Is Memecoin TRUMP a Good or Bad Signal for the Crypto Market?

On January 18, 2025, following the explosion of the TRUMP memencoin, Peter (@pet3rpan), a user on X (formerly Twitter), shared a post expressing his views on the impact of Trump memenoin on the crypto market.

In his opinion, in the short term, TRUMP could drive up prices and create liquidity for the market. In the long run, however, this could be the catalyst to push crypto into a serious crisis, even leading to the worst bear market in history.

Peter argues that if Trump did indeed officially launch a memento, this would trigger a chain effect, which would entail a slew of other celebrities also racing each other to issue tokens without thinking twice about the consequences.

During the buillish market phase, these tokens can thrive thanks to cash flows from individual investors. However, as the market enters a bearish cycle, the value of these tokens will plunge, resulting in the largest rug pull ever targeting U.S. citizens. When token values plummet, waves of grievance, outrage, and negative reactions will flare up, turning crypto into a PvP battlefield but on a worldwide scale.

According to Peter, the difference between clearly planned token issuance projects aimed at creating long-term value and having a President open the door for people to jump into the market without any control is huge. If Trump does this, he will not only make crypto a race full of chaos, but he could also push the industry into a politically negative state.

Peter concluded that there was only one way for this story to end, implying that the future of crypto could become extremely murky if this scenario were to occur.

However, it was not only Peter who expressed this concern. The long analysis of the @wassielawyer account also mentioned the same prospect. Wassielawyer uses the metaphor of “Las Retardio” a city that once had a thriving casino economy but then decayed because of chaos, fraud and lack of control.

In his series of posts, Wassielawyer describes how gamblers in the city gradually become radicalized, find every way to cheat and even have to rob each other to keep playing.

Initially, when a new city council appeared, many expected a positive change. This council demonstrates good will to cooperate with casinos, aiming to build a transparent environment and with clear rules.

However, as soon as hope caught up, the new leader unexpectedly opened his own casino. Instead of setting regulations to control the market, he attracted a crowd of newcomers who had no experience and only rushed in because he thought it was an easy opportunity to get rich.

As a result, the market quickly fell into chaos. Without rules or any oversight, fraud, fraud and manipulation explodes.

Wassielawyer stressed that crypto has always faced the problem of “regulation by enforcement,” meaning that instead of having a clear legal framework, authorities often point their hand after an incident has occurred.

This makes the crypto community, which is already so distrustful of the authorities, even more inclined to oppose regulatory measures. However, that does not mean that a rule-free environment will be the optimal solution.

A truly pro-crypto President should focus on building a reasonable regulatory framework so that the industry can grow sustainably, rather than exploiting it for personal gain.

Both Peter and Wassielawyer agree that in the short term, the MEMECOIN TRUMP could be a great trading opportunity as cash flows into the market. But in the long run, if crypto becomes just a playground for worthless memento coins, where people enter only to be dragged by the rug, the consequences will be dire.

Once newcomers lose money en masse, they will not only leave the market but also put pressure on lawmakers to squeeze crypto like never before.

In short, crypto today is like an underground casino where veteran players can still survive with skill and trickery. But if the authorities open the door to the mass of newcomers who enter without any rules, then sooner or later the losers will find a way to close that casino permanently.