Trump’s family issued coins continuously to “harvest” the right and wrong of the crypto industry

Compiled by: Deng Tong, Bitchain Vision

At 9:44 pm local time on January 17, Trump posted a message on his social media account that he would launch his personal Meme coin TRUMP. Users need to visit a website with the domain name “gettrumpmemes” to obtain the Meme coin.

Once the news was released, support and opposition filled the market, and the entire crypto market was in full swing.Many investors have also taken this opportunity to make a fortune.According to CoinGecko data, the TRUMP token hit an all-time high of $72.02 at 8:03 pm on January 19.

Trump will be sworn in at 12 noon Eastern Time on the 20th (1 a.m. Beijing time on the 21st) under the auspices of US Chief Justice Roberts and will deliver an inauguration speech later.The three richest Americans, Musk, Bezos and Zuckerberg, attended the same frame.Two sources said that Trump is preparing to issue a large number of executive orders and directives on his first day of taking office, with a total of more than 100 items, covering immigration, energy production, etc.

At this clever point in time, Trump’s behavior of issuing Meme coins could not help but cause market speculation: Will such a move really benefit the crypto market?Is it a game of chasing money with power?

1. What do industry insiders who support Trump’s issuance of coins say?

Andrei Grachev, Partner at DWF LabsTweeted:Trump is doing the best marketing for the cryptocurrency market.
Cardano Co-founder Charles HoskinsonYu X revealed that 78.5% of Trump’s $29.6 billion net worth is cryptocurrency, making him one of the richest cryptocurrency entrepreneurs.This is mainly attributed to the Meme coin TRUMP issued by Trump.Hoskinson also pointed out thatTrump’s extensive participation in cryptocurrencies could lead to significant changes in the industry.His administration may redefine the IRS’s policy on capital gains taxes and fair market value assessments of digital assets, and these expected changes could impact the regulatory framework of the cryptocurrency industry.
Animoca Brands Yat Siu posted on X platform: Trump is advised to consider carefully using TRUMP to support important charitable foundations and causes, and the way tokens is processed will have a ripple effect on the trust and reputation of the entire crypto and Web3 industry.Trump has the ability to do something great with TRUMP, which may become the most generous and charitable American president in history and go down in history.

Eric Trump, executive vice president of Trump GroupOn the X platform, “I am very proud of what we have achieved in the cryptocurrency space,Trump is the hottest digital Meme on the planet at present.I firmly believe that WLFI will completely change DeFi/Cefi and will become the future of finance.We’re just getting started.”

2. What do industry insiders who oppose Trump’s issuance of coins say?

Forbesexpress:Trump’s issuance of Meme may trigger a constitutional crisis.The report said that although the upcoming new SEC chairman may introduce crypto-friendly policies, the basic legal principles remain unchanged, and the personality and policy preferences of SEC leaders cannot override the established securities laws.The Supreme Court’s Howie Test is the cornerstone of securities regulation over 75 years and is not affected by individual government and political appointments.While the SEC’s enforcement priorities may change under new leadership, its legal obligation to apply the Howie Test remains absolutely unchanged.This lasting framework for evaluating investment plans is independent of any chairperson’s crypto-friendly position or industry relationship.The report pointed out thatThe launch of TRUMP Meme coins has exposed a fundamental tension in contemporary American politics.While Trump positioned himself as a champion of the cryptocurrency industry and promised to build the United States as the “global cryptocurrency capital”, the structure and timing of his own digital token project show that he is personally rich and politically powerfulFusion is worrying.Token ownership is concentrated on companies associated with Trump, plus the release time just before the inauguration, which raises questions:Does this represent a real support for cryptocurrency innovation or is it just a clever attempt to further monetize the presidency.
Arthur HayesRegarding “Trump’s Issuance of Meme TRUMP”, it said: This is the launch of the political meme currency market.Any politician who is not afraid of public opinion will launch his own meme.These token economics are fugazi (note: derogatory words, fake things), but these “shit” hit $10 billion.But he also pointed out: Meme coins are the best fan interaction tool ever.If Trump does this, then there will be much less risk in Beyoncé or Swift.
Former Coinbase executive, crypto venture capitalist Nick TomainoTrump has 80% of the TRUMP coin share and launched it a few hours before the inauguration,It is predatory and many people may be hurt by it.Trump should airdrop the people.Rather than using this to make yourself or his team rich.Currently it looks like an FTX token.But he also pointed out that Trump’s move means a transition from Biden’s anti-cryptocurrency era to the Trump era.

