The "crypto disaster" has caused the Trump family to suffer "heavy losses," and the second son claims "this is a great buying opportunity."

The massive sell-off in the cryptocurrency market is eroding the wealth of the Trump family. Since early September, the wealth of this first family has shrunk from $7.7 billion to about $6.7 billion, with the decline primarily related to its expanding cryptocurrency investment portfolio.

According to media reports on Monday, the cryptocurrency assets under the Trump family's name have suffered a comprehensive blow. The meme coin associated with the Trump brand has dropped about a quarter since August, and the value of Eric Trump's shares in a Bitcoin mining company has halved from its peak, while the stock price of the social media company under Trump hovers near historical lows. This round of selling is part of a broader collapse in the digital asset market, which has evaporated over $1 trillion.

In the face of the market crash, Eric Trump remains unfazed. In a statement to the media, he said:

This is a great buying opportunity, and those who buy in during the downturn and accept volatility will be the ultimate winners. I have never been more optimistic about the future of cryptocurrency and the modernization of the financial system.

Despite the plummeting value of the tokens and shares in crypto-related companies held by the Trump family, they have established buffer mechanisms in these projects. For example, in the jointly founded crypto platform World Liberty Financial, they still have the right to receive a portion of the proceeds from token sales regardless of how the token price fluctuates.

Trump Media: $800 Million Loss

Trump Media & Technology Group Corp.—the parent company of the Truth Social platform—saw its stock price hit a historical low on Wednesday. The value of the president's holdings in the company has dropped by about $800 million since September. He is the largest shareholder, with shares held in a trust overseen by his eldest son, Donald Trump Jr.

This loss-making company has made significant bets on cryptocurrency this year. According to a statement from July, Trump Media invested about $2 billion in Bitcoin and related securities (including options). The company purchased approximately 11,500 Bitcoins at about $115,000 each, and this position has incurred a cumulative loss of about 25%.

The company has also hoarded a niche token called CRO, issued by the Singapore crypto exchange Crypto.com. The CRO tokens held by Trump Media were valued at about $147 million at the end of September, but the value of CRO has since halved.

World Liberty Financial: Nearly $3 Billion Paper Loss

The Trump family's flagship crypto project, World Liberty Financial, issued its own branded token WLFI. The price of this token has plummeted from 26 cents in early September to about 15 cents.

The WLFI tokens held by the Trump family had a paper value of nearly $6 billion at their peak, but are now worth about $3.15 billion. However, these tokens are currently locked and cannot be traded, so they are not included in the family's valuation in the Bloomberg Billionaires Index In August of this year, the company seized an excellent opportunity to sell part of its tokens to a small publicly listed company named Alt5 Sigma Corp., obtaining $750 million in cash and equity. According to media calculations, the Trump family received about 75% of the proceeds from the token sale, with the Alt5 transaction alone bringing them approximately $500 million. Combined with previous token sales, the family's total profit amounts to about $900 million.

However, investors in Alt5 have not been so fortunate. Since the announcement of the transaction, Alt5's stock price has plummeted by about 75%. The value of the Alt5 shares held by the Trump family through World Liberty has decreased by approximately $220 million.

A spokesperson for World Liberty Financial stated in a press release, "Cryptocurrency will exist in the long term. World Liberty Financial has a long-term belief in the rapidly maturing technology supporting digital assets, and we believe this will fundamentally improve financial services."

American Bitcoin: At least $330 million loss

About two months after Trump's inauguration, his family ventured into another new cryptocurrency project. Eric Trump and Donald Trump Jr. collaborated with the cryptocurrency company Hut 8 Corp. to conduct a series of complex transactions, where Hut 8 provided its own Bitcoin mining equipment in exchange for a majority stake in the new company, American Bitcoin Corp.

Eric Trump owns approximately 7.5% of American Bitcoin, which is now listed on NASDAQ under the ticker symbol ABTC. Donald Trump Jr. holds a smaller, undisclosed stake.

The price of ABTC peaked at $9.31 in early September, making Eric Trump's stake worth about $630 million. Since then, the stock price has fallen by more than half, causing the family's wealth to evaporate by over $300 million. Investors who bought ABTC when it was publicly traded will face a 45% loss.

Trump Meme Coin: Nearly $120 million loss, $220 million token unlock

Since the announcement during the presidential inauguration weekend, Trump's meme coin has significantly declined. However, since the end of August, its value has evaporated by about 25%.

The scale of the family's holdings in this coin is not transparent. Risk modeling company Gauntlet found that the digital wallets associated with the creation of the meme coin held nearly 17 million tokens a few months after launch, with another 17 million transferred to cryptocurrency exchanges. Additionally, 90 million tokens were unlocked in July. The Bloomberg Billionaires Index attributes 40% of the total to the Trump family based on their ownership in World Liberty Financial.

At current prices, these tokens are valued at approximately $310 million, having dropped by about $117 million since the end of August However, according to the calculation of the index, the tokens held by the Trump family have significantly increased. Some tokens held by insiders and token creators have been "locked" and are not tradable, but will be unlocked over three years.

According to data from cryptocurrency research firm Messari, since the unlocking event in July, insiders have unlocked nearly 90 million Trump tokens, with Bloomberg's wealth index attributing about 40% of these to the Trump family. These additional tokens are valued at approximately $220 million, meaning the family's total holdings have actually increased in value. It is currently unclear whether the Trump family has sold any tokens since July.

Jim Angel, a finance professor at Georgetown University, stated, "Retail investors can only speculate. The Trump family can not only speculate but also create tokens, sell them, and profit from these transactions."