Recently, Trump posted a Memecoin, which caused a global sensation. There are different opinions. However, some media are like weather forecasts. In addition to telling you whether it has risen or fallen, how many people are repeating it? Liquidation, in fact, most people think too simply about this matter, and there may be a more profound intention behind it. Today we will analyze the logic, motivations and possible impacts of Trump’s coin issuance from multiple angles...

01 What is Trump doing by issuing Memecoin? What?

In recent years, Memecoin issued through Trump’s social account and led by the family group affiliated companies behind it are not only TRUMP in the past two days, but also Personal image NFT on the Ethereum chain, DeFi platform WLFI project based on Ethereum, Bitcoin inscription NFT, etc. Judging from Trump’s friendly “promise” to innovative industries such as encryption during the campaign, these seemingly unrelated encryption projects seem to be “unprofessional” by the Trump team, but when connected in series, they look like A professional behavior that lays out multiple tracks in the encryption field in advance. The similar reasons for issuing Memecoin, tracing back to its essence, are similar to his logic of gathering support from voters and building a personal brand by selling "MAGA Little Red Riding Hood". Cryptoasset Meme has become a new medium used to maintain supporters, create and connect communities, and explore the boundaries of family financial growth and technological innovation. It is not difficult to guess that there are "experts" (professional teams) behind the Trump family running these things.

02Why does the president of a country dare to issue coins?

Many people claim that Trump’s Memecoin issuance by the president is Token. Strictly speaking, Trump is not the president until he is sworn in and signed at the inauguration ceremony. Trump and his family group have actually spent a lot of resources and money during his years of politics and preparations for the presidential campaign, and they urgently need to realize returns through various channels. This inauguration is an excellent time. The election has accumulated huge attention and traffic, and the influence of personal brand can be realized in the highlight moments before taking office. From MAGA Little Red Riding Hood to issuing Memecoin, they are all ways to continue their influence. So, why did Trump choose this time to issue Memecoin? The main thing is safety and compliance. The presidential election is a done deal, and there are no longer too many legal risks. Therefore, compared with previous projects such as NFT and WLFI, this time it is already free and there are not too many worries. Before officially becoming the president, he was still an ordinary person under the law, and there were not so many restrictions. It was most appropriate to do this at this highlight moment, just like "Like "premarital property", the future value of these projects will be generated before taking office as president, otherwise they will be subject to relevant restrictions after taking office.

03 The president only issues coins What are the possible consequences for harvesting?

1) Compliance issues Although some people have begun to criticize Trump for abusing his power, in fact, as mentioned above, his operations before officially taking office also have corresponding exemption clauses in law. Compared with other popular Meme , there is nothing special about it. If everyone is equal, everyone has the right to publish their own meme. The current legal issues regarding meme distribution mainly come from the SEC. Securities regulation and litigation, but the SEC chairman has been replaced by a crypto-friendly candidate, who many people call "one of his own". So for now, the legal and compliance consequences have been avoided. 2) Ethical issues Trump. This move may be seen as commercializing personal influence or the image of the president, but this is not unprecedented. In fact, a large part of the reason why celebrities such as Musk are reluctant to issue tokens is due to ethical issues. The reputation of the person who issued the token later became notorious, and this extreme behavior is also prone to backlash. In short, this is a high-risk but high-reward path. This behavior may also lead to the loss of public trust and even bring disaster. Long-term reputational risk. 3) The pattern should be broad. Extreme behavior also has its two sides. Although Trump’s behavior is relatively radical, the current situation in the United States is not optimistic in the current environment, and the risk of economic recession is Danger still exists. At this time, Trump is generous enough and dares to accept innovation. Taking a new path that others have never taken may be able to develop a huge "gold mine" and leave a major political achievement or even be famous in history. Impossible. 4) Why is the crash inevitable? The sentiment of the crypto market is extremely volatile. Even the market value of the real industry concept stocks that the Trump family has been running for decades is less than 10 billion, but the sentiment is still high. ized Memecoin is not a real industry with long-term accumulation. It is difficult to maintain a high market value for a long time. As the FOMO effect in the market subsides, a sharp adjustment after the price rises is inevitable.

What impact will 04 have on the encryption industry?

What the encryption community is most concerned about is its impact on the encryption industry itself. So do the benefits outweigh the disadvantages, or do the disadvantages outweigh the benefits? 1) The decentralization of encryption challenges some encryption KOLs to stand up and take responsibility for Trump. It is generally believed that projects involving such "highly centralized" celebrities violate the original intention of encryption decentralization. This criticism also reflects some of the contradictions that have always existed within the encryption community when it comes to the participation of centralized organizations and institutions. Back, as a natural individual, no matter what identity it is, there is no reason for an open and transparent crypto communityGet him involved. Just like the "mining pool" in the Bitcoin node, although it is a more powerful node, although it seems to be centralized, it does not affect that it still has to abide by the rules and become one of many nodes.

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2) Accelerate the exit. Someone posted on social media that the search volume of Crypto has soared to the highest level in four years. This is the highlight moment of the new president of the United States. It has focused global attention here. This incident has caused The global sensational effect has allowed the crypto industry to accelerate out of the circle and gain more exposure. More and more people are understanding and entering the industry. Of course, people who hate the cryptocurrency circle may become even more disgusted and repelled by the exposure of this matter. it.

3) Increase confidence in crypto-friendly regulation This incident allows people to see Trump The family’s personal participation in the issuance of crypto industry applications and Memes shows that Trump has kept his previous commitments to the crypto industry, demonstrated personally, pursued innovation, and is determined to promote the leadership of crypto and other technology industries, which will enhance confidence in friendly supervision and may Attract more investors and developers to join this field.

4) The specific encryption ecology affects Trump’s Memecoin directly boosts the Solana ecology, NFT and WLFI DeFi projects are based on the Ethereum and Bitcoin ecology, and then in The spillover value from the related effects will be transmitted to various encryption tracks, accelerating application implementation and adoption, and further attracting more users and innovative developers.

05 summary

I believe that most people first saw Trump’s announcement Everyone would be surprised by the Memecoin post, subconsciously thinking that his social account had been stolen, and then after double confirmation of the X post, he realized that he started to FOMO regardless of whether he participated or not.

It must be said that Trump's "move" is really unexpected and has caused too much controversy. How it will develop in the future remains to be seen. It’s unknown, but no matter what, his bold attempt will definitely do more good than harm to the encryption industry by accelerating its expansion out of the circle and boosting confidence.