Former Coinbase CTO Balaji Srinivasan发文表示：Trump’s net assets of about $59 billion have now been converted into crypto assets, and this change may have a significant impact:1) Trump’s crypto assets jumped from 1% to 90%, similar to the wealth accumulation path of early Bitcoin and Ethereum holders;2) This rapid depreciation of non-crypto assets may occur globally in the future;3) If the value of TRUMP tokens continues, it may trigger political and business celebrities to follow suit and issue personal tokens.He suggested that Trump could resolve potential conflicts of interest through airdrop schemes: Based on current valuations, it only costs $7.7 billion to locked TRUMP tokens to 77 million supporters, even if it increases to $500 per person.可剩余200多亿美元。Balaji believes that this plan can not only establish a new type of “president-citizen” relationship, but also provide a public opinion basis for Trump to promote crypto-friendly policies.他还指出：Meme coins are zero-sum lottery, and they do not create wealth.每笔买单都只是与卖单匹配。After the initial soar, prices will eventually plummet and the final buyer will lose everything.If you consider the platform to draw commissions from it, meme coins are actually negative sums.
Danielle Brian, Executive Director of Projecton Government Oversightexpress,Meme coins are usually not related to any underlying business, so they are highly speculative for investors and can lead to huge profits for founders. “Trump Group is concerned about potential conflicts (especiallyAny moves made by conflicts involving foreign governments seem to completely undermine their efforts.”Other groups raising concerns includeThe Nonprofit Campaign Law Center and the Citizen Responsibility Ethics Organization in Washington, the latter sued Trump during his first term for breaking the constitutional provisions prohibiting foreign gifts and compensation, but was unsuccessful.”The obvious difference between cryptocurrencies is how quickly you can get a windfall,” said Kedric Payne, general counsel for the campaign law center.
CryptoQuant CEO Ki Young JuYu X posted: “Social influence will soon be measured by market value rather than the number of fans. Trump’s issuance of coins yesterday marked this shift. Unless someone stronger than the president intervenes, this is inevitable.As the victims emerge, chaos will affect the law – and that’s the most pathetic part.”“Trump is unlikely to cash in on his memecoin. He is more likely to use it to increase his net worth and reward loyal supporters and colleagues.”

Anthony Scaramucci, founder of Tianqiao Capital:This is bad for the industry and compares it to the level of corruption in former Uganda President Idi Amin.
Ben Meiselas, co-founder of Meidas Touch:Trump should focus on more urgent matters.
Dave Portnoy, founder of Barstool Sports:This matterIt is similar to the plan of HAWK, a Meme currency suspected by internet celebrity Haliey Welch.
Coffeezilla, a cryptocurrency detective on YouTube:This release is “historic stupidity.”
Bitcoin bull Anthony Scaramucci: Warn of a million fans on XDon’t “deception” about Trump’s official Meme coins.

Bitcoin Magazine, organizer of Trump’s Bitcoin ConferenceIt is stated on social platforms,TRUMP is a junk coin.Bitcoin Magazine is a well-known pro-Trump media during the election. During its official event, Bitcoin 2024 Conference invited Trump to the stage and delivered a speech. In the speech, Trump announced the launch of Bitcoin strategic reserves to ensure that the United States will become the worldCrypto Center and Bitcoin Superpower, and the firing of the SEC chairman have launched the Trump administration’s crypto-friendly policies.

Lawyer David LesperanceNote:The launch of Meme coins by the president-elect violates regulations in the U.S. Constitution that aims to prevent foreign influence from U.S. government officials.“In the past, President-elect Trump’s launch of his Meme currency, TRUMP, would be regarded as an obvious example of a violation of Article 1, paragraph 9, Article 8 of the U.S. Constitution. “Given that TRUMP is easily foreignIt seems to be a violation of these terms by individual or government purchases”.

3. Will Trump’s Meme coins help Trump reach the top?

Encrypted KOL ConorPosted on X platform that according to the Trump family’s holdings, if you want to surpass the Forbes Rich List, TRUMP’s target price is as follows:Touch $118: Overcoming Michael Bloomberg; Touch $145: Overcoming Bill Gates; Touch $203: Overcoming Mark Zuckerberg; Touch $225: Overcoming Elon Musk; Touch $270: BecomingThe richest man in the world.

On January 19, “Trump issued virtual coins and soared by 1250% during the session” topped the 13th place on Baidu’s hot search list, and “Trump’s net worth soared by 400% overnight” topped the 40th place on Weibo’s hot search list.Related searches on Weibo are “cryptocurrency President Trump’s net worth surged to $28 billion overnight, thanks to the virtual currency ‘TRUMP’ issued by Trump, which increased his estimated net worth by 400%.”

