What are the huge negative impacts of TRUMP coins

Author: Stacy Muur, Web3 researcher; Translation: Bitchain Vision xiaozou

1,TRUMPandMELANIATimeline

The TRUMP narrative began even before its contract was deployed to Solana, with Trump tweet confirming his connection to the meme coin.

If you want to list a TRUMP and MELANIA eventTimeline, probably the following:

December 21, 2024: Domain Namegettrumpmemes.comBeing purchased.
January 17, 2025:First time coin minting.
January 18, 2025: Created at around 2 am UTC timeDEXTransaction pair.
45 minutes later, Donald Trump releasesOfficial Tweet.
On the same day, the domain namemelaniameme.comBeen purchased.
January 19, 2025: TRUMP reaches $76 at 11:30 am UTC timeHighest price in history.
10 hours later, MELANIADEXTransaction pairThe release triggered a massive sell-off from TRUMP holders.
40 minutes later, Melania Trump released hermemeCertificate of ownership of currency.
January 20, 2025: MELANIA hits $13.6Highest price in history.

In this area, there are some interesting patterns to watch:

TRUMP launchHave a plan.
MELANIA’s release isSpontaneous, its domain name was purchased after TRUMP was successfully released.
Proof of ownership of both meme coinsNo transaction pairs are published immediately after creation.

I don’t want to go into insider trading too deeply.They are just meme coins, and they also reflect all kinds of things in this industry.

In theory, the introduction of TRUMP may be related to culture, while MELANIA seems to be primarily a money-making machine.

2, unexpected and unexpected negative effects

Bitcoin pulls liquidity from the wider crypto market to reach record highs, the view that “Ethereum is used to store funds, Solana is used to trade” has been consolidated, and the relaxation of regulation – these in the early stages of Trump meme coin fanaticismThe topic is deeply explored by many insightful articles.I’m trying to avoid repeating what others have already discussed.

I would like to highlight some of the less obvious potential negative effects of Trump meme here, most of which have no solution.

MemeThe legality of the currency

If the US president can officially release a meme coin that has a 45% drop in the 15-minute K-line chart, then anyone can do it.

Before TRUMP was released, several celebrity meme coins had been released, most of which slowly fell to zero.Many believe that one day the Wild West of DEXScreener will end as the SEC will eventually focus on the unregulated meme currency market, which is full of scams and insider trading, and the only guaranteed winner is the developer.

Trump sets a legal precedent: Anyone can release it secretlymemeCoin, then40Announce theirmemeCoin, enjoy the process.

This historic move could have several huge negative effects:

(1) Will appearA new wavememeCoin craze, celebrities, politicians and even companies will join the trend.What is the only rule?Disclaimer: “X tokens are designed to express support and participation in the ideals and beliefs embodied by Y.” Therefore, the rich will become richer and the poor will become poorer – this is the common practice of meme currency transactionslaw.

(2)MemeThe number of coins issued will increase exponentially.Many of my friends in the Web2 field are asking me if I should all issue a meme coin together.For me, the answer is always “no” – I don’t want to bet on my reputation for money.

(3)The first step to attracting new users will be with the Wild West Rulesmemecurrency;There is no previous experience to learn from, and their chances of perseverance are slim.In their opinion, all cryptocurrencies will be meme coins, and in 90% of the cases, the experience will be negative.

(4) After several years of loose policies to the cryptocurrency industry,Over-regulation will occur to minimize fraud, and “protect American citizens from crypto wolves.”

(5)typicalWeb3Narrative——For example, infrastructure, DeFi and DePIN—The attention will be gained less and less.In the past few years, the lack of altcoin popularity and the popularity of “low circulation and high FDV” issuances have created extremely challenging conditions to attract capital and users.This problem is expected to get worse over time.Teams will need to prioritize typical product revenue models that do not require tokens to maintain.