This article revolves around Trump's late-night release of his personal meme token "TRUMP" three days before taking office, detailing the event's progression, price trends, and market reactions, while analyzing the multiple motivations behind Trump's move: from brand continuity and family interests to the global game in the crypto field. The article also explores the potential ripple effects of this event, 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 closely, Trump's wife also issued her own meme token—MELANIA, which instantly surpassed a fully diluted market cap of $10 billion.
The Trump family accumulated a fortune of $4 billion over three generations. 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 relies purely 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 highly volatile and risky. Their main purpose is to attract attention, provide fun for 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 Sun Yuchen invested $30 million in, and it is said he plans to add another $45 million. These projects have solid products, teams, and problems to solve, along with profitability, while this meme coin, as stated on their official website, does not intend to become 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 will be inaugurated as president and issuing a meme makes no sense. A meme is a double-edged sword, with huge 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 many value-oriented investors 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 lines between public identity and private interests. Even if it doesn't 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 a few 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 solidify his brand. Similar to selling "MAGA hats" during his campaign, the meme coin serves as 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 of returning the resources and funds invested by the Trump family during the campaign.
- Leveraging the crypto craze to promote innovation
By personally launching the meme coin, Trump demonstrates his support for innovative industries, particularly in cryptocurrency and blockchain. This action symbolizes his previous friendly commitment to the crypto industry and helps further establish his leadership image in technology innovation and finance.
- Accelerating exposure and popularization of the crypto market
The event of Trump releasing 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 its popularization and innovative applications, encouraging more investors and developers to join.
- Transition from "dollar hegemony" to "crypto hegemony"
In the context of the global financial system facing challenges and the dollar hegemony gradually being impacted by decentralized finance and digital currencies, 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 is not only the monetization of personal branding and family interests but also a strategic bid for 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. According to the U.S. Constitution, while an elected president must fulfill many moral and legal obligations, most of these obligations only take effect after the official oath of office. During this transitional period, Trump remains an ordinary citizen and has not yet entered government service, allowing him greater freedom in business operations without the constraints and moral obligations that come with being president.
Regardless, it is what it is, and we can only look forward. A few points can be inferred.
First, since it is a meme, it will definitely experience huge ups and downs. Of course, the current circulation is only 20%, so they can still control the market.
Second, since the presidential family is consecutively issuing tokens, it means that the upcoming crypto environment will definitely be relaxed and favorable, and the SEC will surely introduce related beneficial policies.
Third, there will be a continuous issuance of tokens, and the era of memes will soon arrive.
Fourth, various countries will certainly introduce relevant policies and regulations, as 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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