anyone can create meme coins and that means there's a ton of scams it also means it's easy for people to make them for publicity or to generate quick income assuming they can get people to buy after they do when celebrities make meme coins they usually Skyrocket because of the instant advertisement to millions of people so getting people to buy their coin is easy but what if the celebrity didn't create it themselves what if a scammer created a coin under their name hacked their social media accounts and advertised it as if it was a real token
welcome to whiteboard crypto the number one YouTube channel for crypto education here we explain topics of the cryptocurrency world using analogies stories and examples so that anyone can easily understand them in this video I'll explain what the Trump meme coin is some of the drama around it and the tokenomics of how these kind of coins usually work first off it is important to understand the tokenomics of this project which is basically a fancy way of saying the economics of a token in other words Supply and distribution for meme coins including the Trump token you can
actually search the address of a contract on a public blockchain Explorer to see what the supply actually is and who's holding it for the Trump coin you can look it up on souls scan. and see that there are a total of 1 billion tokens created however only 200 million or 20% were released on day one the rest of the tokens or 80% of the total Supply are held in a single wallet which we'll explain in a minute roughly the next 10% is held by centralized and decentralized exchanges as a form of liquidity that allows people
to buy and sell that leaves the final 10% of the supply for the public to actually hold and trade the 80% number I mentioned previously is the rest of the supply and it's owned by creators and cic digital LLC the company that launched the token which will be allowed to access the funds throughout the next 3 years in simple terms this token will definitely be inflated as free tokens are literally given to the owners of the project throughout time and it's up to you to guess if they will hold these tokens or if they'll sell
them because it's definitely true that they will get them for free oh by the way if you want early notifications on stuff like Trump launching his own token or defi tutorials on how to trade this token before it hits big exchanges such as coinbase or binance you should consider joining our email list by signing up completely free at whiteboard crypto.com you can also use the link in the description below also regardless of your political beliefs Trump and his administration seem to be very Pro crypto so there will be many things coming in the next year
that you don't want to miss including our Channel hitting 1 million subscribers by the way hit that subscribe button if you haven't already because we've got a busy few months ahead of us with some videos that you don't want to be too late to watch let's move on to trading volume the Trump coin launched on salana on Friday January 17th 2025 a couple days before the official inauguration within 3 hours it had billions of dollars put into it both through the Project's ability to buy with a credit card and and also through decentralized exchanges like
radium or Jupiter tons of people were buying and selling and while there were posts announcing on Trump's own social media Pages some people wondered if his accounts had been hacked to promote a scam coin which is something that has happened with countless other celebrities before that concern still didn't stop people from buying and selling it obviously some early investors made substantial profit by not just buying the token but by supplying liquidity to exchanges where proportion of each trade is given to those who provide funds for exchanges to use to facilitate trades providing liquidity is a
great way to have exposure to an asset while also profiting on the trading volume of that asset and when this project was launched there was significant trading volume moving on something we usually look at during research or projects is the history of the creator for this politician this is not the first crypto project he started Trump or rather the company behind him has also created an nft collection of digital trading cards which just released a fourth series and Trump's also associated with a crypto trading company called World Liberty financial and in the past he's even
accepted crypto payments for campaign donations overall Trump and his campaign made around $35 million from selling the nfts another 7.2 million in licensing deals about 13 million in campaign donations and funding tens of millions of dollars invested in World Liberty financial and tens of millions of dollars in token sales on the same platform and now his company owns billions of dollars of liquidity in this Trump token and while he's racking up millions or billions the people who buy and sell these assets haven't been as successful the release of multiple nft collections including the mugshot Edition
in December of 2023 led to something called Market saturation that overs Supply along with the fact that you can't even sell these until the end of January 2025 diluted the value of earlier in F's disappointing initial investors World Liberty Financial was launched by Donald Trump Jr and Eric Trump and supposedly Donald Trump had no involvement regardless wlf faced scrutiny over potential conflicts of interests between business ventures and political aspirations especially given the family's political influence the project had a goal of raising $300 million and it fell short with less than half of that secured so
this Project's credibility is also questioned especially due to the involvement of Justin's son the well-known Tron crypto founder who also has alleged histories of fraud the legality of any of these Ventures is questionable because the US does not have substantial crypto regulation in place supposedly that will change once Trump officially becomes president but none of these Ventures were started before the regulatory Clarity so that may be a problem for investors or even Trump himself if the law decides to crack down on it in other words even if these projects are legit Traders will not see
as much profit As Trump and his Affiliates will and if we take political beliefs out of the conversation which we're trying really hard to do and just look at the economics these are not particularly lucrative Investments Donald Trump has been involved in a variety of Ventures Beyond just crypto that didn't really have a great ending including Trump branded physical coins sneakers Bibles guitars watches Stakes vodka and the infamous Trump University many of these projects like Trump stakes and Trump vodka failed due to poor sales and marketing well Trump University faced lawsuits over fraud and they
eventually settled for $25 million most Ventures relied heavily on his brand name but struggled with quality or sustainability leading to a pattern of high-profile launches followed by quiet discontinuations regardless of that history and it's going to be interesting to see what happens with these crypto projects kind of wrapping this video up I want to share a disclaimer of meme coins now the point of meme coins is to make money people buy them with a hope to sell them at a higher price than they bought them hoping that they're not in the average statistic of someone
who loses money now it's really easy to do this right now with aggregation sites like Jupiter that will automatically scan the blockchain and find new coins and list them on their exchange if they meet certain criteria regarding liquidity and other key metrics that differ depending on the exchange so it's usually pretty easy to buy and sell meme coins that are really popular where they're gaining popularity quickly but here's the thing all of these meme coins have no utility or inherent value they're not specifically solving a problem they don't include new technology and they're really only
worth what people are willing to pay for them so they are entirely what we call speculative assets people speculate that in the future they will be worth something so they take a gamble on buying it to put this in simple terms meme coins fall into the gambling category one thing I want to mention here regarding the Trump token is that former President Jimmy Carter actually put his entire Peanut Farm business into a blind trust so that he wouldn't have a conflict of interest while he was serving as president on the other hand Donald Trump launched
an unregulated meme coin which theoretically could let anyone purchase for his gain because he does own 80% of the supply which leads many people to a theory of this token being used as a nonobvious way to purch favors from the president we're not sure what this means for the future of the United States but we and others can certainly investigate the data on chain thanks to the transparency of the blockchain and if you want to sneak peek of that currently there is a wallet which was funded with a million 4 hours before the Trump token
launched when it launched it bought a million dollars of the Trump token as cheaply as possible and now that initial investment of a million is worth over $400 million and all the evidence points to this being an Insider anyways thank you so much for watching I hope you enjoyed this video I really hope you learn something and most of all I hope to see you in our next video
