Unlike other digital assets, delighted Sarathy says that the same is “largely speculative”, “do not have many commercial ends”, cannot be used in decentralized financial transactions and do not act as reserves of value .
Donald and Melania Trump dip more than a simple toe in the world of so -called “memes” pieces: the pair recently launched their own pieces, which has amassed a Market capitalization of several billion dollars.
A coin is a type of cryptocurrency that is based or takes its name from a meme or a cultural trend.
The part of memes associated with Donald Trump, $ Trump, launched Friday, soared in value over the weekend, then fell to $ 40 after Melania Trump abandoned her digital part, $ Melania. The room was exchanged about $ 60 early on Monday. The two pieces are now negotiated on the Solana blockchain.
Mainly speculative
Delighted SarathyProfessor of international trade and strategy at the Northeastern University, explains that the pieces even differ from other digital assets in several ways. He says that they are mainly of a speculative nature, lacking significant commercial utility, cannot be used in decentralized financing applications and transactions (DEFI), and generally do not act as reserves of value.
“They are part of the West West of Crypto-Monnaies,” he says. “It’s brand new.”
Although the coins bear the names of the president and the first lady and are pushed by the pair on social networks, they are “are not intended to be or to be the subject of an investment opportunity, an investment contract or security of any type ”, a warning on the website For the memes part associated with Melania Trump, says.
In addition, the website indicates that the play “is not political and has nothing to do with a political campaign or a political bureau or a government agency”.
However, Sarathy says it is strange to see a new president promote a piece of memes while he takes the oath.
“People who wish to obtain the favor of President Trump could buy his parts because if they buy his medal, the demand increases; And if the request increases, the price could follow, ”explains Sarathy.
First “even” pieces
Far from the first joke currencies, the memes parts have existed since the start of the crypto industry, the most famous example being Mastiff. Dogecoin started as a joke and presents a dog as a mascot.
The pieces even tend to call on investors with an appetite for short -term speculation, although Sarathy notes that collectors have also been interested in them.
“I would say that most of these purchases were speculative,” said Sarathy about the memes of the Trumps, “and these speculators may now throw the medal because there are no quick gains to do. “”
Publisher’s choice
From English teacher to CEO, Northeastern helped place Gabby Gabriel on the right track
Northeast student to give “women in need to feel confident, beautiful” with kits of beauty products on Valentine’s Day
Self-assistance groups strengthen the success of treatment with opioids, according to Northeastern Research
From research to diabetes to the development of the EV battery, the northeast of the cooperative transfers microscopy skills in all industries
Scottish Haggis could be sold in the United States for the first time in 50 years. But is it authentic and what could it mean for producers?
Buyer benefiting
However, buyers of coins should be cautious: their creators often speak of parts before quickly selling their assets, leaving the others with “bags” without value. This is popularly called a “pump-and-dump” scheme.
Pump and dump patterns tend to be initiated by medal officials or who have the greatest assets. Other cryptocurrency projects tend to lose any interest over a long period, while buyers “go to the next fascinating thing,” says Sarathy.
“There were parts that were launched by their promoters, then people stop supporting them,” he said. “While the interest gradually disappears, the price drops. As demand drops, people who have the medal and do not hold it in the long term decide: “The price drops, I sell it better before losing everything.” »»
In this way, the memes pieces differ from more established cryptocurrencies such as bitcoin. The pieces even, such as $ Trump or $ Melania, are often sold quickly in the first sign of problem. Their prices are drawn mainly by short -term speculation and the “fear of missing” (FOMO). On the other hand, the Bitcoin price is partly influenced by its “very limited” offer, according to Sarathy.
“More than half of all bitcoins are held by long-term investors,” he said.
“Here, I don’t think it’s a supply of supply,” he added, referring to coins. “I think it’s a question of narrowing gradually when people are starting to see that the price does not like.”
As long as cryptocurrencies exist – and Sarathy predicts that they do not disappear – new pieces of memes appear, generate a brief enthusiasm and die.
“They are part of the frame of the crypto,” he says. “There will always be an element of” let’s make a small money. “”