These days, the heat around Trump is still simmering in various media. Some even shouted that the crypto ecosystem now only has Bitcoin and Trump.
The reason for this view is that, on the one hand, the participant base influenced by Trump is too large.
Previously, Trump had issued his own Non-Fungible Tokens (NFTs) on Polygon and Bitcoin, but those NFTs did not have as much impact as Trump, mainly because:
- The audience for NFTs is very limited, far less than meme coins that theoretically allow all users with crypto wallets to participate;
- The liquidity of NFTs is not as good as meme coins, which can allow participants to immediately cash in their gains or losses, thus having an immediate impact on the market.
On the other hand, the president's issuance of a coin has broken people's cognition. Everyone is worried that the trend of the crypto ecosystem in the next four years will be highly tied to him.
Why is he so tightly bound?
In the past US government, although officials were appointed by the president, they often had a lot of discretion. But judging from Trump's past style, the discretion of the officials he appointed is probably very limited, and they can be replaced at any time if they do not meet his approval - even the Secretary of State is not immune.
Therefore, the crypto policy of the United States in the next four years can be said to be basically his policy.
And this person who is really formulating the policy is highly uncertain in his actions.
Finally, this person who is influencing the crypto ecosystem is now deeply involved in too many interests in the ecosystem, and will affect various aspects of the entire crypto ecosystem for a considerable period of time.
I have always believed that the biggest driving force of meme coins is emotion, and the duration of emotion is very limited.
Starting from Dogecoin, all the meme coins created so far, only Dogecoin has maintained its heat until today. All other meme coins (including SHIB, which created a myth at the time) have gradually faded from the public eye as the public's emotions have subsided.
The reason why Dogecoin's heat has lasted until now is also because Musk has been constantly "empowering" it to get to where it is today.
The reason why Musk's empowerment can continue to be effective is essentially because he has been making amazing progress and impressive achievements in several disruptive technology industries, and occasionally hinting that he will link the commercial dividends of these industries to Dogecoin.
Now the story of Musk empowering Dogecoin is about to be replayed on Trump empowering Trump.
But there is a big difference between the two empowerments:
Musk's empowerment at most lets people see the potential prospects and potential narratives of Dogecoin - he only affects Dogecoin, at most also carries Bitcoin, but has almost no impact on other areas of the crypto ecosystem.
But Trump's empowerment not only affects the potential prospects and potential narratives of Trump - he will affect the development of various fields of the crypto ecosystem, because his personal views, his position, and the power in his hands will influence the direction of US crypto policy, such as:
- Inclusion of Bitcoin in the US national reserves
- Compliant operation of crypto assets
- Issuance rules for crypto assets
- Tax issues of crypto assets
- Staking issues of Proof of Stake (POS)
...
We can list a long list just by thinking about it.
More complicated is that he has issued his own meme coin, and this coin will inevitably cause major conflicts of interest with the crypto ecosystem in many ways:
A typical phenomenon is the seesaw effect between Trump and other crypto assets in this period: Trump rises, other coins generally fall; Trump falls, other coins recover. Each of these fluctuations affects almost all participants in the crypto ecosystem.
In the future, when his crypto policy and Trump tokens inevitably conflict with each other's interests, how will he handle it?
If previously, the Trump token has brought the widely circulated wealth effect and rags-to-riches stories to the participants in the crypto ecosystem, I think the next thing worth worrying about is what kind of negative impact and emotional fluctuations the Trump token will bring to the crypto ecosystem.
I am particularly concerned that when the interests of the Trump token conflict with the overall interests of the crypto ecosystem, he will make obviously biased decisions, and these decisions will affect the entire crypto ecosystem and the regulatory attitudes of other countries around the world towards the crypto ecosystem in the future.
