The Backstory Behind Trump's Memecoin Causing Market Buzz

Written by: Mu Mu, Blockchain in Plain Language

Recently, Trump's launch of a Memecoin has caused a global sensation, with various opinions emerging. However, some media outlets, much like weather forecasts, merely report the ups and downs and how many people have been liquidated. In fact, most people are thinking too simply about this matter; there may be deeper intentions behind it.

Today, we will analyze the logic, motives, and potential impacts of Trump's coin launch from multiple perspectives…

01 What is Trump Trying to Achieve by Launching a Memecoin?

In recent years, the Memecoin launched through Trump's social media account, led by his family group's affiliated companies, is not limited to the recent TRUMP; it also includes personal image NFTs on the Ethereum chain, the Ethereum-based DeFi platform WLFI project, Bitcoin inscription NFTs, and more. Considering Trump's friendly "commitment" to innovative industries like crypto during his campaign, these seemingly unrelated crypto projects appear to be a haphazard release by Trump's team, but when connected, they resemble a professional strategy for early positioning in multiple tracks within the crypto space.

The essence of launching a Memecoin is similar to how he once garnered voter support and built his personal brand by selling "MAGA red hats." Crypto asset memes have become a new medium to maintain supporter engagement, create and connect communities, and explore the boundaries of family financial growth and technological innovation.

It is not hard to guess that there are "experts" (professional teams) behind the Trump family managing these affairs.

02 Why Would a President Dare to Issue a Coin?

Many people refer to Trump's Memecoin launch as a president issuing a token; strictly speaking, Trump was not considered president before he signed the oath of office.

Trump and his family group have invested significant resources and funds during his years in politics and while preparing for the presidential campaign, urgently needing to achieve returns through various means. This inauguration event is an excellent opportunity for Trump to monetize the massive attention and traffic he has accumulated through the presidential election during this high-profile moment. From MAGA red hats to launching a Memecoin, these are all means to extend his influence.

So, why did Trump choose to issue a Memecoin at this time? The main reason is safety and compliance; the presidential election has already been set in motion, leaving little legal risk. Therefore, compared to previous projects like NFTs and WLFI, this time he has more freedom and fewer concerns.

Legally, before officially becoming president, he is still an ordinary person with fewer constraints, making this high-profile moment the most suitable time to do this. Like "premarital property," the value generated by these projects in the future will be created before he takes office; otherwise, he would face relevant constraints after taking office.

03 Is the President Issuing a Coin Just for Harvesting? What Consequences Could Arise?

1) Compliance Issues

Although some have begun to criticize Trump for abusing his power, as mentioned earlier, his actions before officially taking office have corresponding legal exemptions. Compared to other popular memes, there is nothing particularly special about it. If we advocate for equality, anyone has the right to release their own meme.

Currently, the legal issues surrounding meme issuance mainly stem from SEC securities regulation and litigation, but the SEC chair has been replaced with a crypto-friendly candidate, often referred to as "one of us." So, for now, the legal and compliance consequences have been largely avoided.

2) Ethical Issues

Trump's actions may be seen as commercializing personal influence or the presidential image, but this is not without precedent. Many celebrities, like Musk, are reluctant to issue tokens largely due to ethical concerns; those who have previously issued tokens have often seen their reputations tarnished, and such extreme actions can easily backfire. In short, this is a high-risk but high-reward path, and such behavior could lead to a loss of public trust and even long-term reputational risks.

3) A Bigger Picture

Extreme actions have their duality; although Trump's behavior is quite radical, given the current situation in the U.S. is not optimistic, with ongoing risks of economic recession, Trump is bold enough to embrace innovation, and taking a path that others have never walked may uncover a massive "gold mine," leaving behind significant achievements or even going down in history.

4) Why is a Crash Inevitable?

The emotional volatility of the crypto market is extremely high. Even the market value of the physical industry concept stocks managed by the Trump family for generations is less than ten billion, but emotional Memecoins are not such long-term accumulated physical industries, making it difficult to maintain a high market value over time. As the market's FOMO effect fades, a significant price adjustment after a surge is unavoidable.

04 What Impact Will This Have on the Crypto Industry?

The crypto community is most concerned about the impact this will have on the crypto industry itself. So, does this bring more benefits than drawbacks, or vice versa?

1) Challenges to Crypto Decentralization

Some crypto KOLs have criticized Trump's involvement in this "highly centralized" project, arguing that it violates the original intention of crypto decentralization. This criticism reflects some of the contradictions the crypto community has faced regarding the participation of centralized organizations and institutions. However, as a natural individual, regardless of their identity, the open and transparent crypto community has no reason to exclude them from participation. Just like "mining pools" in Bitcoin nodes, although they are more powerful nodes and seem centralized, it does not prevent them from following the rules and being part of the many nodes.

The founder of MicroStrategy calls for the soon-to-be-outgoing SEC chair Gary to come back and "regulate"

2) Accelerating Outward Expansion

Posts on social media indicate that the search volume for Crypto has surged to its highest level in four years. This is the high-profile moment of the new U.S. president, focusing global attention here. This event has already caused a global sensation, allowing the crypto industry to accelerate its outward expansion and gain more exposure. More and more people are learning about and entering the industry, although those who dislike the crypto space may become even more averse to it due to this exposure.

3) Boosting Confidence in Crypto-Friendly Regulation

This event shows that the Trump family is personally involved in the application of crypto and the issuance of memes, indicating that Trump has honored his previous commitments to the crypto industry, personally demonstrating the pursuit of innovation and the determination to lead the crypto and tech industries, enhancing confidence in friendly regulation, which may attract more investors and developers to join this field.

4) Specific Impacts on the Crypto Ecosystem

Trump's Memecoin directly boosts the Solana ecosystem, while NFTs and WLFI DeFi projects are based on Ethereum and Bitcoin ecosystems. The resulting value from these related effects will spill over into various crypto tracks, accelerating application landing and adoption, attracting more users and innovative developers.

05 Conclusion

Most people would be surprised at first glance when they see Trump's Memecoin post, instinctively thinking whether his social media account has been hacked, and only after double-checking on X do they realize that whether they participate or not, FOMO has already begun.

It must be said that Trump's "move" is indeed unexpected and has sparked much controversy. How it will develop in the future remains uncertain, but regardless, his bold attempt has undoubtedly accelerated the expansion and boosted confidence in the crypto industry, which is more beneficial than harmful.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。