Since Trump launched his meme token, the crypto space took an unfortunate turn.
Crime has become normalized!
More and more influencers are launching their own tokens for a quick cash grab. This is now a normal occurrence across the crypto space.
Let’s look at some examples first and then my views on this.
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1. ZACHXBT
If you don’t know Zach, he’s quite famous in crypto for his blockchain forensics and helping people recover money from hacks and related incidents.
His reputation is quite positive across the space as he managed to recover hundreds of millions in crypto assets over the years.
However, since the Trump token, he has been complaining that he did not monetize his work and barely made any money from his activities.
After that post, someone launched a meme token called ZACHXBT and sent 50% of all tokens to Zach himself.
Initially, Zach used the tokens to provide liquidity on platforms like Meteora. Since the token was quickly pumping, Zach started having a lot of SOL in his liquidity pool. Once it reached $4 million in SOL, he pulled out his liquidity.
What happened next?
The price crashed as you can see above, but Zach kept $4 million in Solana. Not bad for one day of work, especially because he did not even create the token.
Initially, Zach was quite critical of Trump and his token, but after this, he joined them. This is a worrying trend in crypto which preys on the greed of users.
TechLead or TL
TechLead is another influencer that just released his TL meme coin. He used to be quite famous on YouTube due to viral videos about tech and coding.
In the last cycle, he also created a millionaire token which was basically the same thing like this one. A quick cash grab.
These influencers are essentially using the mania created by Trump and his token to capitalize on speculators and farm their money. If you fall for these tokens, then expect to lose 90% of your money.
Trump family tokens
The TRUMP token was just the start and the Trump family has a plan which involves many more tokens. However, what they don’t understand is that with each new token, they dilute their brand and create saturation in the market!
For example, as soon as Melania launched her token, the Trump token crashed 50% as liquidity shifted to her token. The market cannot sustain such levels of dilution. After the initial pump, MELANIA price crashed as usual.
We do not know what else the Trump family has in store, but a quick look at the price action of TRUMP shows that it’s making lower lows. This is bearish. I believe the top could be in already and was achieved a day before his inauguration.
Trump also admitted that he does not know much about his own token. Nevertheless, Trump could pump it later after a push from his family. I am not even sure if this would be legal, but Trump has immunity as the president.
Either way, make crime great again is the new narrative in crypto. Since the TRUMP token, outsiders that think crypto is a joke have plenty of examples to back it up.
What now?
First, stay away from such pump and dumps. This is pure gambling.
The only memes worth your time are those that actually have a community behind them, like RAT Escape. Such tokens have a huge advantage over any one man show like the first two examples from above.
Trump token is unique in many ways, but if they miss-manage it by launching too many new tokens, then Trump will crash and be diluted to death as a brand.
It would have been smarter to only have the Trump token, but I think Melania launched her own token without anyone’s approval. Her website domain shows they planned it in 24h after TRUMP token got released. If more Trump members follow, it’s going to be a mess.
Second, the true damage done by tokens such as TRUMP is that they sucked market liquidity from legitimate projects. Long term, this may have terrible consequences for the space as incentives shift towards pure gambling. That’s not a sustainable growth model.
Third, with Trump on chain now, the Solana ecosystem represents a casino and gambling is their main use case. This is quite a sad state of affairs considering the ethos of Bitcoin and what Satoshi stood for. It took us 17 years of innovation for crypto to turn into a casino where crime happens daily.
The space has been corrupted by Solana.
In a way, this was inevitable since the decentralization of money will always allow for such degenerate behavior. This is where we are today, but I believe a counter-movement will emerge eventually.
Lastly, once people get disgusted enough with Solana, we will return to the true ethos of crypto as started by Bitcoin and continued, to a large extent, by Ethereum. However, the latter is facing an identity crisis as users are starting to forget it exists. It would be quite sad to see Ethereum be flipped by the Solana casino, but this is a real threat now.
Ethereum cannot scale, and due to its high fees, its days are numbered. This is also perhaps why Solana exists today in this shape.
This meme mania could also be the last stage of this cycle as speculation runs rampant. Use this time wisely. Since Bitcoin also made an ATH at 109k, which qualifies as a higher high, the market remains bullish and can continue like this for months still.
We discuss the market daily on our discord and I invite you to join our Patrons Pro group. This roles is for life once in. You can also join if you own over 1 million RAT which is at a great price nowadays. Just send Duo a message.
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All info is provided for educational purposes only and is not financial advice.