Zhu Weisha January 25, 2025

The previous article (Valuation Logic Behind Meme Coins from the Issuance of Trump Coin (Part 1)) pointed out that if the Trump Coin team lacks follow-up actions and relies solely on President Trump's personal brand and a simple white paper, its price may struggle to break previous highs and may even face a continuous decline risk. This phenomenon aligns with the basic laws of meme coin development.

Meme coins often gain attention due to their 'unconventionality' and 'innovation', while the success of entrepreneurs lies in their ability to break conventions. For Trump Coin, to achieve further price increases, a brand new model must be introduced. So, will Trump Coin adopt some innovative means? What might the Trump team's new model be? This is worth bold speculation and in-depth discussion.

1. What did President Trump see?

President Trump owns a publicly traded media company—Trump Media & Technology Group (DJT), with a shareholding ratio of 53%. The company’s Truth Social was initially established to break the mainstream media's blockade on President Trump's voice. However, given the maturity of the current social media market, the likelihood of Truth Social standing out in this field is low. Although Truth Social's valuation is currently about $7.3 billion and Trump Coin's market cap is $6.6 billion—quite similar—the two differ significantly in cash flow: Truth Social has negative cash flow, while Trump Coin achieves positive cash flow through token sales.

In fact, President Trump has long attempted to explore new profit models in the business field, such as selling Trump-branded shoes and NFTs, and has earned tens of millions of dollars in the cryptocurrency field. Compared to the fiercely competitive traditional internet media market, the cryptocurrency market is evidently easier to generate revenue. This creates a stark contrast for Trump regarding the difficulties of internet media and the relative ease of the cryptocurrency field.

Some articles state that the user base of Truth Social is about 4 million, which is not significant in the internet media industry. However, if these users can be converted into holders of Trump Coin, nearly 5 million real users could support a market cap of up to $50 billion for Trump Coin. This represents two different valuation logics, with significant price differences.

In a sense, the historic mission of Truth Social has been completed, and its current valuation may be overestimated. To achieve further growth in the future, mergers and acquisitions may be the most realistic path. If Truth Social could acquire platforms like Douyin or even just hold a stake, it could lead to earth-shattering changes.

Interestingly, among the invited guests at Trump's 'inauguration' were several world-class tech giants from the U.S., with Douyin's Zhou Shouzi being the only professional manager. This arrangement seems counterintuitive but is thought-provoking. In addition, Trump once requested the Supreme Court to delay the ruling on Douyin for 75 days, while the issuance of Trump Coin clearly stated that the tokens would be unlocked for the first time in three months. The coincidences of these timelines inevitably lead one to ponder whether there is some connection between the two.

Further reflection shows that Trump was once adamant about banning Douyin during his first term, but now seems to have shifted to 'allowing' it, which appears related to the merger prospects of Truth Social. Connecting Douyin with Truth Social may uncover opportunities for the latter's market cap to soar. However, such operations are not particularly clever; even ordinary people could think of them. Given President Trump's consistent style, this kind of mediocre strategy obviously fails to reflect the vision of a 'chosen one.' Therefore, Trump may have a larger layout in mind.

On January 17, 2025, Trump Coin suddenly emerged and shook the world. This aligns with President Trump's personality, creating an incomprehensible idea. The issuance of Trump Coin seems to have been hurried. Why issue the coin during China's time zone, while Americans are asleep? It is out of concern that it may not be distributed, and the token price may not rise high enough to create a sensational effect. With a sensational effect comes attention, which can initiate a major market movement at any time. Trump believes the coin issuance was very successful. Indeed, well done! One could speculate about who the operator behind this is.

Looking at all these connections, Trump Coin is the most important link in the entire event. In three months, the tokens will be released. Who will buy this coin? President Trump's intangible asset realization could surpass the entire Trump Group's assets by several times. He has seized the extremely overvalued cryptocurrency market.

So the remaining task is how to tell the story of Trump Coin well. Tell a story that replaces the old era with the new era, a story that is imaginative enough. Of course, it should be something that everyone hasn't heard, something new and reasonable. No need to think too hard about what he wants to say.

2. The unconventional Trump.

Focusing on the community.

