U.S. President Trump’s decision to issue coins may not be as simple as you think

Recently, Trump posted a Memecoin that caused a global sensation. There are different opinions. However, some media are like weather forecasts. In addition to telling you whether it has gone up or down, and how many people have liquidated their positions, in fact, most people actually think about this matter. It 's too simple, and there may be a deeper intention behind it.
Today we will analyze the logic, motivations and possible impacts of Trump’s currency issuance from multiple angles...

01What is Trump doing by issuing Memecoin?

In recent years, Memecoin released through Trump’s social account and led by the family group affiliated company behind it is not only TRUMP in the past two days, but also personal image NFT on the Ethereum chain and the DeFi platform WLFI project based on Ethereum. , Bitcoin Inscription NFT, etc. Judging from Trump’s friendly “promise” to innovative industries such as encryption during the campaign, these seemingly unrelated encryption projects seem to be “unprofessional” by the Trump team, but when connected in series, they look like A professional behavior that lays out multiple tracks in the encryption field in advance.
The similar reasons for issuing Memecoin, tracing back to its essence, are similar to his logic of gathering support from voters and building a personal brand by selling "MAGA Little Red Riding Hood". Crypto-asset Meme has become a new medium used to maintain supporters, create and connect communities, and explore 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 running these things.

02Why does the president of a country dare to issue coins?

Many people claim that Trump’s Memecoin issuance is a token issued by the president. Strictly speaking, Trump is not the president until he is sworn in and signed at the inauguration ceremony.
Trump and his family group have actually spent a lot of resources and money during his years of politics and preparing for the presidential campaign, and they urgently need to realize returns through various channels . This inauguration is an excellent time. Trump through the President The election has accumulated huge attention and traffic, and the influence of personal brand can be realized in the highlight moments before taking office. From MAGA Little Red Riding Hood to issuing Memecoin, they are all ways to continue their influence.
So, why did Trump choose this time to issue Memecoin? The main thing is safety compliance. The presidential election is a done deal, and there are no longer too many legal risks. Therefore, compared with previous projects such as NFT and WLFI, this time it is already free and there are not too many worries.
Before you officially become the president, you are still an ordinary person under the law, and there are not so many restrictions. It is most appropriate to do this at this highlight moment. Just like "premarital property", the future value of these projects will be generated before taking office as president. , otherwise you will be subject to relevant restrictions after taking office.

03The president issues coins just for harvest? What are the possible consequences?

1) Compliance issues <br>Although some people have begun to criticize Trump for abusing his power, in fact, as mentioned above, his operations before officially taking office also have corresponding exemption clauses in law. Compared with other popular Memes, There is nothing special about it. If everyone is equal, everyone has the right to post their own meme.
The current legal issues surrounding Meme's issuance mainly come from the SEC's securities supervision and litigation, but the SEC chairman has been replaced by a crypto-friendly candidate, who many people call "one of our own." So for now, legal and compliance consequences have been avoided.
2) Moral Issues <br>Trump’s move may be seen as commercializing personal influence or the image of the president, but it is not without precedent. The reason why celebrities such as Musk are reluctant to issue tokens is actually largely due to moral issues. In the past, people who issued tokens later became notorious, and this extreme behavior is also prone to backlash. In short, this is a high-risk but high-reward path that may also lead to a loss of public trust and even long-term reputational risks.
3) The pattern should be bigger <br>Extreme behavior also has its two sides. Although Trump’s behavior is relatively radical, the current situation in the United States is not optimistic in view of the current environment, and the risk of economic recession still exists . At this time, Trump If Pu is generous enough and dares to accept innovation, it is not impossible to take a new path that others have never taken before, maybe he can develop a huge "gold mine", leave a great political achievement or even be famous in history.
4) Why is the crash inevitable?
Sentiment in the crypto market is extremely volatile. Even the market value of real industry concept stocks that have been run by the Trump family for decades is less than 10 billion. However, the emotional Memecoin is not such a long-term accumulated real industry, and it is difficult for it to maintain a high market value for a long time. As the FOMO effect of the market subsides, a sharp adjustment after the price surge is inevitable.

04What impact will it have on the encryption industry?

What the encryption community is most concerned about is its impact on the encryption industry itself. So does this have more benefits than disadvantages, or does the disadvantages outweigh the benefits?
1) Encryption decentralization challenges <br>Some encryption KOLs have come forward to criticize projects involving "highly central" celebrities like Trump, believing that they violate the original intention of encryption decentralization. This criticism also reflects some of the contradictions that have always existed within the encryption community in the face of the participation of centralized organizations and institutions. But having said that, as a natural individual, no matter what his identity is, there is no reason for the open and transparent encryption community to prevent him from participating . Just like the "mining pool" in the Bitcoin node, although it is a more powerful node, although it seems to be centralized, it does not affect that it still has to abide by the rules and become one of many nodes.

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2) Accelerate the exit from the circle <br>Someone posted on social media that the search volume of Crypto has soared to the highest level in four years. This is the highlight moment of the new president of the United States. It has focused global attention here. This incident has caused global concern. The sensational effect has allowed the crypto industry to accelerate out of the circle and gain more exposure . More and more people are understanding and entering the industry. Of course, people who hate the cryptocurrency circle may hate and reject it even more because of the exposure of this matter. .

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3) Improve confidence in encryption-friendly regulation** <br>This incident allowed people to see the Trump family personally participating in the issuance of encryption industry applications and Memes, indicating that Trump has kept his previous commitments to the encryption industry, personally demonstrated his commitment to innovation, and The pursuit of technology and the determination to promote the leading technology industries such as encryption and enhance the confidence of friendly supervision may attract more investors and developers to join this field.

4) Specific Crypto Ecological Impact <br>Trump’s Memecoin directly boosts the Solana ecology, NFT and WLFI DeFi projects are based on the Ethereum and Bitcoin ecology, and the overflow value under the related effects will be transmitted to various crypto tracks. Accelerate application implementation and adoption, further attracting more users and innovative developers.

05 Summary

I believe that most people will be surprised when they first see Trump’s Memecoin post. They subconsciously think that his social account has been stolen. After double confirmation of X’s post, they realize that whether they participate or not, it starts. FOMO.

It has to be said that Trump's "move" is really unexpected and has caused too much controversy. It is still unclear how it will develop in the future, but in any case, his bold attempt will have a great impact on the encryption industry. In terms of accelerating expansion out of the circle and boosting confidence, the advantages definitely outweigh the disadvantages.