To The Moon

I've long known that Trump doesn't play by the rules. But the fact that he launched a MEME coin over the weekend still makes me think that if he really gets a second term, he might bring huge risks to the financial markets. And this risk isn't just in the cryptocurrency market. You know, the audience in the cryptocurrency market is relatively small. This risk is likely to spread to the US stock market and even affect the global market.

This weekend, people in WeChat Moments and groups were talking about how people got rich overnight with Trump coin. Actually, this kind of thing isn't new. People have made a lot of money from those so-called "shitcoins" and MEME coins before. And Elon Musk is also someone who likes to promote coins. But Trump is about to become the president again. Plus his wife, they have successively issued coins on SOL. Their influence is really beyond that of ordinary people. This makes us realize two things. First, no matter what you say, making money is the most important thing. Second, technologies like blockchain don't seem to be that important in the eyes of people who want to make big money.

Market Reactions to Trump's Coin Issuance

Many KOLs on social media are praising this. But I took a look at the market and found that whether it's other MEME coins, counterfeit coins or even Ethereum, they're all falling sharply. Obviously, what Trump did is sucking out all the liquidity in the market. His way of playing is just pure gambling. Whether you want to make money or speculate, most people will get hurt and the whole market is in chaos.

Potential Risks and Uncertainties

If this is just a test by Trump, if he does the same promotion in other mainstream markets or directly issues executive orders, it will definitely cause great turmoil. And it seems that this possibility and risk are increasing. In addition, there are already internal conflicts in the US election. There will probably be a lot of confrontations against Trump in the future. All these make the financial market very unstable.

Coping Strategies for Traders

For us traders, first of all, we have to guard against the risk of a general market decline. Once there's a black swan event or something big happens, most assets won't be able to hold up. After this wave passes, we can then pick out those mispriced varieties and assets. It's hard to say which assets will benefit from hedging at present, but there are a few candidates. The Japanese yen is one. It's a major tool for arbitrage. If the risk situation changes, capital repatriation and capital reallocation will be good for the yen. Gold is also possible. Although I'm not very optimistic about gold from a technical point of view, if there's a special situation, as a traditional hedging asset, gold is still quite attractive. The same goes for US bonds and the US dollar. Bitcoin is a bit tricky. It seems to be closely tied to Trump. If Trump does well, it may do well. If Trump has problems, it will suffer too.

Risks and Opportunities Brought by Trump

Anyway, both risks and returns depend on valuation and price. If the market panics but the price drops to a certain level, the bad news may turn into good news. The uncertainty brought by Trump is both a risk and an opportunity. We shouldn't be jealous of others making money. Just focus on the profit-loss ratio and cost performance, and then we won't be affected by the short-term market fluctuations.

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