Original author: Alex Liu, Foresight News
On the night of December 12, Beijing time, Time magazine announced that the U.S. president-elect Trump became its Person of the Year, leading to further increases in related cryptocurrencies. Later, when asked about 'cryptocurrency strategic reserves' at the New York Stock Exchange, Trump stated that 'great things will happen in the cryptocurrency space.'
This is the first time the industry has welcomed a U.S. president who strongly supports cryptocurrencies. Which cryptocurrencies are related to him? Is there still room for these Trump-related assets to rise before the inauguration in January? Please see the summary and analysis.
WLFI
WLFI is most closely associated with Trump, but it may not be the best investment target. WLFI is the token of Trump's family crypto project World Liberty Financial, but the token terms and utility are not ideal. Meanwhile, most of the project's revenue will flow to Trump rather than to token holders.
Terms and Utility: According to the updated terms and conditions of the WLFI token sale, WLFI is only used for governance and not as an investment tool; all WLFI is currently indefinitely locked in wallets or smart contracts and is non-transferable; if there is a future hope to unlock the transferability of WLFI through the protocol governance process, the following conditions must be met: ensure no violation of applicable laws and at least 12 months after the completion of the token sale; due to the non-transferability of the token, the company has not taken any action at present and does not plan to create a secondary market for the token; 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' document, approximately $30 million of the initial revenue of WLFI is designated as reserves to cover operating expenses and other financial obligations. The Delaware company DT Marks DEFI LLC, associated with Trump, will receive 75% of the net protocol revenue. Trump's family will receive 2.25 billion WLFI tokens, valued at approximately $337.5 million at the issuance price of 1.5 cents. The remaining 25% of the net protocol revenue will belong to the Puerto Rican company Axiom Management Group (AMG), fully owned by project co-founders Chase Herro and Zachary Folkman. AMG has agreed to allocate half of its profit rights to Trump's friend and political donor Steve Witkoff and associated companies of some of his family members, WC Digital Fi.
ETH, AAVE, LINK, SCR
Direct investment in Trump's family crypto projects may not be profitable, but betting on well-founded native crypto projects chosen for collaboration by this project may yield a higher success rate.
World Liberty will deploy AAVE V3 instances on Ethereum and Scroll. Scroll co-founder Sandy Peng 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, World Liberty project wallets purchased ETH, LINK, and AAVE tokens, which were also the main drivers for the significant price increase of AAVE and LINK on December 12.
The above-mentioned encrypted native projects not only have a good fundamental basis, apart from their association with Trump, but are also more suitable for 'value investing'. For example, Chainlink is the industry-leading oracle, while also focusing on tokenization and cross-chain directions; Aave is the largest lending protocol by on-chain share, and many of its metrics are at historical highs, yet the token price is less than half of its historical peak...
RSR
RSR is the token of the DeFi protocol Reserve Rights. This project has no direct association with Trump, but the next chairman of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, chosen by Trump, is an advisor to this project.
Recommended reading:
Everything you need to know after Trump nominated Paul Atkins as SEC Chairman. This announcement sends a clear signal to the market: the regulatory environment for the cryptocurrency industry is about to undergo significant changes.
DYDX, SOL
DYDX and SOL also have no direct association with Trump, but the 'crypto czar' David O. Sacks he selected has invested in these two projects through his firm Craft Ventures.
Recommended reading:
The Crypto Journey of America's First 'Crypto Czar': 'White House AI and the Crypto Czar' David O. Sacks' impressive resume and story with Crypto.
MEME
Trump concept-related meme coins are also worth paying attention to, with larger market values including:
On the Ethereum chain, TRUMP has a current market value of over $80 million, having dropped nearly 90% from its peak in early June this year.
On the Solana chain, TREMP, which has a quirky name and logo, currently has a market value of $10 million.
MAGA (Maga Hat), Trump's signature slogan and campaign hat logo, currently has a market value of $39 million.