Author: Techub exclusive interpretation
Written by Babywhale, Techub News
How long does it take to go from 0 to 80 billion in market value? US President Trump, who will take office this week, gave the answer: 31 hours. Of course, although calculating the market value based on the price of tokens may not be a method that everyone agrees with, it has to be admitted that Trump's team has created a record in the Web3 field that has never been seen before and may never be seen again. But this record may not have any benefits other than proving Trump's nature as a businessman who only does things for the sake of profit.
I believe everyone has already known the story of these three days. Trump posted a tweet on X to issue the "Official Trump Meme", and it began to rise amid doubts that "X might have been stolen", but as the tweet was not deleted for a long time, and Trump's second son Eric confirmed it through a tweet, the market finally determined that the meme token named TRUMP was indeed issued by the Trump family.
The subsequent development of the plot may have overturned the expectations of everyone inside and outside the Web3 industry. The total amount of 1 billion TRUMPs was only 20% released, and the price began to soar. According to GMGN data, the price of the token rose from $0.18 at 10:00 on Saturday to a high of around $80 around 17:00 yesterday. An impossible task was completed during the weekend.
"Presidential coin issuance" causes controversy
The birth of TRMUP allowed many investors to make considerable profits over the weekend. Major exchanges including Binance also launched spot trading of TRUMP last night, which may also be one of the important driving forces for pushing its price to at least a temporary high.
From the perspective of making money, the US President's issuance of Meme is undoubtedly a recognition and support for Meme itself and even Web3, and it also rewards the on-chain Meme players who stay in front of their computers every day. In fact, the issuance of TRUMP obviously did a lot of work in advance, and projects or works such as Meteora and Moonshot have provided more or less help. Moonshot also said that it gained 400,000 new users in two days, and its App once dominated the Apple Store.
But from another perspective, most onlookers inside and outside the industry gave negative comments:
The article in Bitcoin Magazine made a very direct criticism, saying that "this is nothing more than a self-profiteering scam of pump and dump, which is an unethical behavior, and the investors (or should we say "fans") involved are extremely stupid. The author of the article said that he believes that Trump will not allow Bitcoin to compete with the US dollar, which is precisely the original meaning of Bitcoin's existence, and implied that if Trump really supports Web3, he should not focus on viewing Web3 as a "casino."
The SkyBridge founder believes that Trump's actions are not good for the industry and supports calling it "corrupt behavior."
Even a doctor with 1.5 million followers on YouTube said: "Another president's corruption does not mean you can do the same."
Technology should be free, but not disorderly
Musk once joked in a show that the Animal Protection Association came to him and asked SpaceX to evaluate the possible impact of rocket debris on whales, sharks, etc. that fell into the sea. In order to refute the Animal Protection Association's belief that the noise of rocket launches would affect seals, they even caught a seal and put headphones on it to let it listen to the noise to prove that there was actually no impact.
Silicon Valley tech giants have long complained about excessive regulation, which may be the main reason why Musk decided to set up the government efficiency department "DOGE". American tech giants have always advocated relaxing regulation on technology to improve innovation capabilities, which is understandable, but weak regulation does not mean no rules, otherwise "freedom" will turn into "disorder".
One of the most important points in my understanding of the lack of development of a large number of altcoins in this round is that the US regulators have never clarified what the tokens issued by these projects are. If they are securities in some sense, such as representing the equity of the project, then what is the equity of the project operating company? If there is no way to define the actual meaning of these tokens, it is difficult for large funds to be willing to invest based on the value of the project itself.
On the other hand, should the number of tokens held by the project party be disclosed regularly? Should the financial status of the foundation be disclosed like financial reports? Should the project party disclose when it sells the tokens it holds? Should the possible market manipulation by exchanges, market makers and even some so-called big players be regulated?
These are some very basic questions, but now it seems that I don’t know whether they have also discovered that this is an unsolvable problem or are unwilling to solve it. After all, a market with no supervision except pure fraud is the best tool for capital plunder, just like the early financial market.
In the current market, the actual definition of altcoins is unclear, and their prices are completely unrelated to the value of the project itself. Since this is the case, there is nothing wrong with retail investors choosing to do on-chain PvP.
There is nothing wrong with Trump's behavior of issuing coins. If he can set an example, clarify many ambiguous things in the current cryptocurrency circle, or make everything transparent, then issuing coins is understandable. After all, there is no law in the United States that prohibits the act of issuing coins. But the problem lies in this seemingly "random" issuance of Meme tokens, which seems to tell everyone: you can issue coins at will.
No rules or transparency are needed. Simply state your plan and even state in a disclaimer that class action lawsuits are not allowed. In this way, there seems to be nothing wrong with using IP to issue coins and then Rug. There is no law prohibiting the sale of tokens held by the token issuer itself.
It is worth noting that this was considered an illegal act by the previous SEC, such as misleading investors, but was broken by Trump's "leading by example".
Of course, it is too early to make a conclusion about the next four years just by issuing a Meme token. Web3 should not be restricted by overly strict regulations, but it should also define some basic concepts to lay a solid foundation for more funds to invest based on the value of the project itself. Meme is one of the unique cultures of Web3, but it is not all of Web3, or even the most important part.
