On January 18, 2025, elected President Donald Trump announced the launch of his personal meme coin TRUMP on his social media platform Truth Social. This move not only triggered violent fluctuations in the cryptocurrency market but also blurred the boundaries between politics and finance like never before. Here is a comprehensive analysis based on multiple sources:

I. Issuance background and market performance: From 'Shitcoin' to a market value of billions

1. Issuance mechanism and distribution controversies

The total supply of TRUMP tokens is 1 billion, with 80% held by Trump's affiliated companies CIC Digital LLC and Fight Fight Fight LLC, which plan to gradually unlock the tokens over the next three years. This highly concentrated token distribution model has raised market concerns about 'insider manipulation' and 'covert corruption'. For example, on-chain data shows a connection between token owner addresses and cryptocurrency scam calls, and family members of Trump subsequently launched fork coins (such as Melania Coin) to further divert market funds.

2. Price volatility and market frenzy

TRUMP Coin opened at $0.1824 and surged to $38.33 within 12 hours, an increase of over 20,000%, with its market value temporarily exceeding $30 billion, far surpassing the valuation of Trump's media technology group (DJT). Despite severe price fluctuations in the short term (for instance, dropping from over $20 to $19.6 after February 14), its market popularity continues to attract large investors, such as one address profiting over $12 million through TRUMP trading.

II. The symbiotic relationship between politics and capital

1. Trump's shift in crypto policy

Trump has publicly criticized cryptocurrencies as 'frauds', but during the 2024 campaign, he reversed his stance, promising to make America the 'global crypto capital' and nominating cryptocurrency advocate Paul Atkins to succeed the SEC chairman. The issuance of TRUMP Coin is seen as a 'testing ground' for his policy implementation, and it may even indirectly raise political funds through token sales.

2. Wealth effect and legitimacy controversy

With the explosive rise of TRUMP Coin, Donald Trump's personal net worth increased by $28 billion overnight, but the legitimacy of the source of his wealth has been questioned. The Campaign Legal Center accused him of 'cashing in on the presidency', while the launch of the fork coin has been criticized as 'family-style harvesting'. Additionally, although the token lock-up mechanism temporarily alleviates selling pressure, the unlocking plan for the next three years could become a long-term bearish factor.

III. Market impact and industry reflections

1. Liquidity siphoning and regulatory challenges

The insane performance of TRUMP Coin has siphoned off a large amount of liquidity from the crypto market, marginalizing other projects (such as AI Agent tokens). Meanwhile, its legitimacy controversy has exposed regulatory gaps: the SEC has not clearly classified meme coins as securities, and Trump's team may further blur regulatory boundaries through policy loosening.

2. Paradigm shift in the crypto market

Former Citigroup investment officer Jeff Dorman pointed out that TRUMP Coin validates the potential of tokens as 'capital formation tools', and in the future, municipal agencies, universities, and even companies may follow suit in issuing tokens, pushing blockchain applications from 'crypto-native' to 'mainstream entities'. However, this trend may also exacerbate market bubbles, similar to the risks of 'non-mandatory errors' warned by Bloomberg analysts.

IV. Risk warnings and future outlook

1. Short-term risks: High volatility and liquidity traps

The price of TRUMP Coin is highly susceptible to social media hype and internal sell-offs. For example, the launch of the fork coin Trump2 caused a rapid drop in TRUMP Coin's price, while the low liquidity on small exchanges may exacerbate price manipulation.

2. Long-term concerns: Regulation and moral boundaries

If the SEC intervenes or the Trump team sells the tokens, it could lead to the coin's price collapsing to zero. Furthermore, the combination of token issuance and political power could trigger systemic corruption, impacting the U.S. political donation system.#特朗普总统币