How many times can the Overton Window break? This weekend, President-elect Donald J. Trump issued his own official meme-coin to pair with his prior forays into NFTs. 

In today’s bonus issue, we’ll catch you up on what happened on-chain, on Twitter, and in Washington DC this weekend. We’ll close with some thoughts on why this matters for Bitcoin.

Time to read is 5 minutes.

The Art Of The Token Grift

Late Friday evening, as the crypto ‘who’s who’ joined BTC Inc’s Crypto Ball to celebrate the Trump inauguration, Trump’s crypto team was at work. 

One billion, then two and onwards. By Friday night EST, TRUMP hit a $5 billion fully diluted valuation (FDV), surpassing almost every major mining stock we cover at Blockspace. By 4 AM EST, TRUMP would triple that value. 

Binance, Kraken, OKX all raced to list TRUMP by Saturday morning. Newcomer retail apps like Moonshot were clear winners, adding 400,000 new users in 1 day. By Saturday morning the token reached over $70 billion in FDV.

(Note: A “Fully Diluted Value” takes into account the total supply of a token times the market price of a token, whereas many data sites will only take into account the available float times the token price. This will lead to a large disparity in value).

An 80% allocation

Insiders normally win in crypto. And even more so for the Trumpster. For TRUMP, a single wallet currently owns 80% the token supply. The official website for the token lays out a high level plan for the token and includes allocations for various “creators,” and more conventional activities like providing liquidity to on-chain orderbooks.

So, only 20% of the token supply is on the market. And the Trump team has the ability to sell their stash into the available token float. In other words, there’s still a lot of coins to sell to a euphoric market.

It’s not just the supply to be concerned about, however. There’s a few other Trumps who want in on the action. In a surprise Sunday night massacre, Melania Trump launched her own competing memecoin. Markets were quick to move, cutting TRUMP’s valuation roughly in half in short order.

“Jamie, pull up the chart”

You don’t need to look any further than the Google Trends chart. “How to buy crypto” is forecasted to surpass 2021 levels. 

What does this mean for Bitcoin? A few thoughts:

• The memecoin trade is alive (and dead): AI memecoins plummeted in value as political memecoins may now be in vogue. Expect another cycle of rotation until the current set falls out of grace.

• The crypto-state: Consider downstream effects including taxes, custody solutions, exchange listings and more. 

• A crypto-equity moment? Startups and crypto-native companies might move toward more permissive equity solutions involving tokens in the near term.

• Bitcoin is still king: Momentarily phenomenon like TRUMP or other tokens are entertaining, but collapse over time. Bitcoin will continue to go from-strength-to-strength as it sucks up memecoin liquidity over the next four years.

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