Recent moves by US President Trump in the cryptocurrency field have sparked heated discussions. Well-known crypto KOL Ice Frog (@Ice_Frog666666) directly pointed out in a tweet that Trump is using a combination of political power and capital to leverage the decentralized nature of blockchain, creating a hidden and cruel new system of exploitation, and pushing Satoshi Nakamoto's vision of asset freedom towards a high-profile "state funeral" grave.
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ToggleThe Colonial Experiment of Power: The Crypto Hegemony of Tweet Manipulation and Insider Trading
Ice Frog sarcastically commented in his tweet that while Trump appears to be supporting cryptocurrencies on the surface, he is actually using political power to launch a colonial plan against the decentralized market:
When you stay up late watching Trump's tweets, you may think you are participating in a financial revolution, but you may only be participating in the crowd-funding of the electricity bill at Mar-a-Lago.
Two recent news items support this view:
Lookonchain data shows that the team behind the meme coins LIBRA and MELANIA, which are suspected of insider trading and market manipulation, recently used "wash trading" of low-cap meme coins like POPE to launder funds worth up to $2.73 million.
A whale recently used a 50x leverage to go long on BTC and ETH after a multi-day crash, and the position, which was close to the liquidation price, drew attention. Just after Trump tweeted about a "crypto asset strategic reserve" yesterday, the address had already made $50 million in profits, making one wonder about the possibility of insider trading.
Including the previously reported Trump family's involvement in issuing and holding the meme coin $TRUMP, and their subsequent multiple X pump-and-dumps, Ice Frog directly stated: "If this is not insider trading, then what is?"
Trump has combined political information and capital leverage, making wealth extraction as "simple as breathing", and there are currently no laws that can hold him accountable.
The Trilogy of Political Capitalization: Tweets, Leverage, and Market Manipulation
Ice Frog pointed out that Trump has created a mode of "political power" combined with the "crypto ecosystem" to reap profits, the core of which is to use information privilege to create market volatility and then leverage it for arbitrage. He likened this to a "chain of policy leaks, market manipulation, and lobbying for legislation".
The key steps of this model include:
Triggering market volatility through social media: Influencing the crypto market through social media posts, with retail investors quickly following the trend and speculating.
Leveraged trading for profits: Trump and his associates use leveraged trading to make huge profits when the market experiences violent fluctuations.
Legalizing the policies: The US SEC defines meme coins as "not securities", indirectly providing legitimacy for the speculation of such tokens.
As previously reported, Trump's meme coin $TRUMP reached a market cap of over $36 billion on the day of its exposure, with his family's holdings accounting for 80%, which is seen as a form of political donation.
Ice Frog likened this model to religious control:
It's like religious control: "Create fear, sell indulgences, monetize power", and the most ingenious part of creating power is to let investors pay for the illusion of wealth.
He also stated that when the "code is law" of the crypto world meets the "power is law" of the real world, the former will collapse instantly.
The Crypto Paradox: The More Decentralized, the More Concentrated the Control of Power
Ice Frog pessimistically concluded that the original intention of blockchain was to disrupt traditional power structures, but it has now become a "control weapon" for those in power:
The politicians in the White House and the capital on Wall Street are reconstructing the power relations on the chain, and under the guise of decentralization, they have created a more secretive and cruel new system of exploitation.
And it is supplemented that "the ironic and bloody fact is that the blockchain not only failed to rewrite traditional finance, but also gave politics a more direct path of manipulation and a sharper weapon of power control."
He frankly admits that Trump, under the slogan of "making America great again," is actually sacrificing the anarchist and financial autonomy ideals of Satoshi Nakamoto, and is conducting a high-profile "state funeral" for them. He warns the retail investors:
You think you are pursuing financial freedom, but in the eyes of power, you are just a number that can be zeroed out at any time.
(Insider trading, presidential coins, and the dark secrets behind the LIBRA meme coin crash)
The golden age of encryption, or a new form of power harvesting?
Trump's crypto-friendly stance seems to bring prosperity to the market, and even open up the "golden age of encryption" that shines in the eyes of every participant in the crypto ecosystem, but behind it may be the bloody reality of power colonization and wealth plunder.
From insider trading to policy manipulation, this "path of crypto market makers" in history may not be a technological revolution, but a subversion or slap in the face of the decentralization ideal:
Faced with this chess game of finance and politics, investors may only struggle between dependence and resistance, trying not to become cannon fodder on the chessboard.
Risk Warning
Cryptocurrency investment is highly risky, and its price may fluctuate violently, and you may lose all your principal. Please carefully evaluate the risks.
