#MarketPullback Example of a Meme Currency "TRUMP"
1. Rapid Growth and Dopamine Flow:
The meme currency "TRUMP" witnessed a tremendous rise upon its launch, driven by several factors, most notably its association with the figure of "Donald Trump", who is considered a symbol of wealth and influence, in addition to the intense media coverage that highlighted the currency, thus enhancing interest and speculation around it.
One of the important psychological factors in this rise was the fear of missing out (FOMO), as investors feared missing potential gains, which drove them to enter the market without thorough analysis. According to neuroscience, this phenomenon is linked to dopamine pathways in the brain, where this neurotransmitter is released in response to the anticipation of financial rewards, enhancing excitement and participation in the market. When prices start to rise rapidly, traders enter a feedback loop, where optimism increases purchases, further raising prices.
This phenomenon is known as the euphoria phase, where positive emotions dominate the market, and many investors overlook potential risks, leading to the inflation of a speculative bubble.
