On January 20, 2025, Eastern Standard Time, Trump will be sworn in as President of the United States. Two days before his official inauguration, Trump and his wife Melania issued personal Meme coins in the cryptocurrency circle.
Guess why the Trump team is doing this:
1. Political motives: Serving power, strengthening personal influence
Trump is a political figure extremely skilled at utilizing media and personal brand influence, and his every action often carries political objectives.
The issuance of coins may serve the following political objectives:
1.1 Attracting young voters
User base of cryptocurrencies: The main user base of cryptocurrencies consists mostly of young people, tech enthusiasts, and investors in innovative fields. Trump's traditional supporters are mainly older conservative individuals, and issuing meme coins can attract the attention of young voters, expanding his support base.
The spread of meme culture: Meme coins are essentially an internet cultural phenomenon, aligning with the language system and entertainment spirit of the younger generation, making it easier to bridge the gap with young people.
1.2 Exposure from controversial events
Trump has always been skilled at creating controversy, using hot topics to attract media and public attention. Issuing personal meme coins is itself a highly controversial act that can quickly grab headlines, further solidifying his position as the 'king of traffic.'
Timing choice: Launching meme coins two days before his inauguration as president is clearly intended to generate global attention and create public discourse heat for his new presidential term.
1.3 Challenging the traditional financial system
Trump has previously criticized Bitcoin and cryptocurrencies, but the issuance of meme coins suggests he may have realized the potential of blockchain technology and cryptocurrencies. By issuing his own digital assets, he could further challenge the traditional financial system and even reinforce his political image of 'standing against the Washington establishment.'
2. Economic motive: Huge capital attraction
Behind the issuance of meme coins, economic motives may be a significant driving force. The Trump Organization, as a business empire, clearly sees the enormous economic potential of the cryptocurrency market.
2.1 Raising huge funds
Speculative nature of meme coins: Meme coins are essentially highly speculative crypto assets, with significant price fluctuations that easily attract a large number of short-term investors. The explosive growth of Trump Coin and Melania Coin proves the market's enthusiasm for such coins.
Use of funds: Although the official explanation of fund usage is not clear, it can be reasonably speculated that the raised funds may be used for Trump's political activities, campaign funding, or the business expansion of the Trump Organization.
2.2 Avoiding traditional financing restrictions
In the United States, the sources and uses of campaign funds are strictly regulated, and funds raised through cryptocurrency issuance may bypass traditional financial regulatory frameworks, becoming a 'gray area' financing method.
The issuance of Trump Coin and Melania Coin may bring huge economic benefits to the Trump Organization while avoiding scrutiny from the traditional financial system.
2.3 Long-term profit sources
Token unlocking mechanism: The 800 million tokens of Trump Coin will be gradually unlocked over the next three years, meaning the Trump Organization can long-term gain huge profits by controlling the token supply.
Distribution controversy of Melania Coin: Melania Coin has been criticized for having nearly 90% of its supply concentrated in one wallet, and this centralized distribution method may provide the team with significant financial manipulation space.
3. Brand motive: Creating a digital extension of personal IP
The issuance of meme coins by Trump and Melania can also be seen as a digital extension of their personal brand.
3.1 Expansion of the Trump brand
Trump has long been known as the 'businessman president,' and his name itself is a powerful commercial brand. From Trump Tower to Trump Golf Course, his brand value spans various fields.
Issuing meme coins is an attempt to extend the personal brand into the digital currency field and further consolidate its brand influence globally.
3.2 Combining with fan economy
Trump's supporter group has extremely high loyalty, and the issuance of meme coins can be seen as a manifestation of fan economy. Supporters can not only purchase NFTs or meme coins but also express their support for Trump by holding these tokens.
Community effect: The high volatility and social attributes of meme coins help form a strong community, bringing supporters closer together.
4. Market motive: Capitalizing on cryptocurrency trend dividends
The rapid development of the cryptocurrency market in recent years, especially the meme coin craze, provides an excellent market opportunity for the Trump couple's actions.
4.1 Seizing the windfall of meme coins
From Dogecoin to Shiba Inu, successful cases of meme coins are endless. The launch of Trump Coin and Melania Coin clearly aims to replicate the success of these meme coins.
Utilization of market sentiment: The prices of meme coins are often driven by market sentiment, and the high visibility and controversy surrounding the Trump couple can quickly amplify this sentiment, driving up coin prices.
4.2 Potential of blockchain technology
Although meme coins themselves lack substantial value, the potential of blockchain technology is undeniable. The Trump couple may hope to explore more possibilities for digital assets through this attempt.
5. Personal interest motives: Paving the way for the family's future
In addition to political and economic considerations, the issuance of meme coins by the Trump couple may also be motivated by personal interests.
5.1 Accumulation of family wealth
The Trump Organization is likely to directly benefit from the success of meme coins, providing new avenues for wealth accumulation for the Trump family.
Long-term legacy: The issuance of meme coins is not only a short-term economic gain but may also become part of the Trump family brand, leaving a long-term economic and social impact for future generations.
5.2 Melania's independent brand
The issuance of Melania Coin signifies her attempt to establish her own independent brand image, rather than merely being an 'appendage' to Trump. By issuing meme coins, she can build her influence in the cryptocurrency and art sectors.
Essentially, the coins issued by the Trump family are highly centralized, not decentralized. Riding the wave is fine, but remember to run.
