Last week, I read in the Wall Street Journal that Mr Trump increased his fortune by $1.4B due to crypto deals. His backers did not do as well. 85% of Trump token buyers are now underwater. Also, if you invested $1,000 on January 19, ‘25 in Trump meme coins your investment is now worth $22.61, a loss of 97.7 percent.

By the way, January 19th, 2025, was the day before Trump’s inauguration. 

 It is no skin off my back. I am a fairly conservative investor, and crypto, whether Bitcoin, or a Trump meme coin ($TRUMP) is not my cup of tea. Still, I can’t help but wonder what those investors are now thinking. Some invested only a few thousand dollars. Others invested over a million dollars. And it has almost all … vanished.

 My Republican friends will no doubt note that the crypto market in general has dropped, which is true. But nowhere has the drop been this dramatic. As an example, Bitcoin, something of a “blue-chip” in the crypto industry, has lost just over 30% in the same period.

 30% vs 97.7% loss in value. Well, that’s interesting.

 According to the WSJ, “Trump, who in 2021 described bitcoin as a “scam” threatening the U.S. dollar, now leads a White House that has pledged to make America the crypto capital of the world.”

 Trump’s eye-popping increase in net worth has drawn some gasps from around the country and the world. In response to questions about his growth in the crypto industry, White House spokeswoman Anna Kelly said, “Neither the President nor his family has ever engaged—or will ever engage—in conflicts of interest. All actions by President Trump and his administration are taken in the best interest of the American people.”

 It is difficult to reconcile Ms. Kelly’s statement with the reality of those “American people” who have watched 97% of their investment in these Trump family-backed assets evaporate.

 There are lots of ways to make and lose money in this world. If you had just invested in a S&P 500 tracking mutual fund, you would have done well. Since January 19th, 2025, the S&P 500 has increased by over 24%. Your $1,000 investment is now worth $1,240 (not including reinvested dividends). 

 $1,240 vs. $22.61. In 2026, math still doesn’t lie.

 Look, if you are a Trump supporter, that’s great. I may disagree with you, but it’s your right as an American to support who you want in politics. Good on you.

 But from a financial perspective? Maybe get your advice elsewhere. As the history of his previous business ventures—from steaks to universities—has shown, the outcome for investors is rarely the same as the outcome for the brand.

 Addendum –

 

 

 

 

 

 

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One thought on “Crypto”

  1. How ironic, Max!  The daily Bible study from our church focused on Ezekiel.  The scripture passage started with this: Ezekiel 34

    1 The Lord’s word came to me: 2 Human one, prophesy against Israel’s shepherds. Prophesy and say to them, The Lord God proclaims to the shepherds: Doom to Israel’s shepherds who tended themselves! Shouldn’t shepherds tend the flock? 3 You drink the milk, you wear the wool, and you slaughter the fat animals, but you don’t tend the flock. 4 You don’t strengthen the weak, heal the sick, bind up the injured, bring back the strays, or seek out the lost; but instead you use force to rule them with injustice. Thanks SO much for the references to the WSJ and Yahoo Finance articles.  I was able to use the Yahoo article in a posting today. Best regards, Bob

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