Featured on the cover of Time, an article reviews Trump-themed coins

Foresight News
2024-12-13 08:00:11
Collection
The popularity of the "Trump trade" remains strong. Is there still room for these Trump-related assets to rise before the inauguration in January?

Author: Alex Liu, Foresight News

On the night of December 12, Beijing time, Time magazine announced that U.S. President-elect Donald Trump has been named its Person of the Year, triggering further increases in related cryptocurrencies. Later, when faced with questions about "cryptocurrency strategic reserves" on the New York Stock Exchange, Trump stated that "great things will happen in the cryptocurrency space."

This marks the first time an American president has shown such support for cryptocurrencies. What cryptocurrency assets are related to him? Is there still room for these Trump-related assets to rise before his inauguration in January? Let's take a look at the review and analysis.

WLFI

WLFI is most closely associated with Trump, but it may not be the best investment target. WLFI is the token of the Trump family's cryptocurrency project World Liberty Financial, but the token terms and utility are not ideal, and most of the project's revenue will flow to Trump rather than to token holders:

  • Terms and Utility: According to the updated sales terms and conditions of the WLFI token, WLFI is only used for governance and not as an investment tool; all WLFI tokens are currently indefinitely locked in wallets or smart contracts and are non-transferable; if there is a desire to unlock the transferability of WLFI through the protocol governance process in the future, the following conditions must be met: it must be determined that it does not violate applicable laws, and at least 12 months must have passed since the completion of the token sale; due to the non-transferability of the tokens, the company has not taken any action and does not plan to create a secondary market for the tokens; token purchases are non-refundable unless required by applicable law; WLF reserves the right to refuse or cancel token purchase requests.
  • According to the "World Liberty Gold Paper," approximately $30 million of the initial revenue from WLFI is designated as reserves to cover operational expenses and other financial obligations. The Delaware company DT Marks DEFI LLC, associated with Trump, will receive 75% of the net protocol revenue. The Trump family will receive 2.25 billion WLFI tokens, valued at approximately $337.5 million based on an issuance price of $0.015. The remaining 25% of the net protocol revenue will belong to the Puerto Rican company Axiom Management Group (AMG), wholly owned by project co-founders Chase Herro and Zachary Folkman. AMG has agreed to allocate half of its revenue rights to Trump's close friend and political donor Steve Witkoff and affiliated companies of some of his family members, WC Digital Fi.

ETH, AAVE, LINK, SCR

Direct investment in the Trump family's cryptocurrency project may not be cost-effective, while betting on cryptocurrency native projects that have been chosen for collaboration and already have good fundamentals may have a higher success rate.

World Liberty will deploy AAVE V3 instances on Ethereum and Scroll. Sandy Peng, co-founder of Scroll, is also a project advisor for World Liberty. The project's on-chain data and cross-chain connections will also adopt Chainlink standards.

According to on-chain data, the World Liberty project wallet has purchased ETH, LINK, and AAVE tokens, which is also a major driving force behind the significant rise of AAVE and LINK on December 12.

In addition to their association with Trump, the above-mentioned cryptocurrency native projects also have solid fundamentals, making them easier for "value investment." For example, Chainlink is an industry-leading oracle and is also focusing on tokenization and cross-chain directions; Aave is the largest lending protocol by on-chain share, with many project metrics at historical highs, while the token price is less than half of its historical peak…

RSR

RSR is the token of the DeFi protocol Reserve Rights, which has no direct association with Trump, but Paul Atkins, whom Trump has chosen as the next chairman of the U.S. Securities and Exchange Commission (SEC), is an advisor to the project.

DYDX, SOL

DYDX and SOL are also not directly associated with Trump, but the "crypto king" David O. Sacks, whom he has chosen, has invested in these two projects through his firm Craft Ventures.

MEME

Trump-related meme coins are also worth paying attention to, with larger market caps including:

  • TRUMP on the Ethereum chain, currently with a market cap of over $80 million, has dropped nearly 90% from its peak in early June this year.
  • TREMP on the Solana chain, with a quirky token name and logo, currently has a market cap of $10 million.
  • MAGA (Maga Hat), featuring Trump's iconic slogan and campaign hat logo, currently has a market cap of $39 million.
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