The Trump family is normalizing meme coins and bringing them into the mainstream.
How will this affect the future of cryptocurrencies?
We've seen something like this before. Here's what's likely to happen in stages:
1. Stage One: Meme Party
A new era is coming — the monetization of popularity through tokens. Every famous person will want to issue their own token and make themselves the subject of bidding on the global market. This will be the ultimate way to turn fame into money.
But these tokens have no economic value. In fact, they create another platform for gambling. At first, this will lead to the growth of many small altcoins, but soon everyone will realize that the main show is betting on star tokens.
2. Stage two: Outflow of liquidity
This process will start to draw liquidity out of traditional altcoins. People are already buying them for quick earnings, but now this liquidity will be redistributed to thousands of meme coins from celebrities.
Who wants to keep a random “monkey token" if you can make 100x on a coin from Trump or another famous person who advertises his project every day?
3. Stage Three: Market Fatigue
Over time, the hype around meme coins will begin to decrease. With each new token, the profitability will be lower and the competition will be higher.
The meme hunters will start to get tired. The constant losses in previous projects and the pressure to “keep up with the new trend” will become unbearable. This stage will be the moment when the bubble bursts.
4. Stage Four: Phoenix
At this stage, the teams behind the successful meme coins will lock in profits. Some of the funds will be transferred to Bitcoin as an asset for long-term storage.
This is where it all ends. The meme mania will burn out, and Bitcoin will come back on the scene like a phoenix from the ashes.
Another advantage of bitcoin is that, as its holder, you don't have to worry about Satoshi's wife issuing her own coin. 😏
Such a story may be waiting for us ahead. Are you ready for this scenario?