With Trump's inauguration today, and the insanity of $TRUMP and $MALANIA of the past couple of days, it's worth reflecting on how best to trade Trump's new involvement in the crypto space.
Let's begin with the reality of the situation.
Trump and his family don't have a single project in the crypto space and don't have a single advisor.
Their two key projects are:
1. Memes / NFTs - Handled by Ryan Fournier
2. World Liberty Financial - Don Jr. + Barron + Advisors?
Ryan is a moron who not only launched $MELANIA and immediately wiped $10b+ from Trump's net worth yesterday, but he also launched a fake "official" TikTok coin and rugged everyone. Below is his apology.
World Liberty Financial is a DeFi protocol on $ETH. Ownership in it is possible only via the purchase of digital shares if you're accredited. Justin Sun owns some $30m+ of the stock.
In any case, below is a graph of the key projects it's invested in. As you can tell, $LINK is the common ... link (sorry).
Beyond providing some promised Real World Asset connection, World Liberty Financial provides a credible way for $TRUMP to get money out of his dumb meme coins (and Mel's meme coins too).
If WLF accepts these memes as collateral. Trump can then borrow real money against them ... and ... well, that's it really. That's the whole scheme.
Deposit $TRUMP, borrow cash (= profit).
A Trump grift is never that complicated.
Of the other items in the Trump ecosystem, here are a few points.
1. Everyone hates $ETH, but it's integral to WLF.
Betting against $ETH is betting against Trump's obvious inclination to manipulate markets. Do you hate money?
Just yesterday, Eric Trump re-tweeted a post that found WLF bought $30m+ of $ETH while the $Melania chaos was happening.
2. Of all the coins in the Trump ecosystem $ETH is the only one NOT to retain a massive gain post-Trump's election.
$ETH is up ~34% since election day, while $LINK is up ~147% and $AAVE is up ~159%.
3. And if you're into stocks, Trump's $DJT may end up acquiring a large part of TikTok. He has stated that he wants 50% US ownership.
Elon Musk wants something out of the deal--at the very least not to have X banned in China.
And if Trump can start using some of the value of his meme coins as collateral, he'll probably have enough power to become a significant purchaser himself.
Of course, the new TikTok will pump his projects on a minute-by-minute basis. Why would it be otherwise?
Concluding Thoughts
Betting against Trump and his family in the crypto space may not be a good idea--at least in the long term.
The coin with the most obvious overlap in his ecosystem is $link, but the coin that is the most hated and has bounced the least is $ETH.
Go ahead and buy them ... or don't. Maybe Trump will crash everything. I don't know. DYOR. This is not financial advice!
Happy Trading!
-Sebastian Purcell, PhD
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