Eric Trump and Donald Trump Jr. earned significant profits from a cryptocurrency partnership with Alt5 Sigma while investors suffered substantial losses [1, 2].
The disparity between the family's gains and the investors' losses raises questions about the stability and transparency of celebrity-backed digital asset ventures.
The partnership aimed to provide investors with easier access to a cryptocurrency backed by the Trump family [1]. The venture was celebrated at the Nasdaq stock exchange in New York in late 2025 [1]. However, the financial success of the project was not shared by those who invested in the publicly traded company.
Reports vary on the exact amount the Trump family earned from the deal. Some sources said the family made about $500 million [1, 2], while a Reuters report cited by Yahoo Finance said the family added $2.3 billion [3] to their fortune.
While the Trump family profited, Alt5 Sigma's share price fell more than 90 percent [1]. The company eventually issued a warning that it may not stay in business [1]. This collapse occurred in less than 10 months following the initial launch [1].
Regarding the impact on the public, a Reuters report said, "The Trump family added $2.3 billion to their fortune from crypto, while their investors took a $2.3 billion hit" [3]. Another report said that investors saw steep losses while the Trump family made $500 million from the crypto coin deal [2].
The volatility of the venture highlights the risk associated with the company's business model, a model that saw the founders profit while the equity value for shareholders evaporated [1].
“The Trump family added $2.3 billion to their fortune from crypto, while their investors took a $2.3 billion hit.”
This situation underscores the inherent risk in 'celebrity-backed' cryptocurrency projects, where the promotional figures often secure guaranteed payouts or equity that they can liquidate before the general public realizes the asset's instability. The rapid decline of Alt5 Sigma—from a Nasdaq celebration to a business-risk warning in under 10 months—illustrates the extreme volatility of the crypto-equity market.
