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January 20, 2025

CryptoQuant: Donald Trump’s Memecoin Is Unlikely To Drop To Zero, Thanks To His Dedicated Fan Base

In Brief

CryptoQuant CEO Ki Young Ju highlighted that Donald Trump has ushered in a new era of memecoins, with the coin’s value tied to his actions, and given his dedicated fan base, it’s unlikely the TRUMP will ever drop to zero.

CryptoQuant: Donald Trump Has Ushered In Era Of Memecoins

Chief executive officer of the cryptocurrency market analytics company CryptoQuant, Ki Young Ju highlighted that Donald Trump has ushered in a new era of memecoins.

In a recent post on the social media platform X, Ju stated that for retail investors, financial markets have long been about chasing memes. Following trends is not a new concept—it has always been a key part of their investment strategies. Even the decades-old advice to “invest in the S&P 500” for retirement savings could be seen as a form of meme investing.

With the growth of the internet and social media, ideas now spread more quickly and widely than ever before. Platforms like Robinhood and cryptocurrency exchanges have paved the way for an era of active retail investing. Instead of simply depositing their funds in banks or index funds, many people now take a more hands-on approach to investing. However, most investors have day jobs and lack in-depth knowledge, so they tend to follow trends. They listen to influencers, imitate others, and even look up to entrepreneurs. For instance, investing in Tesla because of Elon Musk is not so different from the populism found in politics. According to Ju, retail investors create market volatility, and institutional investors take advantage of this to profit.

Ki Young Ju further argued that it’s unlikely retail investors will suddenly become more knowledgeable about investing, and without government regulation, the herd mentality surrounding popular trends will persist. In fact, the Donald Trump administration seems less concerned with regulating this phenomenon and more inclined to capitalize on it. Their approach is simple: “If it’s inevitable, use it.” That’s why Donald Trump launched his own coin, drawing speculative liquidity from retail cryptocurrency investors around the world.

As long as a meme captures enough attention, memecoins can take on many forms in the future, with celebrity coins like TRUMP being just one example. The underlying reality of financial markets behaving like memes is unlikely to change, so it’s important to consider how to make the most of it. With cryptocurrency’s decentralized nature, it’s a fully global and unrestricted market, meaning more meme-like assets are bound to emerge.

What Gives Donald Trump’s Memecoin Its Value?

Ki Young Ju further emphasized that, unlike traditional securities, which pool investments to support productive activities, celebrity memecoins do not directly generate value. Instead, Donald Trump is likely to leverage his coin holders as a powerful community for collective action. When considering investing in Trump Coin, the crucial question becomes how much influence his community will have during his presidency. The coin’s value is entirely tied to what Donald Trump does. Given his dedicated fan base, it’s unlikely that Donald Trump’s memecoin will ever drop to zero—unless he chooses to deliberately undermine it.

Ki Young Ju pointed out that if a celebrity coin issuer refrains from pulling the rug and takes accountability for their sales, it’s not as harmful as it may seem. Even Bitcoin experienced its fair share of pyramid scheme promoters in its early days, targeting vulnerable investors like the elderly. Today, however, those same promoters have been rebranded as “visionaries” due to Bitcoin’s rise in price.

Ultimately, a memecoin’s value relies on how its community acts and whether those actions benefit society. A community driven by goodwill could potentially turn a memecoin into a valuable asset. Conversely, it would be concerning if a group with harmful intentions, such as a cult or terrorist organization, were to use a memecoin to amass followers.

The decentralized nature of the cryptocurrency market will continue to serve as a global financial platform where retail investors form communities and engage in collective meme investing. The Donald Trump administration’s embrace of free markets over regulated ones suggests that, over the next four years, we will likely see a variety of experiments involving meme-driven communities in the cryptocurrency space. This wave of innovation seems unstoppable—at least until 2028, according to CryptoQuant’s CEO.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

More articles
Alisa Davidson
Alisa Davidson

Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.

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