In the series of articles 'What is the Internet Era', a viewpoint was proposed: For nearly a thousand years, humanity has experienced the transitions from the agricultural era, industrial era, to the internet era. In the agricultural era, land was the core resource; in the industrial era, capital determined advantages; and in the internet era, the real advantage lies in who possesses more 'people'.

The advantages of the internet are reflected in communities. The largest community in the world is Facebook, claiming to be a community of 3 billion users. However, its community has not solved the question posed by Kevin Kelly in the Web1 era. Kevin Kelly's point is that in the internet age, we need to address the issue of customers being both consumers and contributors. Facebook, a 'half-broken' community, is thriving while giants sweep away all competition.

However, neither Web1 communities nor Web2 groups have completely resolved the contradiction of 'users being both consumers and contributors' in the internet age. It wasn't until the rise of Web3 that communities linked by tokens emerged, known as cryptocurrency communities. Cryptocurrency communities are not merely interest groups, nor are they residential communities or religious communities. Their distinctions lie in the different bonds within the community: cryptocurrency communities use tokens as bonds, center around narratives, and hold rising token prices as faith. With the token bond, employees, contributors, and users form a triad, naturally resolving Kevin Kelly's question. The most powerful aspect is that customers possess tokens, giving them financial attributes; added to the characteristics of encryption, the valuation soars.

In the long run, meme coins are among the worst in cryptocurrency valuations and cannot be compared with clearly profitable cryptocurrency projects. Even so, Dogecoin's valuation is much higher than centralized exchange Binance's. Dogecoin belongs to Web3, while Binance does not. Where can one reason this? This is reality. Such a good opportunity will naturally be utilized by those with awareness.

The emergence of meme coins is a product of the exploration of cryptocurrency communities. Measuring community value with meme coins has only just begun; we have not yet found the correct measurement methods, narrative methods, and direct monetization means. Due to inaccuracies in early pricing, it is normal for the market to show pricing premiums, and price corrections can also be quite rapid.

The internet era has introduced the community as an organizational form, which has the genes of a company and the characteristics of internet equality. It possesses transparency, equality, speed, and inclusiveness. Different communities have different businesses, but their organizational structures are quite similar. The structure, system, and laws of companies have been stabilized through hundreds of years of exploration. The exploration of internet community structures has just begun. Cryptocurrencies are pioneers of this practice. Pricing was very difficult in the early stages, and chaos was inevitable.

The issuance of Trump Coin is an exploration of the future by a savvy entrepreneur and politician. Amidst widespread criticism, he may be standing at a higher vantage point and not being understood. In this context, the emergence of Trump Coin is not accidental but an important step in exploring future community value. The following two principles are crucial:

1. Doing a good job in the community can lead to monetization.
The community is the foundation of cryptocurrency; without a stable and active community, the value of tokens is difficult to sustain. 2. Community systems should be established on the basis of autonomy.
Autonomy aligns with the internet's equality characteristic and can effectively resolve the contradiction of 'users being both consumers and contributors.' The feasibility of establishing the Trump community with Trump Coin as the link.

First, the issuance of Trump Coin demonstrates that Trump's team understands the forefront of developments in cryptocurrency.

Secondly, Trump's Truth Social is a social software that is not much different from community software and can be transformed into community software with slight modifications. However, it is unclear whether their social team has the Web3 genes. Community software and social software differ only in usage, which can be distinguished by Kevin Kelly.

Thirdly, there is no need to modify the Truth Social software. Directly use our universal community software, which has all the functions needed by the Trump community. The functions described below are those we have implemented, are currently implementing, and a small portion we are preparing to implement. For theories on communities, please refer to the third chapter 'Communities and Indirect Incentives' in the Non-chain System White Paper and the series of articles on the similarities and differences between companies and cryptocurrency communities. Trump Coin and the community do not require a chain and are non-chain. Non-chain refers to using Web3 thinking to solve real-world problems without the need for blockchain. The community is a typical application that does not require a chain.

Fourthly, if airdrops are conducted for Douyin and Truth Social users, it could generate 100 million to 200 million customers in less than a year, thus Trump Coin could overturn the current rules of the cryptocurrency market. Airdrops would be based on $50 per person, locked and released linearly; the algorithm for airdrops can be found in the second chapter on incentives in the Non-chain White Paper.

Fifthly, telling the project idea can quickly gather people; the characteristic of cryptocurrency is the early circulation of tokens, meaning Trump Coin must rely on expanding community traffic and diversified applications for monetization—any reasonable narrative will suffice.

