Organization: Deng Tong, Golden Finance
At 9:44 pm local time on January 17, Trump announced on his social media account that he would launch his personal Meme currency TRUMP. Users need to visit the domain name Website for "gettrumpmemes" to earn Meme coins.
As soon as the news is released, Voices of support and opposition flooded the market, and the entire encryption market was boiling. Many investors also took this opportunity to make a lot of money. According to CoinGecko data, the TRUMP token hit an all-time high of $72.02 at 8:03 pm on January 19.
And Trump He will be sworn in under the auspices of U.S. Chief Justice Roberts at 12 noon Eastern Time on the 20th (1 a.m. Beijing time on the 21st), and will deliver an inaugural speech later. The three richest people in the United States, Musk, Bezos, and Zuckerberg, attended the event together. Two sources said Trump is preparing to issue a large number of executive orders and directives on his first day in office, with the total likely to exceed 100, covering immigration, energy production, etc.
At this ingenious time, Trump’s behavior of issuing Meme currency can’t help but cause market speculation: Will such a move really benefit the encryption market? Is it a game of chasing money with power?
1. What do industry insiders who support Trump’s coin issuance say?
Andrei Grachev, Partner, DWF Labs Tweeted: Trump is doing the best marketing for the cryptocurrency market.
Cardano co-founder Charles Hoskinson posted on X that Trump’s net worth of $29.6 billion 78.5% are in cryptocurrencies, making him one of the richest cryptocurrency entrepreneurs. This is mainly due to the Meme coin TRUMP issued by Trump. Hoskinson also noted that Trump’s extensive involvement in cryptocurrencies could lead to significant changes in the industry. His administration may redefine IRS policy on capital gains taxes and fair market value assessments of digital assets, anticipated changes that could impact the regulatory framework for the cryptocurrency industry.
Animoca Brands joint venture Yat Siu posted on the X platform: It is recommended that Trump carefully consider using TRUMP to support important of charitable foundations and causes, how the tokens are handled will have a ripple effect on trust and reputation across the crypto and Web3 industries, President Trump has the ability to do great things with TRUMP, which may go down in history as the most generous and charitable American president in history.
2. What do industry insiders who oppose Trump’s currency say?
Forbes said: Trump’s issuance of Meme coins may trigger a constitutional crisis. According to reports, although the new SEC chairman who is about to be nominated may introduce encryption-friendly policies, the relevant basic legal principles remain unchanged, and the personality and policy preferences of SEC leaders cannot override established securities laws. above. The Supreme Court's Howey test has been a cornerstone of securities regulation for 75 years, independent of individual governments and political appointees. While the SEC's enforcement priorities may change under new leadership, its statutory obligation to apply the Howey test remains absolutely unchanged. This enduring framework for evaluating investment plans is independent of any chairman’s crypto-friendly stance or industry affiliations.
The report pointed out that the launch of theTRUMP Meme coin exposed a fundamental tension in contemporary American politics. While Trump has positioned himself as a champion of the cryptocurrency industry and pledged to make the U.S. the "crypto capital of the world," the structure and timing of his own digital token project illustrates the challenges to his personal enrichment and political power. Convergence is worrisome. The concentration of token ownership in companies with ties to Trump, coupled with the timing of the issuance just before the inauguration, raises questions: Whether this represents genuine support for cryptocurrency innovation or is simply a clever attempt to further monetize the presidency.
Arthur Hayes Regarding "Trump releases Meme TRUMP", he said: This is a political meme currency market launch. Any politician who is not afraid of public opinion is going to come up with their own meme. These token economics are fugazi (note: derogatory term, fake thing), but these "dogs" Shit” reached $10 billion. But he also pointed out: Meme coins are the best fan interaction tool ever. If Trump does it, there's far less risk of Beyoncé or Swift doing it.
Former Coinbase executive and crypto venture investor Nick Tomaino said that Trump owns 80% of the TRUMP coin and before the inauguration Rolled out within hours, thisis predatory and many people may be harmed by it. Trump should be airdropping on the people, not taking advantage of it Make himself or his team rich. Currently it looks like an FTX token. But he also pointed out: Trump’s move means a shift from the Biden anti-cryptocurrency era to the Trump era.
