Making Millions With $TRUMP (Meme Coins Explained)

So last Friday, something absolutely insane happened. It was midnight, I was awake, and I saw a new meme coin drop, Trump coin. I was like, ah, here we go again. This is so wrong. Another scam, and I went back to sleep. Biggest mistake ever, because that coin went from zero dollars to over several billion dollars in just a couple hours. I woke up the next morning like. Now full disclosure, I don't actually own any Trump coin myself, but imagine waking up to realize that the new president of the United States just made a meme coin, and then imagine realizing it's not actually a joke, it really happened, and that someone bought a million dollars worth of this coin at 18 cents apiece, which became worth several hundred million dollars. Barron is a genius. No, we have no idea who the buyer actually is. Could be Vivek, could be Elon, could be a small loan of a million dollars. But allegedly, it's an insider, because no one would have actually bought a million dollars worth of a meme coin just minutes after it launched, unless they knew something about something. And while I was working on this video, another meme coin just launched, Melania coin, which means at this point, we'll also probably get Barron coin, Eric coin, Junior coin, Ivanka coin, Frederick coin, the whole family tree coin. So today, I wanna look at one of the craziest things that's happening, Trump coin, and before I explain how it works, just please know that this is not a real investment. It's a meme, which means I'm all in. If you visit the official website, gettrumpmemes.com, you'll find the disclosure, which reads, Trump memes are intended to function as an expression of support for and engagement with the ideals and beliefs embodied by the symbol Trump and the associated artwork, and are not intended to be or to be the subject of an investment opportunity, investment contract, or security of any type. Take that, Gary Gensler. Can you imagine being Mr. Gensler on his last day of office, having your entire career for decades, fighting against meme coins, only to realize the president just launched his own? So let me explain exactly how this coin works and how this might potentially affect the Bitcoin strategic reserve. So let's get into it. Hi, my name is Andrei Jikh. Hope you're doing well. Come for the finance and stay for the memes. So the Trump coin is a token on the Solana blockchain. That means Trump coin benefits from Solana's speed, low fees, and it uses the same security. Now, it's separate from Solana itself as the cryptocurrency, but because Solana was chosen as the native blockchain to support it is also why Solana saw a huge price pump once this was announced. This is how a lot of these meme coins work. They're not creating their own new blockchain entirely with its own security protocols. Instead, they just build on top of existing ones, which are usually Solana or Ethereum, which as an Ethereum bag holder makes me sad. How obviously Mr. Trump did not create the token himself. That'd be kind of crazy. Imagine he's just coding it himself like. How stupid. Instead, it was actually developed by the same team that launched his NFTs back in December, 2022. So let's take a look at something called tokenomics, which is a fancy word for token and economics to explain how the coin actually works. Now, the total supply of Trump coin is capped at 1 billion tokens, meaning there will only ever be 1 billion. And as of right now, only 20% of that, or 200 million coins were created when the project launched with the rest scheduled to release over the next couple of years. And the idea behind this staggered release is to hopefully avoid an oversupply and to create price stability. But whether it actually does or not, we'll see. But another important aspect of tokenomics is what's called distribution. In other words, who were the first people to get these coins and how many of them did they get? And this is where it gets really interesting. So this is the chart breakdown directly from the official website. It shows that 36% of the coins were allocated to Creators and CIC Digital, and that's the company who launched this. That is the biggest chunk of it, which goes to them. 18% of the coins is going to Creators and CIC Digital Group 2, which doesn't specify how it's different from Group 1, but I imagine this was a secondary team who helped develop this project. And another 18% of the coins is gonna go to Creators and CIC Digital Group 3. Again, this could be anyone. It could be for marketing teams, advertising, or it could even be YouTubers. If it was, I was not one of them. Another 10% is set aside for what's called liquidity, which is to make sure there's enough volume to buy and sell the coins. 