Thinking about Trump’s issuance of Trump Coin: Is it a feat or a self-imposed prison?

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Reprinted from panewslab

01/20/2025·2days ago

Author: RM , crypto KOL

Compiled by: Felix, PANews

As Trump prepared to take office as President of the United States on Monday (January 20, local time), he issued his personal Memecoin “Trump”. CIC Digital LLC and Fight Fight Fight LLC, which was founded in Delaware earlier this month, own 80% of the tokens. After the token was issued, many people praised it, but it was also criticized by many well-known people.

Crypto KOL RM published an article analyzing Trump’s currency issuance incident. He believes that the currency issuance may not be the way that most people realize that he can get a lot of benefits from it, and there is also a certain “bundling” behind it. The following are the content details:

There’s no news right now that’s as captivating as soon-to-be President Trump’s launch of memecoin. I personally do not hold any memecoin, and to be honest, I cannot fully understand its subsequent effects. We were sailing through uncharted seas and the moment felt unprecedented, and it was hard to fathom how he or his team could fully comprehend what had just happened.

Cryptocurrencies are fascinating because of their decentralized network effects. This interest leads 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 system that lacks trust, it is crucial to reimagine the concept of trust. I've had the privilege of working on performance-based capital projects, building permissionless app stores to communicate trust, and experimenting with how reputation can enhance social experiences. What's the gain? In a decentralized, permissionless, censorship-resistant world, how trust is measured and expressed is paramount.

Let’s get back to the topic of Trump coins. SocialFi is a place for creators to tokenize themselves through social tokens that recur in every crypto cycle. But this time it’s different: the token has launched, its price has soared, and it’s tied to a figure who, by the time you read this, will likely once again be the most powerful political leader in the world.

While their website claims to have "no official connection" to politics or Trump's personality, in the meme world, that's laughable. Ideology, identity and branding are now directly linked to price. Trust depends on market makers, speculators and the hype cycle.

The meteoric rise of Trump Coin opens up endless possibilities. Could we witness the first trillion-dollar person whose token’s market value is tied to one person? How does one's self-worth and public image change when tied to a live price chart?

Also, since 80% of the tokens are controlled by one entity, will there be a maximum rug pull? Does selling mean losing confidence in yourself? This is a twisted philosophical puzzle in the internet celebrity era. have fun.

Fans hold 20% / individuals hold 80%

Personal tokens traditionally allocate a larger share to the community, letting them define your value and preventing single points of failure. But it also means that your concept may be bigger than yourself. Your ideas may outlast you as a person. Trump Coin flips this on its head with an 80% personal allocation, making it difficult for him to exit gracefully. Selling means destroying your community, which often destroys your image as a brand. (But it’s important to note that Trump appears to be playing by different rules).

I hope others will follow suit. If Trump coins soar, there seems to be nothing stopping celebrities from all over the world from dabbling in memes. This could trigger a wave of personality-driven memecoins. Historically, “creator economics” have often failed because attention is predatory, causing creators to burn out in the pursuit of dopamine and audience. At 80% locked, you have to keep delivering or your community and token price will turn against you. It's a high-stakes dance: get them involved or face huge adverse consequences.

Personally, it must be psychologically exhausting to think of your "worth" as a volatile stock. Imagine extending that to the presidency. One day, your market cap soars; the next day, an unpopular move crashes the token. It's like living in an episode of Black Mirror, where "market cap" equals self-worth and "24-hour volume" measures correlation.

This dynamic extends to the broader creator economy. If fans hold 20% and you hold 80%, you are tied. You can't exit or transition without alienating your supporters, damaging your net worth, and quite possibly your self-esteem. It forces you to either maintain the status quo or increase your efforts and risk burnout.

Reputation comes at a price these days

Is this the most ingenious social experiment in the world, rewriting the landscape of power, branding and money, or is it an unexpected time bomb that threatens the president's credibility? Unlike stock reactions to politics, directly monetizing one's image allows reputation to be bought and sold in real time.

I have always believed that reputation can buy you money, but money cannot buy you reputation. We'll see this script put to the test in complex new ways.

Ironically, 80% of strategies may empower the community by trapping token issuers. You can't sell without anyone noticing, and every move affects the price. While creators have the best interest, stopping the hype hurts investors.

The massive distribution of Trump coins enforces a new level of accountability. Unlocking tokens and selling them would signal a loss of confidence in the meme and themselves, which could lead to political or reputational backlash. Insiders must exit cautiously to avoid a collapse; sell-offs can trigger a chain reaction.

This is new territory for SocialFi, at least at this scale. Did Trump accidentally create the only way to hold his followers accountable to him? Memecoins now act as a reputation mechanism. Holding 80% of the tokens means huge responsibilities and obligations. Trying to sneak in on the sidelines will allow new whales to take advantage of your image. To sell it all is to give up. Not getting more extreme won't raise its price. This is a trap.

so?

I'm intrigued by this development, but more curious about how imitators will respond. Are you prepared to have your value fluctuate with every public move? Will you betray your community in exchange for payback, or will you continue to inflate the balloon and hope it never pops? Are you sacrificing your personal freedom to appease believers and being forced to cash out incrementally without losing value? This is the new face of autonomy – living on price. Interestingly, you may now have to pay unrealized gains taxes on your self-worth: you need to sell yourself to a community to be forced to serve.

Trump Coin thrusts us into an era where political identity, personal reputation, and memecoin speculation merge in real time.

Personally, I don’t think you should tokenize yourself. We are here to govern ourselves, not to be enslaved. While an 80% allocation feels good, remember the old saying that Uncle Ben once said: “With more allocation comes greater responsibility, otherwise you will face huge consequences.” risk."

Related Reading: TRUMP Xing, King Solana, Behind the President’s Coin Issuance: Who is the winner and who is benefiting? What impact will it have on the crypto market?

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