many retail investors lost money. The pattern raises ethical concerns.

January 2025 brought real cryptocurrency excitement: Donald J. Trump was preparing to return to the White House. And when Fatime Elrgdawy, a friend, learned of an online message from the future president-elect promoting the launch of his own cryptocurrency – “GET YOUR $TRUMP NOW” – she thought, “Oh my God, this is brilliant.”

If Trump was involved in this project, she believed it must be a legitimate investment.

A 29-year-old software project engineer from Santa Barbara, California, invested savings of $2000 in the meme coin $TRUMP – purely speculative token whose value largely depends on discussions on social media. All that remained was to wait for the price to rise.

Instead the price plummeted. By the end of May her $TRUMP investment was worth less than $120. Meanwhile members of the Trump family earned hundreds of millions of dollars from selling the tokens, while themselves hardly investing any money into the project.

The meme coin $TRUMP is one of four Trump family crypto projects that became a financial jackpot for the family and a very poor investment for buyers like Elrgdawy. Although these projects differ in scale and structure, they follow the same “playbook”: the family takes on a minimal upfront stake, family members – notably Eric Trump and Donald Trump Jr. – stir interest, investors pour in money in massive volumes, and buyers suffer significant losses after asset prices fall.

The investigation showed that the Trump family used this pattern to extract at least $2.3 billion in profits from investors since Trump’s return to the presidency. On the other hand, investors – more than a million people, including retail cryptocurrency buyers and related financial instruments – in the same period suffered losses of more than $2.3 billion by the end of April. This figure includes paper losses from unrealized assets.

Among the projects considered in the investigation was World Liberty Financial, the family’s main crypto project. It became the primary source of profit through the sale of governance tokens under the slogan “build and democratize a new financial system.” The tokens grant voting rights in some governance matters, but their price sharply declined.

Also among the projects were ALT5 Sigma, later known as AI Financial Corp, and previously promoted as a way to access crypto tokens through company shares, whose price growth later diminished. And of course, the $TRUMP meme coin – another example of a meme coin that declined after a brief peak of popularity.

Preliminary research materials directly mention that almost all of the Trump family’s investment assets brought them profit, while investors suffered large losses. The overall figures indicate: the family’s profits exceeded $2.3 billion, while investor losses were more than a comparable amount, in particular due to token volatility and other factors.

This approach by the family used broad linear thinking: name and reputation, amplified media flow, and a penchant for new financial instruments with minimal personal risk. At the same time, regulators had warned about crypto risks for a long time, but after Trump’s return to office that warning somewhat receded – especially since many experts consider such development ethically questionable but legally permissible within the bounds of American law.

In a corresponding statement, a White House spokesperson noted that “there were no conflicts of interest between the President, his family, and their actions” and that the administration puts the interests of the American people first. Other family members did not respond to requests for comment.

Regret, Anger, and Investor Disappointment

Most of the investors surveyed during the study said they were aware of Donald Trump’s reputation, his bankruptcies, and other entrepreneurial risks, but still saw in the president’s elevated position an opportunity to profit. Many admitted they had not conducted proper due diligence. Some still believe Mr. Trump will be beneficial, others express disappointment and shame for their choice.

“Here’s how one investor put it: ‘After everything that’s happened, the most likely thing left is the hope that something useful will come back.’”

– Investor (anonymous, USA)

One investor from Indiana, who spent $40,000 on ALT5 Sigma, says his shares fell by more than 70%, but he holds the position because he believes in the asset’s potential value reflection and in a price recovery. Other participants say they hold out hope that Trump will resolve the problem, or that this will serve as a lesson for future investors.

Another story concerns how some investors witnessed “meme coins” – in most cases their value rises due to popularity and publicity, but the price drop after the peak usually happens quickly, leaving many with multi-billion losses. Estimates place the total sums involved in this sector at hundreds of millions of dollars in losses for small investors.

While investors included both private individuals and those investing through brokerage or corporate channels, the overall picture shows a significant gap between the family’s profits and the losses of most buyers. Authoritative experts note that such activity may be ethically questionable, but outside the regulatory framework it is permitted.

In response to requests for comment, a family representative said they do not fall under the general regulatory risks of the crypto market, and that they will continue to develop their platforms in accordance with legislative requirements.

“Licensing agreements are the best of all deals, because the risk is absent. Licensing agreements are better, because you don’t need to invest capital.”

– Donald J. Trump

Legislative and regulatory questions remain timely: experts emphasize that the crypto sector remains unstable and prone to fraudulent schemes, despite some regulatory progress in other countries. In turn, economists and business experts note that investors should assess risks and avoid excessive trust in famous names in attempts to get rich quickly.

Other expert statements emphasize that regardless of how one interprets the legality of the family’s actions, what matters is maintaining transparency and a careful approach to investors to prevent repeating such stories in the future. In any case, high-profile projects bearing the name of famous public figures require strengthened regulatory oversight and a responsible approach to promoting and selling financial products.

Ultimately, the materials presented underscore the main takeaway: using famous names to promote crypto assets can bring significant profits to well-known parties, but for most investors it often ends in losses. In light of this, it’s worth raising awareness and exercising caution, as the market remains highly volatile and prone to speculative impulses.

In conclusion, it is worth noting that protecting investors and ethical practices in financial projects remain priorities for regulators and market players. All participants – both investors and company leaders – must strictly adhere to principles of transparency and accountability so that future financial decisions are more predictable and safer.