President Trump Has Endorsed 8 Different Cryptocurrencies Since Taking Office in 2025. On Average, They Are Down 60%, So Buyer Beware.

President Donald Trump's cryptocurrency endorsements haven't exactly been great for investors. According to an August analysis by BeInCrypto, eight cryptocurrency endorsements or promotional events involving Trump since he returned to office in January 2025 were followed by an average price decline of about 60%.

To be clear, cryptocurrencies mentioned by Trump surged an average of 31% within 24 hours of his endorsements. But those gains didn't last. Within 30 days, all eight events had produced negative returns relative to their pre-endorsement prices. Now, another cryptocurrency is attracting attention after comments from the president: Hyperliquid (HYPE +0.73%). Not surprisingly, a lot of crypto investors are a bit nervous.

Trump's cryptocurrency endorsements have produced some ugly results

One specific example came on March 2, 2025, when Trump announced plans for a U.S. cryptocurrency reserve that would include XRP (XRP +0.61%), Solana (SOL -1.67%), and Cardano (ADA -0.92%). The market reacted almost immediately.

Cardano surged about 75% within hours, while XRP climbed 32% and Solana gained 27%. The announcement also helped generate more than $329 billion in additional cryptocurrency market value in three hours. But the excitement didn't last.

Four days later, the administration issued an executive order establishing a Strategic Bitcoin Reserve and a separate U.S. Digital Asset Stockpile. But the order didn't authorize the government to begin purchasing XRP, Solana, or Cardano. By Aug. 20, Cardano was trading about 73% below its price immediately before Trump's March 2025 announcement.

Trump's own Official Trump ($TRUMP) cryptocurrency also experienced some dramatic swings. In April 2025, promoters offered the token's 220 largest qualifying holders a private dinner with the president. The announcement attracted substantial buying interest, temporarily sending the cryptocurrency higher. But those gains eventually evaporated, too. As reported by BeInCrypto, nearly 1 million TRUMP wallets collectively lost about $3.81 billion.

Of course, Trump isn't necessarily responsible for those losses. Cryptocurrency prices are influenced by speculation, liquidity, broader market conditions, and investor sentiment. Still, the numbers illustrate the risks of buying cryptocurrencies primarily because a prominent public figure mentions them.

Could Hyperliquid be different?

On Aug. 19, Trump mentioned Hyperliquid during a White House gathering attended by cryptocurrency executives and financial regulators. He said Commodity Futures Trading Commission Chairman Michael Selig was working to bring the Hyperliquid trading platform into the U.S. in a legally compliant manner.

The crypto jumped about 14% within two hours, climbing from $62.23 to nearly $71. By the following day, it was trading around $71.45, representing a gain of more than 21% over 24 hours.

But Hyperliquid isn't just another cryptocurrency hoping to benefit from presidential attention. The platform specializes in decentralized perpetual futures, financial contracts that let traders speculate on asset prices without owning the underlying assets. These products have become increasingly popular among cryptocurrency traders, although regulatory restrictions have limited their availability in the U.S. Allowing Hyperliquid to operate legally in the U.S. could potentially expand its market and attract additional trading activity. There's also evidence of growing institutional interest.

On Oct. 19, cryptocurrency investment firm Multicoin Capital disclosed that Hyperliquid's token was its largest hedge fund holding. And in Q3, open interest on Hyperliquid's platform nearly doubled to about $12.3 billion. That's encouraging, although you should remember that trading activity doesn't necessarily translate into higher token prices.

Should you buy the HYPE?

Hyperliquid has a functioning trading platform, expanding activity, and a mechanism that uses trading fees to purchase HYPE tokens, and 99% of the protocol's fees are allocated to its Assistance Fund, which purchases tokens on the open market. That's a potentially attractive arrangement for token holders. But there are risks.

Hyperliquid has a maximum supply of 1 billion tokens, with a substantial portion still outside circulation. Future token releases could create additional selling pressure. Regulatory approval is also far from guaranteed. And even if Hyperliquid eventually gains access to the U.S. market, there's no assurance its token price will rise.

To be clear, I wouldn't dismiss Hyperliquid simply because Trump mentioned it. The underlying business has legitimate growth potential. But I certainly wouldn't buy it because of a presidential endorsement, either.

Indeed, Hyperliquid could ultimately prove to be an exception. But until there's more concrete regulatory progress, I'd be cautious about buying it based on political enthusiasm alone. A cryptocurrency can have a promising future and still be a terrible investment if you pay too much for it.