New Delhi. The decline in cryptocurrency for some time has also dealt a blow to the family of US President Donald Trump. The Trump family is a big advocate of crypto. Now the same crypto market is standing as a bitter lesson in front of him and his supporters. The crypto crash has given such a blow to the earnings of the Trump family that a large part of their declared wealth has been lost in a short time. According to the Bloomberg Billionaires Index, the total wealth of the family was $ 7.7 billion at the beginning of September, which has now come down to $ 6.7 billion. That means a loss of approximately 1 billion dollars. The Trump family has suffered a loss of only one billion dollars. This crash has caused a loss of more than 1 trillion dollars to investors all over the world.
Since August, the price of meme coins associated with Trump’s name has fallen by approximately 25%. The situation is that whoever had bought this Meemcoin a week after its launch has now lost almost his entire investment. The value of the Bitcoin mining company in which Donald Trump’s son Eric Trump has a stake has fallen to almost half its peak. At the same time, shares of Trump’s social media company, Trump Media and Technology Group, which invested heavily in Bitcoin this year, are also floating around their record low.
Eric is a staunch supporter of crypto
According to a Bloomberg report, Eric Trump is a staunch supporter of cryptocurrency. He has been continuously telling his supporters that “a decline is never bad, but a great buying opportunity.” According to him, “Only those who welcome ups and downs become real winners.” But his advice has now become a problem for investors.
Trump family is playing in crypto in many ways
However, the Trump family does not just bet on prices. Using their brand in the crypto industry, they have created many complex business models that include creating tokens, launching them in the market, and earning profits from their sales. They get double benefit from this. If the value of the token increases, the wealth also increases. And even if the price falls, he still gets a huge cash flow from the sale of tokens. Jim Angel, a finance professor at Georgetown University, says, “Retail investors can only speculate, but Trump himself creates and sells tokens and earns money from every transaction.”
sinking boat of trump media
Trump Media and Technology Group, which runs Truth Social, made a big bet in the world of crypto at the wrong time. The company had invested approximately $2 billion in Bitcoin and its related securities. At that time the price of Bitcoin was around $115,000. Now the price is down about 25%, due to which the company went into loss.
The company had also purchased a large quantity of CRO tokens issued by Singapore’s Crypto.com, the price of which has now halved. This also had a direct impact on Trump’s own stake, the value of which has declined by about $800 million since September. Despite this, the company is trying to create new crypto-based businesses like Truth Predict, where people will be able to bet on sports and politics.
World Liberty Financial
World Liberty Financial, the biggest crypto dream of the Trump family, had at one time reached a value of about $ 6 billion. It also had its own WLFI token, the price of which has now fallen from 26 cents to 15 cents. The total value of tokens is now approximately $3.15 billion. This asset remains on paper only, as these tokens cannot be traded at present. Yet the family made huge profits as it received $750 million in cash by selling WLFI tokens to Alt5 Sigma Corp.
Loss from American Bitcoin Corp also
Eric Trump has a 7.5% stake in American Bitcoin Corp. This company was formed in partnership with Hut 8 Corp. The company’s shares reached $9.31 in September—at which time Eric’s stake was worth $630 million. Now the shares have fallen by more than half, causing a loss of up to $330 million to the Trump family.
