Meme Coins and Peak Absurdity
In 30 years as an investor, the only time we have rivaled the absurdity of the current meme coin craze is the dot com bubble. In that case, there were very real companies with VERY crazy valuations because people were making up values for a new business model. They used eyeballs, page views, and all kinds of other crazy metrics to justify the valuation of companies with little revenue and nothing but losses as far as the eye could see.
Eventually, sanity returned to the market when the bubble burst in 2000 and it would take more than 17 years for the $.IXIC(.IXIC)$ to get back to bubble highs.
The latest bubble is in memes, which are quite literally, an “expression of support” for “ideals and beliefs” which seems even more absurd in a lot of ways than the dot com bubble. From the official website of the Trump meme coin launched on Friday:
Trump Memes are intended to function as an expression of support for, and engagement with, the ideals and beliefs embodied by the symbol "$TRUMP" and the associated artwork, and are not intended to be, or to be the subject of, an investment opportunity, investment contract, or security of any type.
GetTrumpMemes.com is not political and has nothing to do with any political campaign or any political office or governmental agency. CIC Digital LLC, an affiliate of The Trump Organization, and Fight Fight Fight LLC collectively own 80% of the Trump Cards, subject to a 3-year unlocking schedule. CIC Digital LLC and Celebration Cards LLC, the owners of Fight Fight Fight LLC, will receive trading revenue derived from trading activities of Trump Meme Cards.
Trump Memes
This has to be the top, right? Can it get crazier than the President of the United States of America launching a meme coin?
I’m having trouble wrapping my head around how we got here and what happens next.
Maybe I’m getting old?
Maybe the world is now a meme?
Or maybe sanity will return eventually.
Unless there are major changes in the next few days, I’m going to make my first short investment in Asymmetric Investing history this week. It will be a limited downside and high potential upside investment, just like the stocks I buy.
At this moment of absurdity, I see too much risk to ignore and need to have some exposure to some upside in the case of a crash in the next two years. You may not like the pick. But if I’m wrong the Asymmetric Portfolio will likely charge higher making any loss from one short position meaningless. And if I’m right, it’ll ease the pain of any market crash.
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