Former Coinbase CTO Balaji Srinivasan posted: More than 90% of Trump’s approximately US$59 billion net worth has now been converted into encrypted assets. This change may have a major impact:
1) The proportion of Trump’s crypto assets jumped from 1% to 90%, similar to the wealth accumulation path of early Bitcoin and Ethereum holders;
2) This phenomenon of rapid devaluation of non-crypto assets may occur globally in the future;
3) If the value of TRUMP tokens continues, it may trigger political and business celebrities to follow suit and issue personal tokens. He suggested that Trump could resolve potential conflicts of interest through airdrops: based on current valuations, it would cost only $7.7 billion to airdrop locked TRUMP tokens worth $100 to each of 77 million supporters. Even if it were raised to US$500 per person, more than US$20 billion would still be left. Balaji believes that this plan can not only establish a new "president-citizen" relationship, but also provide a public opinion basis for Trump to promote encryption-friendly policies. He also pointed out: Meme coin is a zero-sum lottery and it does not create wealth. Each buy order is matched only by a sell order. After the initial surge, the price eventually collapses and the last buyer loses everything. If you consider the commission the platform takes from it, meme coins are actually a negative sum.
Danielle Brian, executive director of the nonpartisan Projecton Government Oversight (Projecton Government Oversight), said,Meme coins are generally not tied to any underlying business, making them highly speculative for investors and potentially lucrative for founders," the Trump Organization said. Any move to indicate they are concerned about potential conflict, especially one involving a foreign government, appears to completely undermine its efforts. ”Other groups that have raised concerns includeNonprofit Campaigns . The legal center and Citizens for Responsible Ethics in Washington, which unsuccessfully sued Trump during his first term for violating the Constitution’s ban on foreign gifts and compensation. Kedric Payne, general counsel of the Campaign Legal Center, said: "The clear difference with cryptocurrencies is how quickly you can get a windfall."
CryptoQuant CEO Ki Young Ju< /strong> Yu Averted. As the victims emerge, the chaos will affect the law – that’s the saddest part ”< strong>"Trump is unlikely to cash out his memecoin. He is more likely to use it to increase his net worth and reward loyal supporters and colleagues."
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Anthony Scaramucci, founder of SkyBridge Capital:This is bad for the industry and puts it in line with former Ugandan President Idi Amin level of corruption.
Meidas Touch co-founder Ben Meiselas: Trump should focus on more pressing matters.
Barstool Sports founder Dave Portnoy: This matterSimilar to Internet celebrity Haliey Welch’s alleged Meme coin HAWK pumping plan.
Cryptocurrency Detective Coffeezilla on YouTube: This launch was a “historic folly.”
Bitcoin Bull Anthony Scaramucci : Warning on X One Million FollowersDon’t “delude yourself” about the launch of Trump’s official meme coin.
Trump Bitcoin The organizer of the conference, Bitcoin Magazine, said on social platforms, TRUMP is a shitcoin. Bitcoin Magazine was a well-known pro-Trump media during the election. During its official event Bitcoin 2024 conference, Trump was invited to the stage and delivered a speech, in which Trump announced the launch of Bitcoin. Plans such as strategic reserves, ensuring that the United States will become the world’s encryption center and Bitcoin superpower, and firing the SEC chairman have started the Trump administration’s encryption-friendly policies.
Attorney David Lesperance pointed out: The president-elect’s launch of Meme Coin violates provisions of the U.S. Constitution designed to prevent foreign influence on U.S. government officials. “In the past, President-elect Trump’s launch of his meme coin, TRUMP, would have been viewed as a clear example of a violation of the Foreign Emoluments Clause of Article I, Section 9, Section 8 of the U.S. Constitution. "Given that TRUMP can easily be purchased by foreign individuals or governments, this appears to be a violation of this provision."
3. Will Trump’s Meme coin help Trump reach the top of his net worth?
Crypto KOL Conor posted on the X platform that according to the holdings of the Trump family team, if he wants to surpass the people on the Forbes rich list, TRUMP’s target price is as follows:
Touching $118: surpassing Michael Bloomberg; touching $145: surpassing Bill Gates; touching $203: surpassing Mark Zuckerberg; hits $225: surpassing Elon Musk; hits $270: becomes the world's richest man.
On January 19, “Trump’s virtual currency soared 1,250% overnight” ranked 13th on Baidu’s hot search list, and “Trump’s net worth soared 400% overnight” ranked 40th on Weibo’s hot search list Bit. Related searches on Weibo are "Cryptocurrency President Trump's net worth soared to $28 billion overnight, thanks to the virtual currency 'TRUMP' issued by Trump, which increased his estimated net worth by 400% ”
In just 24 hours after Trump’s issuance, its market value soared to a staggering US$4.8 billion, with a fully diluted valuation of US$24.3 billion. This number not only refreshes the record of Meme coins, but also indicates its potential to shake Dogecoin’s dominance in the field of Meme coins. In the eyes of many, the president's move to launch a meme coin is unprecedented, but if you look closely at Trump's development and utilization of his brand over the years, it is actually not surprising. From Trump University to Trump hotels, casinos, and even NFTs, the president has long been accustomed to monetizing his personal brand. The difference this time is not the strategy, but the medium—an ironic fact that it all stems from the current regulatory environment.
4. Is MELANIA, the Meme coin issued by Trump’s wife, reliable?
Trump’s wife Melania said on social media in the early morning that people can now buy the Meme coin MELANIA. However, according to Unusual Whales, the official website and domain name of Mrs. Trump’s Meme Coin MELANIA were created yesterday.
Trump loyal fan and Messari founder Ryan Selkis publicly appealed to Trump on social media, Recommend that it fire the relevant personnel who recommended the launch of the Melania project today. Selkis noted the following problems with the project:
The project team lacks professional capabilities; it may cause significant economic losses and damage to goodwill; project decisions did not fully consider Trump's interests.
According to Melaniameme’s official website, the MELANIA token adopts a token economic model that is significantly different from TRUMP. The token distribution plan is: 35% team share, 20% treasury, 20% community, 15% public offering, and 10% liquidity. In terms of the unlocking mechanism, the MELANIA team’s share only needs to be locked for 30 days, while TRUMP needs to be locked for 3 years. The MELANIA team share will be unlocked for the first time on the 30th day at 10% (accounting for 3% of the total supply), and then the remaining share will be unlocked linearly in months 2-13, with approximately 2.25% of the total supply unlocked every month until the 13th month All unlocked.
According to on-chain analyst Ember’s monitoring, MELANIA, the currency issued by Trump’s wife, has a 5-hour FDV speed pass of 10 billion US dollars, but the value of the team unlock part in the MELANIA token distribution is suspected to be wrong, the official website writes "The total amount of MELANIA is 1 billion: 35% team, 20% treasury, 20% community, 15% public distribution, 10% liquidity", but only 35% of the team has written unlocking rules, and the others have not been written. . This may mean that MELANIA's circulation capacity is 65%. “The MELANIA team part will begin to be unlocked in one month and will be fully unlocked within 13 months.” However, according to the distribution map provided on the official website, the team is allocated 35%. Let’s look at the values in the team unlocking rules below. This is calculated based on 30%.
According to monitoring by on-chain analyst @ai_9684xtpa, regarding the liquidity of MELANIA tokens, so far the DEV address has added 129 million tokens of unilateral liquidity to the MeteoraMELANIA/USDC pool. Token Economics It is pointed out that 10% of the tokens will be used for LP (i.e. 100 million); there are currently 9.64 million MELANIA and 275 million USDC in the pool, and the TVL is as high as 393 million US dollars. Regarding chip distribution, the DEV address has distributed 870 million tokens to five addresses. Three of the receiving addresses have no action yet. Address 7Wk1V...xdMkA and address 3XKsc...t6uKu are also performing actions to add liquidity.
As of press time, according to CoinGecko data, TRUMP has increased by 47.3% during the day and is now trading at $45.39.
MELANIA's intraday increase is 8.0 %, currently quoted at $8.02.
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