10% is for public distribution, and these are tokens available for people to buy. So I imagine more liquidity. And then 4%, 2%, and 2% are additional allocations to other Creator groups, maybe friends or family. So that's the percentage breakdown, but all of these coins don't get unlocked right away. So the second chart on this website shows the release schedule, which is gonna happen over the course of the next 36 months or three years. For example, liquidity and public distribution, which is about 20% of the total supply, is immediately unlocked. That's where the 200 million coins at launch came from. Now, the biggest portion, which is 36% or 360 million tokens is owned by Group 1, Creators and CIC Digital. These tokens are locked for the first three months to prevent an immediate sell-off, but after three months, 10% or 36 million tokens unlock instantly, and the rest of the 324 million tokens will be released gradually over the next 24 months at a rate of 450,000 tokens per day. Now, other major groups like Group 2 and Group 3, which each hold 180 million tokens, have a six-month and a 12-month lockup period respectively, after which point they start to unlock daily over 24 months. So that's how it works. That was pretty complicated, so now let me just try to make sense of all of this and tie it all together and explain it like I'm five. After the first three months, the first major unlock will happen, and every single day, the market will be flooded with 450,000 new coins from Group 1. And as the coin ages, it will get more and more centralized in ownership if the coin is not immediately sold off, because assuming that no one sells off their newly unlocked coins, at the end of the three-year period, over 80% of its supply should be controlled by the president, his friends, affiliates, and the company that helped the president launch this. So just keep that in mind. And what I can take away from this is that this token is a lot more fun to bet on right now because of its limited supply, which is 200 million tokens. But at least one analyst says that Mr. Trump and team have sold off roughly $500 million worth of these tokens at launch. And if you're reading stories of someone turning a couple hundred dollars into a million dollars, it doesn't necessarily mean they will get the entire value out of that because they still need to sell it. And if someone has millions of dollars in this token, that's a lot of selling pressure, which would drive the price down. Now, personally, I will not be investing, or more accurately, gambling in and providing liquidity for insiders, but that doesn't mean people can't make a lot of money on it or that the price will necessarily go down after the first three months. In fact, there's a strong possibility that the creators will announce utility for token holders in the future, like maybe the ability to have lunch at Mar-a-Lago with the president if you have a certain amount of tokens, or maybe the ability to stake your coins and earn some kind of interest or in-person events. And maybe that'll keep the ball rolling, but just know that after March 17th, things get a lot more risky as insiders start to accumulate a lot of coins at the rate of at least 450,000 coins per day. So that's the tokenomics of how this works. But the thing that I'm most personally interested in though is what does this launch mean for the strategic Bitcoin reserve? Now, the concept of a strategic Bitcoin reserve is about the US government buying and holding a significant amount of Bitcoin as a national asset, exactly how it holds gold in its reserves. Now, the purpose of doing this would be to leverage Bitcoin's price growth to stabilize and potentially strengthen the US dollar. And this idea, believe it or not, has a lot of legislative and political support. For example, in July, 2024, Senator Cynthia Lummis introduced the Bitcoin Act, and that's where it was proposed that a strategic Bitcoin reserve is in the best interest of the US. And the plan includes buying up to 1 million Bitcoin over five years' time with a cap of 200,000 Bitcoin per year. Now, the funding to do this would come from re-evaluating the Federal Reserve's gold assets and reallocating the existing funds that the US holds while avoiding adding to our debt. And President Donald Trump said he supports this idea, and there is a chance that he will create this strategic Bitcoin reserve through what's called an executive order, which avoids the need for approval from Congress. So the theory is that if the president has launched his own meme coin, surely he's gonna put Bitcoin on the national reserves. Maybe, that's the theory. But if it does happen, the potential effect on Bitcoin's price would be absolutely insane. Because if the US government starts to buy Bitcoin at that rate, it would spark a global race for other countries to start putting Bitcoin on their balance sheets as well. And some analysts are saying that national adoption at that scale could send Bitcoin's price to multiple hundreds of thousands of dollars, with some estimates saying it's possible to reach $1 million per Bitcoin as early as 2025. Now, it's unlikely, but it is possible. The optimist in me thinks that this strategic reserve is going to happen. It's inevitable. There's just too many big players playing this game now. And the next four years are about to be some of the most transformative, wealth-creating years of my lifetime. Famous last words. But I'd love to hear your thoughts. Are you buying Trump coin? And what do you think of the strategic Bitcoin reserve? And as always, I hope you have a wonderful rest of your day. Smash the like button, subscribe if you haven't already. I'd love to see you back here next week. I'll see you soon. Bye-bye.