Trump Coin is the token of the Trump community.

At this stage, the main value of Trump Coin lies in its symbolic significance—it represents President Trump's intangible assets. As a commodity, Trump Coin does not possess profitability in the early stages of the community; it is essentially the 'membership token' of the community. Holding Trump Coin means obtaining the qualification to join the community, and this design avoids legal obstacles in the current laws.

As the Trump community continues to develop, with an expanding user base and increasing community activity, profitability models will gradually become evident. However, to ensure the long-term healthy development of the community, the Trump team will need to establish a clear legal framework to guarantee the legality of community operations and tokens.

The Trump community is the link between President Trump and the people.

The entry threshold for the Trump community is set at holding $50 worth of Trump Coin; users below this threshold cannot join the community. The issuance of tokens is completed by an automated mechanism, which can refer to the headcount-based POP universal algorithm proposed in the second chapter of the Non-chain White Paper, ensuring fairness and efficiency. This design both controls the quality of the community and makes it affordable for more people, expanding the coverage of the community.

The Trump community, as a link between the president and the people, fully embodies the governance advantages of the internet era. Through the community, President Trump can communicate directly with members, and the introduction of artificial intelligence further enhances communication efficiency and coverage. This model, which uses the community as a platform and technology as support, not only allows ordinary people to engage in equal dialogue with the president but also completely overturns the inefficiency of traditional 'pyramid' governance structures. I believe President Trump is pioneering this approach—community governance. All bureaucrats are under pressure; decentralization has finally reached them.

Pioneers of the internet era, such as Musk and Lei Jun, have always stood at the forefront of user interaction, demonstrating the essence of internet equality. Through the community, Trump directly connects with the people, undoubtedly upgrading and innovating this model in the field of public governance. The Trump community is not a news community; news is more of a public domain. Both X and Truth Social belong to the public domain. X has created a community but designed it poorly; the traffic diversion to the private domain is not obvious because they do not understand community principles. The Trump community does not need the demand for news; it needs to confront the market to solve problems, focusing more on discussions. Such a community requires management, and community management needs a core team, which can refer to the similarities and differences between companies and cryptocurrency communities (Three).

The Trump community is a combination of public and private domains. It deals with non-relationships, one-way relationships, one-time relationships, weak relationships (light relationships), acquaintances, and friendships. The public domain handles non-relationships, one-way relationships, and one-time relationships. This is no different from X. The theme of the Trump community is weak relationships and acquaintances. Blogs in the Trump community can be freely viewed, but entering the community requires a token link. For discussions about relationships, please refer to the article on the non-chain website 'The Concept of the Internet: Relationships, Nodes, Kinetics, Potential Energy, Network Relationships'.

In Trump's executive order on cryptocurrencies, there is a design for hearings, which is good. It should first be discussed in the community, elect representatives to attend high-level meetings through the community. The existence of the community provides a better grasp for the operations of Musk's Efficiency Department, which he utilizes well with X; however, X is not yet a community product. The community can allow people to delegate and supervise in real time.

The community needs a soul.

A community without a soul is unimaginable, and the soul of the Trump community is undoubtedly President Trump himself. His personal brand, values, and leadership provide a strong cohesion for the community. However, the soul figure cannot always be the only support point. As the community develops, the core team needs to gradually take on the soul role of President Trump, facilitating a smooth transition from 'centralized' to 'decentralized'.

The case of the Bitcoin community provides an important lesson: after Satoshi Nakamoto's departure, the community (Bitcoin forum) gradually lost vitality due to the lack of a succession mechanism. However, the Trump community, by issuing tokens, not only connects members but also offers the possibility of establishing a flexible governance structure. This lays the foundation for the long-term development of the community.

The core team needs checks and balances.

The checks and balances in corporate governance, such as the distribution of power among shareholders, the board of directors, and management, have proven to be scientific and effective after hundreds of years of exploration. This experience provides important references for the governance of the Trump community. However, the advantage of the Trump community lies in its ability to combine the transparency and fairness of cryptocurrencies to create a more efficient system of checks and balances.

The Bitcoin community demonstrates the potential of autonomous systems, with its transparent and fair operating mechanism playing a decisive role. The Trump community can draw on this experience in design by combining the participation of token holders with smart contract technology to achieve decision transparency and decentralized community governance.

