Behind Trump’s Meme Coin Issuance: Conflicts of Interest and Regulatory Challenges

In the past two days, Trump's popularity has continued to grow in various media. Many people even shouted that only Bitcoin and Trump are left in the encryption ecosystem.

The reason why there is such a statement, I think, is that the base of participants affected by Trump is too large.

Previously, Trump had issued his own NFTs on Polygon and Bitcoin, but those NFTs did not have such a big impact as Trump. The main reasons may be:

- The audience of NFT is very limited, far less than meme coins that can theoretically allow all users with encrypted wallets to participate;

- The liquidity of NFT is not as good as that of meme coins. It allows participants to cash out their gains or losses immediately and has an immediate impact on the market.

On the other hand, the president’s issuance of currency broke people’s perception. Everyone is worried that the trend of the encryption ecosystem in the next four years will be highly tied to him.

Why is he bound so tightly to one person?

In past U.S. governments, although officials were appointed by the president, they often had greater discretion. Judging from Trump's past behavior, the discretionary power of the officials he appoints may be very limited, and they can be replaced at any time if they do not suit his wishes - even the Secretary of State is not immune.

Therefore, the encryption policy of the United States in the next four years can be said to be basically his policy.

And the person who actually makes policy is extremely uncertain in how he acts.

Finally, this person who affects the encryption ecosystem is now involved in too deep and too large interests in the ecosystem, and will affect all aspects of the entire encryption ecosystem for a long time.

I have always believed that the biggest driving factor of meme coins is emotion, and the time that emotions can last is very limited.

Starting with Dogecoin, of all the meme coins so far, only Dogecoin continues to be popular today. All other meme coins (including SHIB, which created the myth back then) slowly faded out of public view as public sentiment faded.

The reason why Dogecoin’s popularity continues to this day is because of Musk’s continuous “blessing”.

The reason why Musk's blessing continues to work is essentially because he has continuously made amazing progress and impressive performance in several disruptive technology industries at the same time, and from time to time hints that he will bring business dividends and benefits to these industries. Dogecoin peg.

Now the story of Musk’s support of Dogecoin will be repeated when Trump supports Trump.

But there is a big difference between the two blessings:

At most, Musk's blessing allows people to see the possible prospects and potential narratives of Dogecoin ------- He only affects Dogecoin, and at most it brings Bitcoin along with it, but it affects other areas of the encryption ecology. Almost no impact.

But Trump’s support will not only affect Trump’s possible prospects and potential narratives – he will affect the development of all fields of the entire encryption ecosystem, because his personal views, his position, and the power in his hands will affect American encryption. Policy trends, such as:

- Bitcoin included in US national reserves

- Compliance operations for crypto assets

- Issuance rules for crypto assets

- Tax issues for crypto assets

- POS mortgage issues

...

We can name a long list just thinking about it.

To complicate things further, he issued his own meme coin, which will inevitably have major conflicts of interest with the crypto ecosystem in many aspects:

A typical phenomenon is the seesaw effect between Trump and other crypto assets during this period: when Trump rises, other coins generally fall; when Trump falls, other coins resume their rise. Every such fluctuation affects almost all participants in the crypto ecosystem.

How will he deal with the inevitable conflicts of interest between his crypto policies and Trump tokens in the future?

If Trump Coin has previously brought widely circulated wealth effects and get- rich-quick stories to participants in the crypto ecosystem, I think what is more worth worrying about next is what kind of negative impact and impact Trump Coin will have on the crypto ecosystem. Mood swings.

I am particularly worried that when the interests of Trump’s tokens conflict with the overall interests of the crypto ecosystem, he will make obviously biased decisions, which will affect the entire crypto ecosystem and the supervision and regulation of the crypto ecosystem in other countries around the world in the future. manner.