Author: RM, Crypto KOL

Compiled by: Felix, PANews

As Trump prepares to take office as President of the United States on Monday (January 20 local time), a personal Memecoin "Trump" has been issued. CIC Digital LLC and Fight Fight Fight LLC, which was established in Delaware earlier this month, own 80% of the tokens. After the token issuance, many people praised it, but it also received criticism from many well-known figures.

Crypto KOL RM published an article to analyze the event of Trump issuing coins, believing that the issuance may not bring as much benefit as most people perceive, and there are certain "bundling" behind it. The details are as follows:

There is no news more captivating right now than the soon-to-be President of the United States, Trump, launching a memecoin. I don't personally hold any memecoins, and to be honest, I can't fully understand their subsequent effects. We are sailing in uncharted waters, and this moment feels unprecedented, and it's hard to understand how he or his team could fully comprehend what just happened.

What makes cryptocurrencies fascinating is their decentralized network effects. This interest has led me to explore social graphs, new market structures, capital and community formation, and reputation systems.

Reputation in the crypto space is particularly fascinating. In a trustless system, reimagining the concept of trust is crucial. I've had the privilege of participating in performance-based capital projects, building permissionless app stores to convey trust, and experimenting with how reputation can enhance social experiences. The takeaway? In a decentralized, permissionless, censorship-resistant world, how to measure and express trust is paramount.

Getting back to the Trump coin. SocialFi is where creators tokenize themselves, with social tokens recurring in each crypto cycle. But this time it's different: the token has already launched, the price has skyrocketed, and it's tied to a figure who may very well be the world's most powerful political leader again by the time you read this article.

While their website claims no "official affiliation" with politics or Trump's personality, in the meme world, this is laughable. Ideology, identity, and branding are now directly tied to price. Trust depends on market makers, speculators, and hype cycles.

The rapid rise of the Trump coin opens up endless possibilities. Can we witness the first trillionaire, whose token's market value is tied to an individual? How will a person's self-worth and public image change when linked to real-time price charts? Furthermore, with 80% of the tokens controlled by an entity, will this create the ultimate Rug pull? Does selling out mean losing faith in oneself? This is a twisted philosophical riddle of the influencer era. Have fun.

20% Held by Fans / 80% Held Personally

Personal tokens have traditionally allocated a larger share to the community, allowing them to define your value and prevent single points of failure. But it also means your concept may be bigger than you. Your ideas may outlive you. The Trump coin upends this with an 80% personal allocation, making it difficult for him to exit gracefully. Selling out means destroying your community, which usually destroys your brand image. (But it seems Trump follows different rules.)

I hope others will emulate this. If the Trump coin skyrockets, it seems nothing can stop various celebrities from venturing into memes. This could trigger a wave of personality-driven memecoins. Historically, the "creator economy" often fails because attention is predatory, causing creators to burn out chasing dopamine and audiences. With 80% locked, you must constantly deliver, or your community and token price will turn against you. It's a high-risk dance: get them involved, or face severe consequences.

Personally, viewing your "worth" as an unstable stock will definitely be psychologically exhausting. Imagine extending this to the presidency. One day, your market cap soars; the next, an unpopular move causes the token to crash. It's like living in an episode of "Black Mirror," where "market cap" equals self-worth and "24-hour trading volume" measures relevance.

This dynamic extends to the broader creator economy. If fans hold 20% and you hold 80%, you're shackled. You can't exit or pivot without alienating supporters, damaging your net worth, and likely your self-esteem. It forces you to either maintain the status quo or double down, risking burnout.

Reputation Now Comes at a Cost

Is this the most ingenious social experiment, rewriting the power, branding, and monetary landscape, or an accidental time bomb threatening the president's reputation? Unlike stocks' reaction to politics, directly monetizing personal image allows real-time buying and selling of reputation.

I've always believed that reputation can bring you money, but money can't buy you reputation. We'll see this script tested in complex new ways.

Ironically, the 80% strategy may empower the community by trapping the token issuer. You can't sell off unnoticed, and every move impacts the price. While the creator holds the most interest, stopping the hype will hurt investors.

The Trump coin's heavy allocation enforces a new accountability. Unlocking tokens and selling will signal a loss of faith in the meme and oneself, inviting political or reputational backlash. Insiders must exit cautiously to avoid a collapse; selling will trigger a domino effect.

For SocialFi, this is a whole new frontier, at least at this scale. Did Trump accidentally create the only way for his followers to hold him accountable? Memecoins now serve as reputation mechanisms. Holding 80% of the tokens means immense responsibility and obligation. Trying to quietly offload off-market will let new whales leverage your image. Dumping it all is giving up. Not becoming more extreme won't increase its price. It's a trap.

So?

I'm intrigued by this development, but more curious about how imitators will handle it. Are you ready for your worth to fluctuate with every public action? Will you betray your community for returns, or keep inflating the balloon, hoping it never pops? Will you sacrifice personal freedom to appease believers, forced to cash out gradually without devaluing? This is a new face of self-governance - living by the price. Interestingly, you may now need to pay unrealized gains tax on your self-worth: you have to sell yourself to the community and be compelled to serve.

The Trump coin has thrust us into an era where political identity, personal reputation, and memecoin speculation are fused in real-time.

Personally, I don't think you should tokenize yourself. We came here for self-sovereignty, not enslavement. While the 80% allocation feels good, remember what Uncle Ben (note: from the Spider-Man movie) once said: "With great power comes great responsibility, or you'll face great risk."

Further reading: TRUMP Rises, Solana Rules, Behind the President's Coin: Who are the Winners and Beneficiaries? What Impact on the Crypto Market?