jakiro
Author: Zeke, YBB Capital Researcher
Preface
On the eve of the inauguration of the US president, on the evening of January 17 local time, Trump announced the launch of his personal token – TRUMP Coin through Truth Social, a social media platform he founded.Initially, many people mistakenly thought the move was the result of a hacker attack on Trump’s account, but in dozens of minutes Trump retweeted about the token using his personal master account on X (formerly Twitter)Promotion information officially confirms the authenticity of this message.
What followed was a surge that was enough to load the history of cryptocurrencies, and a large amount of funds began to pour in. TRUMP quickly climbed from zero market value to a maximum of US$80 billion in just two days, almost completely siphoning all the market.Liquidity.The spread of this incident is no less than the assassination Trump experienced in Pennsylvania last year, and its magicality is no less than that of his tilted head and dodged the bullet.I also have some simple ideas to share about this incident.
Meme
In the Eastern power I live in, the final monetization of private domain traffic is often completed through live streaming of apps called “Tik Tok”.On the other side of the Atlantic Ocean, the 47th US President did an unprecedented thing, and the head of the “World Beacon” was using an electronic token to measure the value of his own influence and rights and amassing huge wealth for his family.There is no doubt that we are entering a special era, an era in which Crypto can be officially called Web3.0.
The original intention of the Internet was to end radio and television stations that monopolize the attention economy and return all this to users, but in the end its development path still deviated from the original route.Internet companies in the early days of Web2.0 that held chat platforms and search engines have developed into the behemoths we see today, such as Google and Tencent. They have completed their original accumulation and achieved long-term monopoly by mastering a large number of traffic portals.Today, ByteDance has almost dominated social media in China and the West.Although it is undeniable that short video platforms have brought many grassroots salty fish the opportunity to turn around, in most cases this benefit is shared by internet celebrity bloggers and the platform has absolute voice.
No matter how the form changes, monopolizing this economy is the eternal theme of the Web2.0 giants.The opportunities for ordinary people to benefit from it are very limited. Users can almost always contribute traffic and money in this feast. Meme Coin may be a new opportunity.Admittedly, it is dangerous to participate in Meme’s PVP, and there are also scams, and even need to accept an absolutely unfair distribution of 2:8 like TRUMP, but how many opportunities can ordinary people benefit from the traffic of the US president?The process from TRUMP from 0-80 is perhaps the only time.
In the past, I couldn’t explain what Meme Coin was.But now I think it can be explained in a few simplest words that the value of Meme is the pricing of something, someone, or a certain meme at a certain time period, just as the market gave President Trump a few days agoThe price is 80B.On the other hand, Meme is also a sharing of the traditional Internet attention economy. People are keen on these things that can keep their eyes shut, and Meme gives users an opportunity to participate in value allocation in hot events.
Pump
I have mentioned in my past articles that the best form of SocialFi is not Friend.tech, a Dapp that stipulates rules and regulations, but Pump, and the coin issuing team behind the president also chooses Pump.The reason is also very simple. People have a need to belong to a certain group, but it does not mean that they have to accept unfairness for this need.Friend.tech’s pricing for Key and the subsequent complicated gameplay around Token are the main reasons for its limited ceiling and ultimate failure.Looking back at the past SocialFi projects, dividing people into different levels based on the token holdings to allocate empowerment and services is also their failure.
Small but sophisticated will never apply to Crypto, which relies on community culture. Again, this applies to many tracks outside of SocialFi, such as the NFT that Trump has also released.Meme’s huge supply often allows it to quickly gain a giant community, whether you hold 100U tokens or 10WU tokens, you belong to this group.
In the past, we built a project that required Twitter to promote on social media, and then introduced users to Tg and DC to build a community.In an ancient Meme like Doge in the longer past, you can only find “organizations” through some forums.Pump incorporates the advantages of traditional social media on the basis of AMM and returns the rule setter to Creater, which is the main reason for its success. It compresses countless fitting processes, and you can always have countless tokens on the Pump homepage.Find your sense of belonging behind the icon.
Retro trend
No matter how you view the personal tokens issued by Trump, we will enter an era where Meme has become mainstream and tokenized multiple things.In fact, this is somewhat similar to the European medieval coin rights I mentioned in my article on stablecoins last year. Compared with the Chinese dynasties that have unified the same standard monetary system for most of the time, Europe has always been in bulk.Style, all countries, even all nobles and bishops have the right to mint and issue their own currencies.
Although TRUMP is essentially not a practical currency endorsed by gold and silver, after all, the president sets this precedent, and many European and American celebrities will inevitably join this medieval retro wave in the future.Another point worth pondering is that Trump owns 80% of the tokens, which will be as the “Trump Memes” announced on its official website as an ideal and belief reflected in the symbol “$TRUMP” and related art works.The expression of support and participation. They are not intended to be, nor should they be regarded as subjects of any form of investment opportunities, investment contracts or securities. “Become a pure Meme?”An asset used for rights realization?
