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Recently, Trump issued a Memecoin and caused a global sensation. There are many different opinions, but some media, like weather forecasts, not only telling you that it has risen and fallen, but how many people have lost their positions.In fact, most people actually think too simply about this matter, and there may be deeper intentions behind it.
Today we will analyze the logic, motivation and possible impact of Trump’s issuance of coins from multiple perspectives…
01What is Trump doing when he posts Memecoin?
In recent years, Memecoin, published through Trump’s social account and led by the affiliated companies of the family group behind him, not only has TRUMP for the past two days, but also has the personal image NFT on the Ethereum chain and the WLFI project based on Ethereum platform., Bitcoin inscription NFT, etc.According to Trump’s friendly “commitment” to innovative industries such as encryption during the campaign, these seemingly unrelated crypto projects,It seems that the Trump team is “unprofessional” and it is like a professional behavior that is advanced in multiple tracks in the field of encryption.
The reason for this incident, which is similar to the logic of tracing the essence of Memecoin, is similar to the logic of converging voter support and building a personal brand by selling “MAGA Little Red Riding Hood”.Crypto Asset Meme has become a new medium to maintain supporters, create and connect communities, and explore the boundaries of family financial growth and technological innovation.
It is not difficult to guess that behind the Trump family, there are “experts” (professional teams) who are operating these things.
02Why does a president dare to issue coins?
Many people say that Trump’s Memecoin is the president’s token. Strictly speaking, Trump is not considered president before he took the oath to sign the inauguration ceremony.
Trump and his family group actually paid a lot of resources and funds during his years of politics and preparation for the presidential campaign, and urgently needed to achieve returns through various channels., and this inauguration event is an excellent opportunity. Trump has accumulated huge attention and traffic through the presidential election, and monetized his personal brand influence in the highlight moments before taking office.From MAGA Little Red Riding Hood to launching Memecoin, they are all means to continue their influence.
So, why did Trump choose to issue Memecoin at this time?The main reason is safety and compliance. There are no many legal risks in the presidential election.Therefore, this time, compared with previous projects such as NFT and WLFI, it is already relaxed and there are no too many concerns.
Before becoming president, I was still an ordinary person in law and there were no so many constraints. I only had the most appropriate time to do this.Just like “pre-marriage property”, the value generated by these projects in the future is generated before taking office, otherwise they will be subject to relevant restrictions after taking office.
03The president sends coins just to harvest?What consequences may be brought about?
1) Compliance issues
Although some people have begun to criticize Trump for his abuse of power, as mentioned above, his operations before taking office also have corresponding legal disclaimers. Compared with other popular Memes, there is nothing special.If everyone is equal, anyone has the right to publish their memes.
The legal issues of Meme’s issuance are mainly from the SEC’s securities regulation and litigation, but the SEC chairman has been replaced by a crypto-friendly candidate, which is what many people call “one of their own people”.So at present, the consequences of legal and compliance are avoided.
2) Moral issues
Trump’s move may be seen as commercializing personal influence or presidential image, but this is not without precedent.The reason why celebrities like Musk are unwilling to post tokens is actually a large part of the reason why they are morally problematic. The reputation of those who post tokens in the past became bad later, and such extreme behaviors are also easily backfired.In short, this is a high-risk but high-reward path, and this behavior can also lead to the loss of public trust and even long-term reputation risks.
3) The pattern should be big
Extreme behavior also has its two sides. Although Trump’s behavior is relatively radical, given that the current situation in the United States is not optimistic under the current environment, the risk of an economic recession remains.At this time, Trump was willing to go out and dared to accept innovation. Taking a new path that others have never taken may be able to develop a huge “gold mine”, leaving a great political achievement or even being famous in history, is not impossible.
4) Why is it inevitable to plummet?
The crypto market has extremely strong sentimental volatility.Even the market value of the physical industry concept stocks that the Trump family has operated for decades is less than 10 billion yuan, but the emotional Memecoin is not a physical industry that has accumulated over a long time, and it is difficult to maintain a high market value for the long term.As the market FOMO effect fades, it is inevitable that a significant adjustment after the price rises.
04What impact will it have on the crypto industry?
What the crypto community is most concerned about is its impact on the crypto industry itself. So is this more beneficial than disadvantages or more harmful than advantages?
1) The decentralized challenge of encryption
Some crypto KOLs have come forward to take responsibility for projects like Trump, which are “highly central” and are considered to be contrary to the original intention of crypto decentralization.This criticism also reflects some of the contradictions within the crypto community that have always faced the participation of centralized organizations and institutions.But then again, as a natural individual, whatever its identity, there is no reason for an open, transparent crypto community to organize him to participate, no matter what his identity is..Just like the “mining pool” in the Bitcoin node, although it is a stronger node, although it seems centralized, it does not affect it still needs to abide by the rules and become a member of many nodes.
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2) Accelerate out of the circle
Someone posted on social media that Crypto’s search volume has soared to its highest level in four years.This is the highlight of the new US president. It focuses the global attention here. This incident has caused a global sensation, allowing the crypto industry to accelerate its outreach and gain more exposureMore and more people are understanding and entering the industry. Of course, those who hate the currency circle may hate and reject it even more because of the exposure of this matter.
3) Improve confidence in crypto-friendly supervision
This incident made people see the Trump family personally participate in the crypto industry applications and the issuance of Meme, which shows that Trump has kept his previous commitment to the crypto industry, personally demonstrated, pursued innovation, and promoted the leading technology industry in crypto such asDetermined to enhance the confidence of friendly regulation may attract more investors and developers to join this field.
4) Specific crypto ecological impact
Trump’s Memecoin directly boosts the Solana ecosystem, NFT and WLFI DeFi projects based on the Ethereum and Bitcoin ecosystems, and the value under the related effects will be transmitted to various crypto tracks, accelerating the implementation and adoption of applications, and moreUsers and innovative developers are further attracted.
05summary
I believe most people will be surprised to see the Memecoin post posted by Trump at first sight, and subconsciously think that his social account has been stolen. Then after the double confirmation of X’s post, they realized that they started to participate or not.FOMO.
It has to be said that Trump’s “this move” is really unexpected and has caused too much controversy. It is still unknown how it will develop in the future.But no matter what, his bold attempt will definitely outweigh the disadvantages for the crypto industry to accelerate expansion and boost confidence.
