"Trump Plays Big With Memecoin: A Costly Lesson for the Crypto Degen Community?"

It's been a great weekend for Donald Trump and his family; they have truly turned the cryptocurrency market into their own personal circus by launching meme coins after meme coins. Every corner of the cryptocurrency social media is filled with fierce debates between 'this will end badly' and investors' optimism that 'Trump is really interested in cryptocurrency'. We are just getting started Since Friday, January 17, we have witnessed the opening of the Crypto Ball event attended by industry leaders, and President-elect Trump and his wife Melania have launched their own memecoin, TRUMP and MELANIA. We cannot deny that in recent months, even in the past three days, some "lucky" investors have made a large amount of money, just as Trump promised during his election campaign. But will the incoming POTUS be concerned about the best interests of the industry? Now you should know better; it's always about business. Memecoin is a dangerous gamble; but what about TRUMP and MELANIA? Some experts in the field, including Ethereum co-founder Vitalik Buterin, have long called memecoins "notorious assets" for their overreliance on social media hype and unstable value fluctuations without any utility. And indeed, looking at the price trends of tokens like DOGE and PEPE, it's hard to argue against that view; their prices rise because memes are trending. Token Trump officially launched on Friday and within 24 hours, its market capitalization skyrocketed to $15 billion. Even Melania's memecoin, which was released about 48 hours later, also witnessed a market capitalization surge of over $5 billion within a few hours of its launch. The TRUMP-supporting community will provide you with dozens of explanations to prove what happened. However, if they conclude anything other than exaggeration for any reason, don't believe them. According to detailed information about tokenomics shared by netizens on social media, both projects have over 80% of the total tokens held in addresses believed to be owned by the development team. If it were any other token or any other individual, these red flags could not be ignored. Questions about utility also have no definite answer Enthusiasm takes away financial benefits Since Trump's election victory in November, the number of new memecoins has surged, as cryptocurrency enthusiasts are looking forward to a more favorable regulatory environment under his administration. However, the timing of the launch of these tokens linked to Trump, just a few hours before his inauguration, is clearly a predatory behavior. The Trump family may also know how the cryptocurrency market reacts to "certain conditions" related to memecoin. This man will assume the responsibility as the 47th President of the United States on Monday. Clearly, he will be restricted from impacting the market in any way. So what does he do? He launches these memecoins as fast as anyone can say pump and dump, and when he steps into the Oval Office, the money is in his pocket. There is a developing pattern with Donald Trump; if a cryptocurrency initiative does not directly benefit him, even if it's the Federal Reserve's Bitcoin reserve, he won't really promote it. The increasing benefits of cryptocurrency for the Trump family If there's anything we learn from the stories of HAWK and Justice for Peanut by Hailey Welch, it's that memecoin is just about fun and games. At least until they're not anymore. The jokes have spread on social media about every member of the Trump family launching meme tokens. It may come a time when it's no longer funny. Both Melania and Trump's memecoins are considered 'digital collectibles,' seen as a representation of their value rather than an investment opportunity. However, critics, including Anthony Scaramucci, Trump's former Director of Communications, have condemned the family's involvement in memecoins, calling it a damaging action to the reputation of the cryptocurrency industry. The launch of Melania coin is causing the collapse of Trump coin. Elon is right, we are living in a simulation. Which coin of the children will work best? Before the inauguration as the leader of the free world and this is what Trump is focused on. Let you know everything you need to know," Scaramucci said on X. For Trump, cryptocurrencies can be related to decentralized finance or technological innovation, but it's all just what the "mainstream media" tells you; it's all about profit. Jonathan Bixby, a cryptocurrency entrepreneur, told Bloomberg that this launch could signal a "banana zone" where tokens backed by celebrities flood the market and that could cause people to lose a lot of money. Gabor Gurbacs, former digital asset strategist of VanEck, also agrees with this view. He shared his thoughts on X, saying that the consequences of these launches "haven't even begun". Parties related to cryptocurrencies should be cautious The release of tokens without a business model or intrinsic value only means one thing: Trump and his family have solidified their prejudice that they turn everything into business. This time, it damages the cryptocurrency industry. Cryptocurrency could just be another way to expand the business empire of the upcoming President of the United States. The general view is that any initiative that does not serve his personal or financial interests is unlikely to go far in his presidential term. The elected president did not attract support from the cryptocurrency community; the cryptocurrency industry would do better if it acknowledges this and focuses on projects that prioritize long-term value and credibility rather than short-term hype. Ultimately, if the cryptocurrency space wants to be taken seriously, it must strike a balance between the skyrocketing price spectacle of popular memecoins and politics, and cryptocurrencies that actually provide utility. Otherwise, we will continue to see lawsuits over massive losses from declared 'pump-and-dump' schemes; a little DYOR will go a long way, everyone.