The cryptocurrency ecosystem linked to the Trump family faced its most dramatic collapse to date, with billions of dollars in market value erased within minutes. A sudden and steep fall in American Bitcoin Corp triggered a wider meltdown across Trump-related tokens, meme coins, and financial projects—unsettling investors across global markets.
A 30-Minute Market Shock
Trading at Wall Street opened normally at 9:30 AM, but within one minute, panic spread. At 9:31 AM, the stock of American Bitcoin Corp—co-founded by Eric Trump—fell 35% instantly. Five minutes later, losses deepened to 40%, and by 10:00 AM, the stock had crashed over 50%.
In just 30 minutes, the company experienced its largest-ever crash, shaking confidence in its entire digital ecosystem.
Collapse Across Trump-Linked Crypto Projects
The crash did not remain limited to one company. In the past year, the Trump family has actively promoted various crypto ventures. But after the latest selloff, several of these projects suffered severe declines:
- American Bitcoin Corp: Down 70–75% from its peak.
- World Liberty Financial (WLFI): Fell 52% from the top.
- Alt5 Sigma: Crashed 75% and now faces legal complications.
- Meme coins linked to Trump and Melania: Down 90% to 99%.
The collapse wiped out billions of dollars, hitting retail investors the hardest, especially those who bought during the hype around Trump’s political rise.
From “Trump Premium” to “Trump Drag”
For months, Trump’s political influence had boosted crypto sentiment, with analysts calling the effect the “Trump Premium.” Many believed his support would bring legitimacy and momentum to the digital asset space.
But analysts now say the opposite is happening. The term “Trump Drag” has emerged, indicating that association with Trump is pulling related crypto projects downward.
American University professor Hilary Allen described it as a double-edged sword: “The projects he backed were the first ones to collapse.”
Legal Issues Add More Pressure
The market crash was intensified by several regulatory and legal concerns:
- American Bitcoin faced scrutiny over the use of Chinese-made mining machines, raising national security concerns in the U.S.
- A subsidiary of Alt5 Sigma became involved in a criminal investigation in Rwanda, damaging investor trust.
- New U.S. tariffs on China added further uncertainty for crypto miners and technology suppliers.
These issues combined to push Trump-linked crypto ventures into deeper trouble.
Retail Investors Take the Hardest Hit
According to Bloomberg, Trump family crypto projects have collectively lost more than $1 billion in value since October. While the family entered early and remains profitable, late-stage investors are bearing the losses.
Bitcoin Rises but Trust in Trump Crypto Falls
Strikingly, while American Bitcoin Corp was collapsing, the global crypto market showed strength. Bitcoin rose 5.5% on the same day, proving that the selloff was isolated to Trump-linked assets.
This divergence revealed a deeper issue—investor confidence in Trump-endorsed digital projects has weakened drastically.
Key Takeaways
- American Bitcoin Corp crashed more than 50% in minutes, triggering a broader collapse.
- Multiple Trump-related crypto projects have lost **50–99%** of their value.
- Legal investigations and national security concerns worsened the selloff.
- Retail investors, especially newcomers, suffered the biggest losses.
- Bitcoin remained strong, showing the problem is specific to Trump-linked assets.
Conclusion
The Trump family’s crypto network, once marketed as a powerful alternative system, is now facing its most severe crisis. With legal issues, regulatory pressure, and market distrust piling up, the so-called Trump Crypto Empire is struggling to regain stability.
For investors, the events underline a simple reality celebrity influence cannot protect digital assets from market risks, regulatory challenges, or structural weaknesses.
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