This article revolves around Trump's release of his personal meme token "TRUMP" late at night three days before entering the White House, detailing the event's progression, price trends, and market reactions, while analyzing the multiple motivations behind Trump's actions: from brand continuity and family interests to the global game in the cryptocurrency field. The article also explores the potential chain reactions this event may bring, including explosive expansion in the crypto market, changes in the policy environment, and a new round of competition in the global crypto financial landscape.
Quickly summarizing, on one night three days before Trump took office, he tweeted at 9:44, announcing the issuance of a meme token named after him, TRUMP. A total of 1 billion tokens were issued, with an initial circulation of 200 million tokens, and the remaining 800 million to be released over three years. The initial issuance price was around $0.18, and three hours later it reached $15. The next day, it was listed on major exchanges, with a peak price of $78, a market cap of $15.6 billion, and a fully diluted market cap of $78 billion.
The Trump Organization holds 80% of the 1 billion tokens. Following this, Trump's wife also issued her own meme token—MELANIA, which instantly surpassed a fully diluted market cap of $10 billion.
After three generations of effort, the Trump family finally accumulated a wealth of $4 billion. In just these three days, their paper wealth multiplied by more than ten times.
What is a Meme Token?
A meme coin is a cryptocurrency issued based on popular internet memes, humor, or elements of pop culture. It typically has no real application value and purely relies on community enthusiasm and speculative behavior to drive price fluctuations. For example, Dogecoin started as a joke but later became a large-cap cryptocurrency due to community support and celebrity endorsements. The price of meme coins is usually driven by sentiment, making them prone to extreme volatility, thus carrying high risks. Their main purpose is to attract attention, bring fun to the community, or become an iconic symbol on social media.
The president issuing a meme coin is outrageous. Yes, this really exceeds my understanding. Previously, he issued NFTs and launched the DeFi platform WLFI, which was backed by Sun Yuchen's $30 million investment, and it is said he plans to add another $45 million. These projects all have tangible products, teams, and problems to solve, as well as profitability, while this meme coin, as stated on their official website, is not intended to be any type of investment opportunity, investment contract, or security.
When I saw the news, it was around $4, and my first feeling was that Trump's account had been hacked; there was no way he would post this. The reasons are as follows: in two days he would be taking office as president, issuing a meme makes no sense; memes are a double-edged sword, with extreme ups and downs, why create trouble for himself? Second, memes do not contribute anything special to the industry; they do not solve specific problems, and there are many value-oriented individuals who avoid memes. Of course, you could say memes can help crypto break into new circles and attract more new users, which is also true. Third, the unique identity of the president closely ties personal branding and cryptocurrency, which blurs the line between public identity and private interests. Even if it does not violate the law, the moral risks could affect his political credibility and public image. Fourth, is it to make money? He doesn't lack money.
It definitely isn't, and then I watched it rise from $4 to nearly $80.
Why did he do this?
Here are several speculations to share with everyone.
- Brand Continuity and Community Cohesion
By issuing a meme coin, Trump can continue to extend his strong public influence and consolidate his brand. Similar to selling "MAGA hats" during his campaign, the meme coin becomes a new medium to attract and maintain voters and supporters. Cryptocurrencies, especially meme coins, can quickly gather fan bases and enhance community cohesion through digital assets.
- Financial Returns and Family Interests
By issuing a meme coin, Trump and his family can quickly monetize and gain economic returns. The initial rise of the $TRUMP token not only further enhances Trump's brand value but also brings direct financial benefits to the family group. This is a means for the Trump family to recoup the resources and funds invested during the campaign.
- Leveraging the Crypto Boom to Drive Innovation
By personally launching the meme coin, Trump demonstrates his support for innovative industries, especially in the cryptocurrency and blockchain fields. This action symbolizes his previous friendly commitment to the crypto industry and helps further establish his leadership image in technological innovation and finance.
- Accelerating Exposure and Popularization of the Crypto Market
The event of Trump launching the meme coin not only sparked widespread attention in the U.S. but also focused global attention on the crypto market. Through this action, Trump not only brings unprecedented exposure to the crypto industry but also accelerates the popularization and innovative applications of the crypto sector, encouraging more investors and developers to join.
- Transition from "Dollar Hegemony" to "Crypto Hegemony"
Amid challenges to the global financial system and the gradual impact of decentralized finance and digital currencies on dollar hegemony, Trump's issuance of the meme coin is, in fact, a response to the formation of "crypto hegemony." Cryptocurrencies, as decentralized and global payment tools, are gradually challenging the dominant position of the traditional dollar system. Trump seizes this opportunity not only to participate in this financial transformation through the promotion of cryptocurrencies but also to potentially pave the way for America's dominant position in the global digital economy. Behind this action, it is not only about monetizing personal brand and family interests but also about vying for strategic discourse power in the possible upcoming "crypto hegemony" era.
Why issue a meme token at this time?
Trump chose to release the meme coin during the "interim period" before officially taking office, cleverly utilizing this legal and compliance timing. In the U.S. Constitution, while an elected president must fulfill many moral and legal obligations, most of these obligations only take effect after officially taking the oath of office. During this transition period, Trump remains an ordinary citizen and has not entered government office, allowing him to operate more freely in business without the constraints and moral obligations that may come with being president.
Regardless, it has come to this, and we can only look forward. There are a few points that can be inferred.
First, since it is a meme, it will definitely experience extreme rises and falls; of course, the current circulation is only 20%, so they can still control the market.
Second, since the presidential family is continuously issuing tokens, it means that the upcoming crypto environment will definitely be loose and favorable; the SEC will surely introduce related positive policies.
Third, there will be a continuous issuance of tokens, and the era of memes will soon arrive.
Fourth, various countries will definitely introduce related policies and regulations; they cannot just watch the formation of American crypto hegemony.
There are no further extensions on other points; thank you all, goodbye.
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