Among many conspiracy theories, I actually prefer that this is a grand start for the TRUMP family to completely move from real estate to encryption. Using the influence of the media is the ability to be engraved in the DNA of this family member.A nonsensical incident can quickly create momentum, and choosing Meme as the beginning is perfect. It not only has various eye-catching myths of getting rich, but also has a sense of contrast with the president.I think most of the remaining tokens (according to the token release chart, perhaps for three purposes) can be airdropped to voters, donated to the United States to repay debts, and used for construction.All help consolidate Trump’s cultural totem to the United States and reverse the public’s stereotype of Crypto after the FTX incident, and the family’s transformation from industrial capital will start with this nearly 100 billion IP.(According to the situation of Jin Shi’s report, Trump does not have a high understanding of the crypto projects within the family and even his own tokens, which further confirms that the team behind him and their children are operating around Trump’s IP.. )
Ethereum
Solana is undoubtedly the biggest winner of this crypto weekend, achieving historical records of new SOL prices and multiple times of daily trading volume exceeding Ethereum in just two days.In comparison, the Ethereum community seems very lonely, and the core OG is increasingly protesting against the Ethereum Foundation and the development around the second floor.
However, judging from Solana’s surge in handling fees and failed transaction volumes, encryption is still a certain distance away from the real Mass Adoption.So on the issue of Ethereum, I still maintain the same view as in the past. The route around Layer2 is just being too fast and too advanced.There is almost no battle with Solana in the entire Ethereum ecosystem. Yes, even Base is extremely reluctant.The demand for small and high-frequency on the first floor completely shifts to the second floor. The Dapp on the second floor has not ushered in any breakthrough. There is a large amount of free block space and no one cares about it. The handling fee is pitifully low. This is the current situation of Ethereum.It is a microcosm of the ETH Killers.
The paradox of the development of public chains is not only the triangle problem, but also the problem of Gas income and technological development behind the triangle problem.In an extremely popular metaphor, Ethereum can be assumed to be a casino that requires tickets. In the past few years, business has been full, ticket supply is in short supply and even some people have been increasing their purchases for investment, and the price of this ticket has begun to rise.The boss realized that the casino was really not big enough and not spacious enough, so he set up a 100-fold casino. Given this scale, the admission price was reduced by 100 times, and a ticket in the past could come 100 times.As a result, I found that there were still so many customers, and the existing equipment did not require such a large venue, so the ticket prices began to sluggish.
This is the conflict between the advance development of Ethereum technology and token prices. In addition, Ethereum has never been backed by influence on social media, but the moat accumulated from the ICO era to DeFi Summer, so the lack of fresh blood is still the problem of lack of fresh blood.Continuously enlarging.
In addition to the urgent need for change in the foundation (I said about this question in this article “Why is the King of Copycats trapped in all directions?”), how to gain an advantage at the social level (make it easier for users to understand the various obscure technical concepts of Ethereum, more integrated into traditional social media), Layer2 how to better feedback (repurchase, modify DA pricing, and feed back the main chain), and how to better support the development of emerging dapps (Ethereum Grant no longer takes infrastructure projects as the only core,Various L2s should have better interoperability and compatibility) When the application layer is stagnant, the competition between public chains is often about details and differentiation.
Encryption 2.0
Trump ushered in the 2.0 era, and the next era of encryption will be influenced by this family. What do they want to do?Although the family’s first project, World Liberty Financial (WLFI), has not yet been launched, we can still get a glimpse of the clues from the project’s proposal forum. In the first proposal, it is described as follows:
The WLFI protocol will provide liquidity for Ethereum (ETH), packaging Bitcoin (WBTC), certain stablecoins, and possibly other digital assets.WLFI will enable WLFI protocol users to access WLFI protocol Aave instances, and WLFI protocol Aave instances will be managed through Aave’s risk management system.WLFI aims to introduce a new class of users to over-solidated lending, which is one of the most important features of Decentralized Finance (DeFi).WLFI plans to attract new users into the DeFi space by providing and borrowing digital assets with seamless experiences.Many of these users will be first-time DeFi, which will help build brand loyalty and awareness to WLFI and Aave, helping Aave maintain market leadership in the digital asset lending and supply space.
Initially, the WLFI protocol will allow USDC, USDT, ETH, and WBTC to be used for lending.More assets may be added in the future through WLFI voting proposals.
WLFI will use the same reserve ratio system as the primary Aave instance in this Aave V3 instance.AaveDAO will receive 20% of the protocol fees incurred by WLFI Aave V3 instances and will receive approximately 7% of the total circulation to participate in future WLFI governance procedures, liquidity mining and facilitate the de-department of the WLFI platform.Centralization.The revenue distribution will be set up through a trustless smart contract that directs the corresponding agreement fee percentage to the AaveDAO treasury and WLFI treasury addresses.
Based on the recent large number of tokens for various project types, WLFI is considered an on-chain lending institution created by Donald John Trump Jr. using his father’s influence.Sell WLFI tokens with your left foot and buy value coins with your right foot (if there is a big project to invest, WLFI can even step on this trick with your left and right foot), and then spiral into the sky.In addition, WLFI is also buying various domain names in large quantities. According to the information posted by Cointelegraph on Twitter, WLFI has currently bought daolationship.eth, yatogame.eth, WorldLiberty.eth, trumpcoin.eth, erictrump.eth,barrontrump.eth, 9290.eth.It is not difficult to see from this that the main theme of the Trump family’s future will still revolve around the TRUMP IP, but the track will be widespread. In the next four years, the Trump family project may be like the Trump Group Real Estate, which is now in New York.There are in various public chains.
The curtain slowly fell, and an extremely special era is coming.Whether you accept this “crypto president” or not, you must admit that many of the big things that will affect Crypto in the next four years will happen across the Atlantic Ocean, and Crypto can either follow or make it happen all over the world at once.Rebirth.
