Author: Mu Mu, Bai Hua Blockchain

Recently, Trump's launch of a Memecoin has caused a global sensation, with much discussion. However, some media outlets are like weather forecasts, simply telling you whether the price went up or down, and repeating how many people were liquidated. In fact, most people are oversimplifying this matter, as there may be deeper intentions behind it.

Today, we will analyze Trump's logic, motivation, and potential impact of issuing a Token from multiple perspectives...

01 What is Trump doing by issuing a Memecoin?

In recent years, the issuance of Memecoins led by Trump's social media accounts and associated family group companies has not only included the recent TRUMP, but also Ethereum-based personal NFTs, an Ethereum-based DeFi platform WLFI, and Bitcoin inscription NFTs. Compared to Trump's "friendly" attitude towards crypto and other innovative industries during his campaign, these seemingly unrelated crypto projects, while appearing "unprofessional" in their issuance, are actually a professional pre-deployment across multiple crypto tracks.

The reason for issuing a Memecoin is similar to his previous strategy of selling "MAGA hats" to rally voter support and build his personal brand. Crypto assets and Memes have become new media for maintaining his supporter base, creating and connecting communities, and exploring the boundaries of family financial growth and technological innovation.

It is not difficult to guess that there are "experts" (professional teams) behind the Trump family operating these matters.

02 Why does a head of state dare to issue a Token?

Many people call Trump's Memecoin issuance an act of a president issuing a Token, but strictly speaking, Trump was not yet the president before his inauguration ceremony.

Trump and his family group have actually invested a lot of resources and funds during his many years in politics and preparing for the presidential campaign, and urgently need to realize returns through various channels. The upcoming inauguration ceremony is an excellent opportunity for Trump to monetize his personal brand influence accumulated during the presidential election. From MAGA hats to Memecoin issuance, they are all means to extend his influence.

So why did Trump choose this time to issue a Memecoin? The main reason is safety and compliance. The presidential election has already been decided, so there is not much legal risk. Compared to his previous NFT and WLFI projects, this Memecoin issuance is more open, with fewer concerns.

Before officially becoming president, he was still a regular person legally, without so many constraints. This high-profile moment is the most suitable time to do this, just like "pre-marital property". The value generated by these projects in the future will be created before he takes office, otherwise he would be subject to relevant constraints after taking office.

03 Is the president issuing a Token just for profit? What consequences might it bring?

1) Compliance issues

Although some have already criticized Trump for abusing his power, as mentioned earlier, his pre-inauguration operations have corresponding exemptions in the law. Compared to other popular Memes, there is nothing particularly special about it. If we believe in equality, anyone has the right to issue their own Meme.

The current legal issues with Meme issuance mainly come from SEC securities regulation and litigation. But the new SEC chairman is crypto-friendly, the so-called "one of our own". So for now, the legal and compliance consequences have been largely avoided.

2) Moral issues

Trump's move may be seen as commercializing his personal influence or presidential image, but this is not without precedent. The reason why figures like Musk are unwilling to issue Tokens is largely due to moral issues - the reputation of those who have previously issued Tokens has often been tarnished. In short, this is a high-risk but high-return path, and such behavior may also lead to a loss of public trust and even long-term reputational risks.

3) Think big

Extreme behavior also has its two-sided nature. Although Trump's behavior is quite aggressive, given the current unfavorable economic situation in the US with recession risks, Trump's willingness to take risks and embrace innovation may open up a huge "gold mine", leaving a major political achievement or even a lasting legacy, which is not impossible.

4) Why is a crash inevitable?

The crypto market is highly volatile in sentiment. Even the market cap of Trump family's decades-old traditional industry concept stocks is not in the billions, but the sentiment-driven Memecoin cannot maintain a high market cap in the long run. As the market's FOMO effect subsides, a sharp correction after a price surge is inevitable.

04 What impact will it have on the crypto industry?

The crypto community is most concerned about the impact on the crypto industry itself. Is the benefit greater than the harm, or vice versa?

1) Challenge to crypto decentralization

Some crypto KOLs have criticized Trump's "highly centralized" celebrity-backed project, arguing that it violates the decentralization principle of crypto. This criticism also reflects the internal contradictions the crypto community has always faced in the face of centralized organizations and institutions participating. But again, as a natural individual, regardless of its identity, the open and transparent crypto community has no reason to exclude its participation. Just like the "mining pools" in the Bitcoin network, although they are more powerful nodes, they still have to abide by the rules and become one of the many nodes.

MicroStrategy founder calls on the outgoing SEC chairman to come back and "regulate"

2) Accelerate mainstream adoption

Some social media posts claim that the search volume for "Crypto" has surged to the highest level in 4 years. This is the highlight moment for the new US president, which has drawn global attention to this, allowing the crypto industry to accelerate mainstream adoption and gain more exposure. More and more people are learning about and entering the industry, of course, those who dislike the crypto space may become even more hostile and rejective due to this event.

3) Boost confidence in crypto-friendly regulation

This event shows that the Trump family is personally participating in crypto applications and Meme issuance, indicating that Trump has kept his previous promises to the crypto industry, personally demonstrating his determination to pursue innovation and drive the leading development of crypto and other tech industries, which may boost confidence in crypto-friendly regulation and attract more investors and developers to join this field.

4) Specific impact on the crypto ecosystem

Trump's Memecoin directly boosts the Solana ecosystem, while the NFT and WLFI DeFi projects are based on Ethereum and Bitcoin ecosystems. The value spillover effects will be transmitted to various crypto tracks, accelerating application deployment and adoption, and attracting more users and innovative developers to be further drawn in.

Summary 05

Most people would be surprised to see the Memecoin post released by Trump, and would instinctively think that his social media account has been hacked. After the double confirmation of the X post, they would react that whether to participate or not, the FOMO has already begun.

It must be said that Trump's "move" is truly unexpected and has caused a lot of controversy. How it will develop in the future is still unknown, but regardless of how it is said, his bold attempt has accelerated the expansion of the crypto industry and boosted confidence, which is definitely more beneficial than harmful.