Trump Coin: The Transformation from Meme Coin to Financial Asset
Comment / Author: Zhiqiang / February 5, 2025
Introduction: The Intersection of Politics and Cryptocurrency
In reading Mr. Zhu Weisha's great work (Speculations on Trump's Coin Offering - An Analysis of the Valuation Logic Behind Meme Coins), Mr. Zhu deeply analyzes the market performance, valuation logic, and challenges of 'Trump Coin' ($TRUMP) issued by the Trump team in January 2025.
Mr. Zhu pointed out that Trump Coin’s market value reached several billion dollars shortly after its issuance, but its valuation mainly relies on market sentiment and Trump's personal brand, lacking long-term value support. He compared Trump Coin with other meme coins such as Dogecoin and SHIB, analyzing the relationship between its market value and holding addresses, and believes its current valuation is too high and may face adjustments in the future.
The article explores the valuation logic of meme coins: short-term driven by emotional value, while long-term relies on intangible assets and application scenario construction. Mr. Zhu believes that the long-term success of Trump Coin depends on whether the team can establish practical application scenarios, and suggests integrating it with other commercial projects (such as Truth Social) to enhance long-term value.
Finally, Mr. Zhu also summarized the market status and challenges of meme coins in the article, and offered prospects for the future development of Trump Coin. The decentralization of cryptocurrency contrasts sharply with the high centralization of politics, and the emergence of Trump Coin is a reflection of this collision. Supporters hope it will become a financial tool that influences political decisions, even for political fundraising, but its long-term viability and the path from meme coin to a real digital currency is fraught with challenges.
This article attempts to summarize Mr. Zhu's main points while reflecting on the future trend of Trump Coin through the development path of a non-chain token, DW20.
1. The Rise and Challenges of Trump Coin
After the launch of Trump Coin, it quickly attracted Trump supporters, becoming a symbol of digital politics, with social media dissemination causing its price to rise rapidly. However, like all meme coins, it faces the following challenges:
· Highly speculative, lacking intrinsic value: The price is mainly determined by market sentiment rather than actual application scenarios.
· Political Risks: Trump's influence fluctuates greatly, and his loss of power or change in stance could lead to a sharp decline in coin prices.
· Insufficient Community Building: Most holders are speculators, lacking a stable governance and development mechanism. How to build a strong community is key to the long-term survival of Trump Coin, for which successful crypto community experiences need to be referenced.
2. How to Build a Strong Community for Trump Coin?
— Learning from the Successful Experiences of Crypto Communities Successful crypto communities usually rely on:
1. Decentralized Governance: Like Bitcoin and Ethereum, relying on a transparent governance model rather than personal cult.
2. Incentive Mechanism: Encourage long-term holders to contribute through token economics.
3. A Clear Vision: Beyond Short-term Speculation, Forming Long-term Sustainable Goals. Mr. Zhu also provides valuable perspectives in (The Similarities and Differences Between Companies and Crypto Community Mechanisms (Part 1, 2, 3)): · Politicized Community vs. Decentralized Community: Currently, the Trump Coin community relies more on political sentiment than on a true decentralized mechanism. To ensure long-term development, a more robust governance structure should be established, such as a Decentralized Autonomous Organization (DAO). · How to Establish a Solid Community for Meme Coins?: The experiences of Dogecoin and SHIB indicate that long-term community incentives and developer support are crucial. · How to Establish Faith: Bitcoin's success lies in its decentralized belief rather than reliance on individual leaders. Trump Coin needs to go beyond personal branding and establish a broader financial or technological vision.
3. From Meme Coin to Standard Currency
DW20, as another meme coin case, has a more complete and clear design than Trump Coin, making it more likely to become a Bitcoin standard currency (see Mr. Zhu's team white paper (Realization of DW20 Decentralized Standard Currency)).
1. Limitations of existing meme coins · Lack of value support, prices are prone to severe fluctuations. · Market demand is unstable, relying solely on social media hype makes it difficult to form long-term consensus. · Lack of practical application, making it hard to enter the mainstream financial system.
