In crypto twitter, there are 2 variables that can make people lose It: hype and FOMO. The recent $TRUMP frenzy provides a textbook case of how hype can dominate decision-making, even in the absence of substance. This hunger games saga demonstrated the powerful intersection of branding, psychology, and market behavior.
So let’s break down how $TRUMP captivated the market, the psychological levers it pulled, and the lessons marketers can take away.
1. Hype and Anticipation: Fueling the FOMO Machine
Hype drives perceived value, often decoupled from intrinsic utility. $TRUMP rise was a textbook case of hype feeding into FOMO. Despite having no official roadmap or product plan, it generated:
- Massive FOMO Before Inauguration:A lot of degens were dumping other coins to buy Trump Coin, believing in its potential before the “inauguration” event. This behavior shows that market participants often conflate anticipation with certainty, leading to “irrational “ decision-making.
- Social Proof Amplified FOMO: CT amplified the excitement. The more people bought in, the stronger the bandwagon effect became, reinforcing the illusion of inevitability.
Marketing Insight: Hype, when carefully orchestrated, can create a self-reinforcing cycle of demand. However, as seen in the $TRUMP dump before the inauguration, momentum must be managed carefully to sustain interest beyond initial excitement.
This hype was fueled by KOLs ( Key Opinion Leaders). Without them, this would have been just another fleeting idea on Crypto twitter. But instead, it became a wildfire narrative driving massive engagement across the board.
As you can see, the spike in price after certain tweets by certain KOLs proves that KOLs are the gatekeepers of hype. They’re not just amplifiers but the architects of sentiment, capable of shifting markets, narratives, and even entire industries with their reach.
Source: Cookie3 KOL Intelligence
2. Branding as Utility: The POTUS Aura Effect
$TRUMP has no unique features or underlying utility; it’s just a memecoin, yet its association with Donald Trump created instant cultural relevance. Trump’s brand, built on polarizing charisma, became the sole “utility” of the coin. This phenomenon demonstrates:
- Popularity Equals Power:
- Trump’s ability to dominate headlines translated into $TRUMP dominating market sentiment. High-profile endorsements create a "halo effect," elevating the perceived value of an asset, although there was literally an absence of tangible plans.
- Emotional Attachment:
- Trump’s polarizing persona elicited strong emotional reactions, whether admiration or pure hate. This emotional connection created a sense of identity for degens, aligning their investment with their beliefs or affiliation. In CT, attention and afflicted emotion are kinda THE currency.
This has significantly spiked his smart engagement and expanded his reach across key audiences.
Due to $TRUMP’s launch, followed by Melania’s entry into the memecoin space, and now even their grandchild reportedly aiming to follow in the family's footsteps, the "PoliFi" narrative has skyrocketed to become the top trending narrative in just four days.
Source: Cookie3 KOL Intelligence.
3. The Power of Memes: Humor Meets Speculation
Memecoins thrive on humor, absurdity, and relatability, and $TRUMP was no different. Scientifically, humor lowers psychological barriers, making speculative assets seem less risky and more approachable. We can say that $TRUMP’s success hinged on:
- Cultural Resonance:
- The absurdity and irony of a POTUS launching a memecoin was inherently shareable. Memes surrounding Trump and the ascending family proliferated across social platforms, driving viral engagement.
- Simplifying Complexity:
- Memes break down complex ideas into “digestible” formats. The narrative around $TRUMP, its association with Trump, its perceived potential, and its comedic value, was easy for degens to spread.
This is why we are in the age where attention scarcity, humor and memes are powerful tools to capture and sustain engagement which is a phenomena that has always powered CT and let’s say was a key pillar in every Web3 marketing strategy. However, brands must balance virality with substance to avoid a short-lived hype cycle.
Speculative assets such as memecoins are highly susceptible to emotional decision-making. Understanding these biases can help marketers craft campaigns and navigate KOLs that either capitalize on or mitigate such behaviors.
4. Lessons for Marketers
a. The Power of Narrative
$TRUMP’s success hinged on a compelling story: the POTUS launching a memecoin tied to his larger-than-life persona. This narrative resonated across demographics, proving that storytelling drives engagement and loyalty.
Takeaway: Marketers should focus on creating narratives that tap into cultural, emotional, or ideological touchpoints. The right story can elevate even a utility-less product into a market sensation.
b. Identity and Belonging
$TRUMP wasn’t just a financial asset, it was some sort of tribal marker, signaling alignment with Trump’s ideology or brand. This phenomenon highlights the importance of identity-based marketing.
Takeaway: Successful brands create communities where customers feel they belong. Products that align with identity, whether political, cultural, or social, are more likely to generate loyalty and advocacy.
c. The Double-Edged Sword of Hype
Hype drives attention, but it’s inherently unstable. $TRUMP’s rapid rise and fall underscore the importance of sustaining interest beyond the initial launch.
Takeaway: Hype is a tool, not a strategy. Marketers must plan for the long term by delivering consistent value and evolving the narrative to retain interest.
d. Is Virality the New Currency?
$TRUMP’s viral success underscores the role of social media platforms and KOLs in shaping market sentiment. The ability to dominate conversations, a power that KOLs hold, can be a really valuable currency;
Takeaway: Build campaigns that encourage organic sharing and leverage KOLs to amplify reach. However, ensure that virality is rooted in authenticity to avoid backlash or short-lived momentum.
5. So CMO or no CMO?
This saga is honestly a fascinating case study in branding, hype, and market psychology. It shows how identity, narrative, and emotional resonance can drive massive market movements, even in the absence of intrinsic value.
For marketers, it’s a reminder that understanding human behavior is the key to crafting campaigns that resonate and drive action.
For founders, it’s an undeniable lesson: marketing isn’t optional, it’s foundational. Having a CMO and the right marketing team that truly understands market dynamics and the psychological drivers behind them can be the difference between your project thriving or dying in obscurity.
It’s not just about shouting into the void; it’s about deeply knowing what makes people tick and creating a brand around it.
6. KOL Intelligence: Turning Hype into Strategy
The $Trump phenomenon proves how critical KOLs are in creating and sustaining narratives. But as a marketer, how do you know which KOLs to work with? Which ones drive the most smart engagement, bring in actual users, or generate meaningful ROI?
That’s where KOL Intelligence comes in.
- Identify Key Players: Pinpoint the KOLs driving the most impactful conversations, whether it’s about memecoins, or your project.
- Measure Real ROI: Calculate exactly how much influence a KOL brings to the table, no more guesswork.
- Track Smart Engagement: See which narratives are trending and which KOLs are fueling the fire.
- Stay Ahead of Trends: Anticipate emerging narratives, giving you the edge to adapt your strategy in real time.
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Final Thoughts
In crypto twitter, there are 2 variables that can make people lose It: hype and FOMO. The recent $TRUMP frenzy provides a textbook case of how hype can dominate decision-making, even in the absence of substance. This hunger games saga demonstrated the powerful intersection of branding, psychology, and market behavior.