In this article, we are going to discuss the importance of controlling your emotions when it comes to short-term crypto valuations, while also considering the long-term benefits of emotionally charged publicity when it comes to the crypto industry.
We witnessed much of Crypto Twitter become enraged after Trump and his wife launched their own memecoins just a few days before the presidential inauguration.
I think Donald Trump is someone who keenly understands the concept of "any publicity is good publicity," and that's why he deliberately makes himself such a controversial figure.
Ultimately, you want to be on the people's radar (whether positively or negatively) in order to succeed. The same concept applies to the crypto industry. We want people to feel something about crypto, instead of just ignoring it. Whether Trump's team launched these memecoins to draw attention to themselves, or to crypto in general, is another question.
Due to the timing (right before inauguration) and the absolutely horrendous initial token allocation, Trump's meme coins temporarily painted the crypto industry in a bad light. Moreover, they "stole" liquidity from other cryptocurrency projects, pissing off traders and investors in the process. That said, we need to take a step back, and see how this event will impact crypto in the long-run.
Feeding The Trend
The reality is that many of us are still stuck in the fiat mindset, constantly preoccupied about the dollar value of our portfolios. While a market dip can certainly be painful temporarily, in the long-run the fiat valuations don't really matter. What truly matters is the trend towards mass adoption, which accelerates as the industry gets more publicity.
Let's think about the other negative events that we have experienced throughout crypto's short history. For example, the Mount Gox fiasco, the QuadrigaCX bankruptcy, Terra/Luna depegging, as well as the FTX collapse. At the time, these events seemed catastrophic to the industry, but in the long-run, they have actually drawn more people in.
These pitfalls are inevitable as we build out a new crypto-based economy. In order to get good at anything (golf, language, or music for example) you have to make a lot of mistakes and learn from them. If you're building something truly great, there will inevitably be setbacks and failures along the way. Since crypto is an unregulated market, these mistakes are allowed to happen, and the learning process quickens.
Until next time...
People are worried about the negative ramifications Trump's meme coins may have on the crypto world. But, at the end of the day, nobody has the power to destroy the growth of a decentralized industry. Not the government of China (who has tried to ban crypto multiple times), nor the president of the United States. In fact, their efforts to either hinder or promote the industry will only cause the rate of adoption to increase.
If you learned something new from this article, be sure to check out my other posts on crypto and finance here on the Hive blockchain. You can also follow me on InLeo for more frequent updates.