Within just 24 hours of Trump’s issuance, its market value soared to an astonishing $4.8 billion, with a fully diluted valuation of $24.3 billion.This number not only breaks the record of Meme coins, but also indicates that its potential is expected to shake Dogecoin’s dominance in the Meme coins field.In the eyes of many, the president’s move to launch Meme coins is unprecedented, but it is not surprising if Trump carefully examines the development and utilization of his brand over the years.From Trump University to Trump hotels, casinos, and even NFTs, the president has long been accustomed to monetizing through his personal brand.The difference this time is not the strategy, but the medium – an ironic fact is that it all stems from the current regulatory environment.

4. Is the Meme currency MELANIA issued by Trump’s wife reliable?

Trump’s wife Melania said on social media in the early hours of the morning that people can buy Melania.However, according to Unusual Whales, the official website and domain name of Mrs. Trump’s Meme currency were created yesterday.

Ryan Selkis, a loyal Trump fan and founder of MessariPublicly calling on Trump on social mediaIt is recommended that he fire the relevant personnel who recommended to initiate the Melania project today.Selkis pointed out that the project has the following problems:The project team lacks professional capabilities; it may cause significant economic losses and goodwill damage; project decisions do not fully consider Trump’s interests.

According to the official website of Melaniameme, MELANIA tokens adopt a token economic model that is significantly different from TRUMP.The token allocation plan is: 35% of the team share, 20% of the treasury, 20% of the community, 15% of the public offering, and 10% of liquidity.In terms of unlocking mechanism, MELANIA team shares only need to lock the position for 30 days, while TRUMP needs to lock the position for 3 years.MELANIA team share will unlock 10% for the first time on Day 30 (3% of the total supply), followed by linear unlocking of the remaining share in the 2-13th month, about 2.25% of the total supply unlocked every month until Month 13thAll unlocked.

According to the monitoring of the on-chain analyst Yu Ember, Trump’s wife issued a coin of MELANIA 5-hour FDV speed-transfer $10 billion, but the value of the team unlocked part in the allocation of MELANIA tokens is suspected to be incorrect. The official website wrote “MELANIA total amount is 1 billion”.: 35% team, 20% treasury, 20% community, 15% public allocation, 10% liquidity, but only 35% of the team have written unlocking rules, and no other ones have been written.This may mean that MELANIA has 65% circulation capacity.”The MELANIA team part will be unlocked in one month and will be unlocked in 13 months.” However, according to the distribution chart assigned by the official website, the team will be allocated 35%.And according to the values in the team unlocking rules below, this is calculated at 30%.

According to the on-chain analyst @ai_9684xtpa, regarding the liquidity of MELANIA tokens, as of now, the DEV address has added 129 million tokens to the MeteoraMELANIA/USDC pool. Token economics points out that 10% of the tokens areIt will be used for LP (i.e. 100 million pieces); there are currently 9.64 million MELANIA and 275 million USDC in the pool, and TVL is as high as US$393 million.Regarding chip distribution, the DEV address has distributed 870 million tokens to five addresses, of which three of the receiving addresses have no action yet, address 7Wk1V…xdMkA and address 3XKsc…t6uKu are also performing the action of adding liquidity.

5. Trump’s family project is sought after. WFLI will restart sales after it is sold out.

On January 20, according to the official website, the pre-sale of the official token of the Trump family’s crypto project World Liberty Financial (WLFI) has been sold out.But after the sale was completed, Trump’s crypto project WLFI said on social platforms that it had completed its mission and sold 20% of the token supply. Due to the huge demand and high attention, it decided to open up another 5% of the tokens.Supply.The team is working to restart sales.

As expected, WLFI restarted sales in just two hours.

According to on-chain analyst @ai_9684xtpa, as WFLI is sold out, World Liberty Financial (WLFI) on-chain holdings have soared to US$235 million, and the top 3 assets are all subscribed assets: ETH: US$109 million; USDT: US$63.23 million; USDC: US$55.16 million; ETH holdings have increased to 33,631 pieces. It should be noted that most of them are obtained from WFLI public subscription, with only 12,601 pieces being voluntarily purchased; at present, the institution has purchased a total of 24,433 pieces of ETH (cost 3,379 US dollars).And 11,832 of them have been recharged into Coinbase, and their purpose is unknown.

The Trump family project WLFI spent a total of USDT 48 million in the past 11 hours to buy 14,403 ETH.Trump’s second son Eric Trump retweeted World Liberty (WLFI)’s purchase of large ETH on X platform and said: “Wait to see what they will do tomorrow.”

In addition, World Liberty is also quite interested in ENS domain names: World Liberty has signed multiple addresses around 12:00 today, and bought the domain name 9290.eth; 10 hours ago, bought WorldLiberty.eth, trumpcoin.eth, erictrump.eth, and barrontrump.eth four ENS domain names.

As of press time, according to CoinGecko data, TRUMP has increased by 47.3% intraday and is now at $45.39.