Another success factor for Bitcoin is the balance of power between the miners and the developers, which ensures the robustness of the system. Ethereum weakened this balance, and the failure to achieve new highs in token prices serves as a counterexample. For the Trump community, a similar balance of power needs to be designed for the core team to ensure a balance of power on the basis of transparency and fairness, avoiding excessive concentration of power on one side.

Real-time measurement of Trump's governance.

Trump Coin is not only a bond within the Trump community but also a real-time reflection tool for President Trump's governance effectiveness. Just like stock prices reflect a company's value in real-time, the price of Trump Coin dynamically reflects the market's evaluation of Trump's policies.

As of January 25, 2025, the market cap of Trump Coin has fallen to $5.6 billion, ranking it fourth among cryptocurrencies, even below Frog Coin. The market trend corresponds to what I described in my previous article (Valuation Logic Behind Meme Coins from the Issuance of Trump Coin (Part 1)). However, this decline reflects more of the market's misunderstanding of Trump's coin issuance logic.

If the Trump team can enhance the actual value of the tokens through narrative and application extensions, this trend can be completely reversed. From the perspective of President Trump's intangible asset value and the valuation of Truth Social, Trump Coin remains undervalued. Real-time measurement of governance puts pressure on individual coin issuance; its valuation does not require professional assessment but rather market evaluation. The criticisms of token price declines are direct and real-time, prompting President Trump to make changes. Community governance is not easy; it's easy to get on board but hard to get off; President Trump has donned the red dancing shoes.

The profitability model of the Trump community.

The fact that the Bitcoin system does not need to be profitable does not mean that the community does not need to be profitable. The long-term existence of the community requires a clear profit model. Different communities correspond to different models, and the Trump community can achieve profitability in at least the following ways: 1. Token-driven financial ecology: Tokens, as carriers of community value, can form market value through holding and trading.

2. Project investment and commercialization: Community resources 'people' are used for traffic diversion, and there are also advertising revenues. Use some of the funds from selling community tokens for profitable projects to promote token appreciation.

3. Innovative profit model: Drawing from the 'financial e-commerce' model in the third chapter of the Non-chain White Paper, exploring new paths through the logic of 'the wool comes from the pig'.

4. Other models in President Trump's mind: The core advantage of cryptocurrency lies in stimulating community vitality, mobilizing member participation, and promoting token price increases to form belief. The Trump community needs to utilize these characteristics to find a sustainable model that can achieve profitability while maintaining community health.

The power of the community.

The community is a low-cost, high-cohesion organizational form, especially cryptocurrency communities, which combine narrative and belief through tokens to maximize member engagement.
The community is a volunteer organization that does not require expenditures. If the community can achieve the following goals, its power will be immense:

1. Allow members to profit: Let members benefit through token appreciation, participation rewards, and dividends.

2. Provide support: Offer help when members face difficulties to enhance the sense of belonging.

3. Continuous growth: Promote the continuous expansion of the community, leading to a natural increase in token prices, which continuously attracts new members, achieving a positive cycle. Each U.S. election costs up to hundreds of billions of dollars, and if these expenses are converted into community project investments through token purchases, it can both realize token appreciation and further expand influence.

When the number of Trump community members in the U.S. reaches 200 million, it will become a social and political force that cannot be ignored. It will completely change the political ecology and landscape of the U.S., and at that time, opponents will have no choice but to engage. The past election methods will be eliminated. We cannot view President Trump with outdated knowledge and experience; in a word: the Trump community is thriving, and giants sweep away all competition.

I don't know if America will be great again. An organized community may put Trump in an invincible position! Trump will definitely be great again.

Postscript

In the internet era, the community model has profoundly changed the production relations of the industrial era. This transformation cannot be summarized in a few words. A detailed discussion on this topic has been published on the Non-chain website with 800,000 words of related articles. These contents summarize the practical experiences in the cryptocurrency field and attempt to fill the gaps in its systematic theory. While it may be a personal opinion, it serves as a reference for readers interested in gaining deeper insights. This article speculates on President Trump's actions based on community theory, and if I happen to guess one or two things right, it is purely coincidental. Just as I proposed over two years ago to use Bitcoin to solve the U.S. debt issue, it is also a matter of coincidence.

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