(Public) Memo - Turning Air Into Gold

The crypto craze is in its final innings.

By: Wilson

People are turning rocks into gold.

No wait, it's not rocks they are turning to gold. It's air.

Yes, people are turning air into gold.

And to make matters better or worse, it's not just anyone doing it, it's the President of the United States of America, Donald Trump.

Actually, it's not just Donald Trump, it's his wife and possibly his two sons who will soon follow in this mythical quest of turning air into gold.

You see, in the world of alchemy, the concept of turning rocks into gold is the ultimate mythical goal. By transmuting base metals into gold, you need the philosopher's stone. And sadly, no one ever achieved this in alchemy.

But I come bearing great news. You no longer need the philosopher's stone to turn rocks into gold, because all you really need is 1) million of followers and 2) the audacity to not care at all about your reputation in the long run.

If you have those two key ingredients, then millions await. What are you waiting for? Here's the ultimate guide.

How to turn air into gold for dummies 101

On Jan 17, Donald Trump, soon to be US President, announced on X the release of the official Trump Meme coin called $TRUMP. Since the start of trading, the implied market cap is ~$60 billion.

Note: The $12 billion market cap is off of the circulating supply and not the total supply.

Trump has managed to multiply his net worth by 20x following the release of this meme coin. And what's more astonishing about this achievement is that Melanie Trump, the First Lady, soon followed suit today with her very own meme coin.

And she too has created billions out of thin air.

How much?

$12 billion

So what are the steps necessary to create gold out of thin air?

• Step 1: Become the President of the United States of America

• Step 2: Change all crypto-related regulations

• Step 3: Create your own meme(shit) coin

• Step 4: Sell it to your followers

• Step 5: Create a meme(shit) coin for all your family members

• Step 6: Rinse and repeat

I hope this was helpful, goodbye.

Let's be serious for a second here, how can any of this end well?

All jokes aside, we should all take a step back and just admire the times we live in for a second. Bitcoin, which started with some merits, gave birth to the whole cryptocurrency industry, which is quickly morphing into something that's going to spiral out of control.

In my memo titled, "Gold Rush in Crypto," I wrote that it only takes 30 seconds to create your own shitcoin. So what's going to prevent just a gold rush into creating your shitcoin? I mean we are already seeing this with the hawktuah girl getting sued and now Ryan Fournier pulled something off similar:

And soon after he saw how much his shitcoin was worth, he tried to dump it as fast as he could not realizing he was the market:

All of this has been well documented on X, so if you are fascinated, you can start here.

But what you are seeing here is just a precursor to what's to come later this year. Similar to the grift that was the NFT market, shitcoin, and meme coins are next. These worthless pieces of financial instruments are the newest attempt by human beings to make gold out of rocks or thin air. There is no intrinsic value to any of the craziness we are seeing here. It is literally the greater fool theory and the person that ends up holding the bag will be left with a pile of turds.

And unbeknownst to Trump followers, they are the liquidity providers. As Trump and his family members start to exit out of these shitcoins, people who are real believers will not only lose their hard-earned money by transferring wealth to him, but people will have their lives ruined because of this.

You don't have to be a rocket scientist to see the writing on the wall. It's an inevitable outcome and time will prove just how stupid we are to have even gone through such an experience.

The bigger implications

I think there's something bigger to be said about all of this madness. It is just a sign of the times and if you thought the dot-com bubble was crazy, I think this is 1,000x worse. By simply creating nothingness out of nothing and asking people to buy it, you can create billions in paper wealth, if that's not the definition of a bubble or a scam, I don't know what is.

But if you take a step back and think about how all of this plays out, you can kind of grasp the bigger picture.

You see, Bitcoin's strategic reserve is the real reason everyone got really bullish crypto and now with Trump getting involved, you know a crypto reserve increases in probability. But you must also realize that as the Trump family tries to exit out of these meme/shit coins, the liquidity funnel starts to dry up.

In fact, you almost want the bubble to get so big to the point that any type of liquidity exit event will in itself pop the bubble. So despite the US government possibly being a counterparty to the cryptomania, there will be a liquidity event at some point down the road, and you eventually run into the issue of not having any more suckers.

Or then there's also the bigger issue of other countries becoming potential buyers in the Trump shitcoins. Over the weekend, I asked people on X a serious question, what's to stop a country like China from secretly buying the Trump coin and in exchange for no tariffs?

The answer is nothing. In fact, because crypto transactions are very secretive in nature (you don't know who owns what wallets), it would be incredibly difficult to trace the origins of the fund. So there's nothing, in theory, preventing back channel "hush-hush" funds from being transferred to Trump.

Now am I saying that this will happen? No, but since he announced the release of his meme coin, I think this greatly increases the probability.

Bubble

Everything you are seeing today is the final stages of a massive bubble unfolding. Like NFTs, shit/meme coins are the final straw that broke the camel's back. At some point down the road, the Trump family will want to crystalize those gains, and that will require an enormous amount of suckers to absorb the liquidity. In my life, I've never seen an orderly liquidation. And in the case of a supply-squeezed bubble like the one we are seeing with the Trump coin, this time is no different.

And when this bubble pops, everything correlated to it will pop along with it. It will be 2022 on steroids and I can't wait to see what the aftermath will look like.

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours.