Thinking about Trump's issuance of Trump coin: Is it a great feat or a self-imposed prison?

Author: RM , Crypto KOL

Compiled by: Felix, PANews

As Trump prepares to take office as the US president on Monday (January 20 local time), he issued a personal memecoin "Trump". CIC Digital LLC and Fight Fight Fight LLC, which was established in Delaware earlier this month, own 80% of the tokens. After the token was issued, many people praised it, but it was also criticized by many celebrities.

Crypto KOL RM published an article analyzing Trump's coin issuance incident. He believes that coin issuance may not bring a lot of benefits as most people think, and there is a certain "binding" behind it. The following is the content details:

There is no news as fascinating as the news that soon-to-be President Trump is launching a memecoin. I personally do not own any memecoin, and to be honest, I do not fully understand the subsequent effects. We are sailing in uncharted waters, this moment feels unprecedented, and it is difficult to understand how he or his team can fully understand what just happened.

Cryptocurrency is fascinating because of its decentralized network effects. This interest has led me to explore social graphs, new market structures, capital and community formation, and reputation systems.

Reputation in crypto is particularly fascinating. In a trustless system, reimagining the concept of trust is critical. I’ve had the privilege of working on performance-based capital projects, building permissionless app stores to communicate trust, and experimenting with how reputation can enhance social experiences. What’s the takeaway? In a decentralized, permissionless, censorship-resistant world, how trust is measured and expressed is paramount.

Back to the Trump coin. SocialFi is where creators tokenize themselves, something that has been seen over and over again in every crypto cycle through social tokens. But this time it’s different: the token has launched, the price has soared, and it’s tied to a figure who may once again be the most powerful political leader in the world by the time you read this.

While their website claims to have “no official connection” to politics or Trump’s personality, in the meme world, this is laughable. Ideology, identity, and branding are now directly tied to price. Trust is dependent on market makers, speculators, and hype cycles.

The rapid rise of Trump Coin opens up a world of possibilities. Could we be witnessing the first trillion-dollar person whose token’s market value is pegged to a single person? How does one’s self-worth and public image change when pegged to a real-time price chart?

Also, with 80% of tokens controlled by one entity, will the biggest Rug pull occur? Does selling mean losing confidence in yourself? It’s a twisted philosophical puzzle in the age of influencers. Have fun.

Fans hold 20% / Individuals hold 80%

Personal tokens traditionally give the community a larger allocation, letting them define your value and prevent single points of failure. But it also means that your concept can be bigger than you. Your idea can outlive you as an individual. Trump Coin flips this on its head with an 80% personal allocation, making it difficult for him to exit gracefully. Selling means destroying your community, which generally destroys you as a brand. (But it’s important to note that Trump seems to play by different rules).

I hope others will follow suit. If Trumpcoin soars, it seems there’s nothing stopping celebrities from getting into memes. This could spark a wave of personality-driven memecoins. Historically, “creator economics” have often failed because attention is predatory, causing creators to burn out in the pursuit of dopamine and an audience. With 80% lockup, you have to keep delivering or your community and token price will work against you. It’s a high-stakes dance: keep them engaged or face huge adverse consequences.

Personally, it must be psychologically exhausting to think of your “worth” as a volatile stock. Imagine extending that to the presidency. One day, your market cap soars; the next, an unpopular move sends the token crashing. It’s like living in an episode of Black Mirror, where “market cap” equals self-worth and “24-hour volume” measures correlation.

This dynamic extends to the broader creator economy. If fans own 20% and you own 80%, you’re locked in. You can’t exit or pivot without alienating your supporters, damaging your net worth, and quite possibly your ego. It forces you to either maintain the status quo or double down on your efforts and risk burnout.

Reputation has a price these days

Is this the world's most ingenious social experiment, rewriting the power, brand and money landscape, or is it an unexpected time bomb that threatens the president's credibility? Unlike stocks that react to politics, directly monetizing personal images allows reputation to be bought and sold in real time.

I've always believed that reputation buys you money, but money doesn't buy you reputation. We're going to see this script battle-tested in complex new ways.

Ironically, the 80% strategy could strengthen the community by trapping the token issuer. You can’t sell without anyone noticing, and every move affects the price. While creators have the biggest stakes, stopping the hype hurts investors.

Massive allocations of Trump coins enforce a new kind of accountability. Unlocking the tokens and selling would signal a loss of confidence in the meme and oneself, which could invite political or reputational backlash. Insiders must exit carefully to avoid a crash; selling would set off a chain reaction.

This is new territory for SocialFi, at least at this scale. Did Trump accidentally create the only way to hold his followers accountable? Memecoins now act as a reputation mechanism. Holding 80% of the tokens means huge responsibility and obligation. Trying to quietly sell on the sidelines allows new whales to exploit your image. Selling it all is giving up. Not getting more extreme will not increase its price. It's a trap.

so?

I’m intrigued by this development, but even more curious about how copycats will respond. Are you ready to let your value fluctuate with every public move? Will you betray your community for rewards, or continue to inflate the balloon in the hope that it never pops? Do you sacrifice your personal freedom to appease the faithful, forced to gradually cash out without devaluing? This is the new face of self-governance — living by price. Interestingly, you may now need to pay an unrealized gains tax on your self-worth: you need to sell yourself to the community you’re forced to serve.

Trumpcoin thrusts us into an era where political identity, personal reputation, and memecoin speculation converge in real time.

Personally, I don’t think you should tokenize yourself. We are here to govern, not to be enslaved. While an 80% allocation feels good, remember the old saying Uncle Ben once said: “With great allocation comes great responsibility, or you will face great risks.”

Related reading: Trump is rising, Solana is king, and the president is issuing coins: Who is the winner and who is benefiting? What is the impact on the crypto market?