2. A three-step approach to becoming a decentralized standard currency (DW20 case) The design concept of DW20 can provide a reference for Trump Coin: · Phase One: Meme Coin Phase (Value Discovery Period): Acquire early users through an airdrop mechanism, expand consensus, and experience speculative fluctuations. · Phase Two: Stable Coin Phase: Achieve market auto-regulation through Bitcoin collateral issuance, stabilizing the price around $1, while employing market maker mechanisms and stabilization funds to control fluctuations. · Phase Three: Standard Currency Phase: Become a global benchmark for commodity pricing, entering the Bitcoin standard financial system and ultimately replacing the dollar's role as a standard currency.
3. The Path of Trump Coin as a Standard Currency If Trump Coin wants to achieve a similar transformation, it can consider several factors (for a detailed discussion, see another article (Is Trump Coin Merely Speculation? Or the Prelude to a Global Political Financial Revolution?)):
· How Trump Coin can monetize its intangible assets (the Trump brand and political influence) to create a unique political financial landscape by investing in other digital currencies, ultimately transforming from a meme coin to a real financial asset, and potentially giving rise to a new decentralized political financial system. · Allow users to stake for other financial rewards, enhancing the long-term holding value. By combining real earnings from investment returns, advertising revenue, and lending interest, a healthy reward system can be established, while also adopting a buyback and destruction mechanism to reduce market inflation pressure and enhance price stability. Gradually reduce the rewards for new coin issuance so that the value of Trump Coin comes from market demand rather than purely from inflation mechanisms. · Form an application loop in political fundraising and community voting to enhance its financial attributes.
· Exploring the Path of Community Governance Four, Future Prospects for Trump Coin Currently, Trump Coin is still in a phase driven by speculation and sentiment, and its sustainable development depends on community building, the realization of token value, and the evolution of the global cryptocurrency ecosystem. By learning from decentralized governance models and the standard currency mechanism of DW20, Trump Coin may evolve from a meme coin into a real financial asset, potentially opening up a new model of political and financial integration in the future. However, the future of Trump Coin is not a smooth path, but a game of politics, finance, and technology. Based on current trends, the following possible development paths can be proposed:
1. Becoming the Political Infrastructure of the Web 3.0 Era Trump Coin is not just a meme coin; it could also become a form of political infrastructure in the Web 3.0 era: · Political fundraising tool: In the future, Trump Coin can serve as a transparent political fundraising tool, making the flow of political funds more public and traceable. · Global political influence: If Trump Coin can gain adoption on an international scale, it may initiate a global political and economic experiment, influencing the political and electoral patterns of other countries. · On-chain social credit system: Leveraging the immutability of blockchain, Trump Coin can build a political credit system based on Web 3.0, allowing supporters to gain some form of on-chain identity verification, influencing future political decisions.
2. Future Challenges and Risks Although Trump Coin may evolve from a meme coin to a true financial asset, the future remains full of challenges: · Market Regulation and Legal Compliance: Governments worldwide may impose stricter regulations on politicized cryptocurrencies, even banning their use in political elections. · Difficulty of Implementing Decentralized Governance: If Trump Coin wants to establish a decentralized community, it needs to move away from over-reliance on Trump's personal influence, but the effectiveness of community governance remains unknown. · Financial Market Volatility Risk: Without a stable value support mechanism, Trump Coin may still face severe market fluctuations, making it hard to enter the mainstream financial system.
Final Outlook: The Fate of Trump Coin The success of Trump Coin depends not only on political aura but also on a solid financial system and community consensus. In the future, it may develop in one of three different directions:
1. Becoming a true financial asset, gradually evolving into a stable political financial tool that complements other digital assets such as Bitcoin and stablecoins;
2. Maintain meme coin attributes, relying on social media popularity, constantly going through speculative cycles but unable to enter the mainstream financial system;
3. Perishing due to regulatory issues or declining market confidence, ultimately being eliminated by the market, becoming a brief political financial experiment in history. Regardless, the emergence of Trump Coin has opened up a new possibility, blending politics, finance, and decentralized technology. This is not just an experiment with a token, but a future exploration of power, capital, and technology.
Original link
#Trump #Meme @DW20 @songht @zhueisha2
