Original article by: Anderson Sima, Executive Editor, Foresight News
The crypto market is once again celebrating Trump.
But I am not excited, not because I do not hold SOL, XRP, and ADA tokens, but because a series of measures taken by President Trump after taking office have made me excited but also worried about the crypto industry.
Just before the Trump administration announced its initiative to promote strategic cryptocurrency reserves on March 2, another diplomatic event that attracted global attention was also worthy of attention from the crypto industry.
On February 28, US President Trump, Vice President Vance and Ukrainian President Zelensky, who was visiting the White House, had a heated argument in front of the media. This unusual argument in diplomatic practice revealed the resentment of the current US government over its unlimited responsibility to lead world peace. The key dispute was Trumps unwillingness to pay an undue price for other countries - that is, America first.
Yes, this is Trump’s campaign slogan and governing philosophy. If you understand this, you can also see what kind of political motivation is behind Trump’s crypto-friendly new policy?
America First Does Not Mean Financial Equality
Trump’s core philosophy is “America First”, and his policy goals have always been centered around consolidating the United States’ global hegemony and economic interests. In the field of cryptocurrency, although he claims to promote the United States to become the “global crypto capital”, the essence of his policy is to use state power to implement trade protectionism and ensure that the United States always maintains its leading position in the world.
So what is the essence of cryptocurrency? There is actually no essential difference between cryptocurrency and traditional financial markets in terms of specific products and forms. Even cryptocurrency is now included in the category of major commodities and can be traded in ETFs or futures. But there are so many financial products in the world, what is so special about cryptocurrency?
As a practitioner, my answer is that the emergence of cryptocurrency is essentially a revolutionary financial equality movement. From the perspective of Marxist economics, since its birth, financial products, as a derivative system of capitalism, have always represented the interests of the elites and are a tool for unlimited expansion of capital, but they do not serve the proletariat and prefer big capital and power machines.
But the emergence of Bitcoin is precisely the dissatisfaction and innovation of this system. The design of cryptocurrency and the emergence of smart contracts allow all investors to enter a brand new financial system without permission or threshold. This system is global, permissionless, and even open and transparent from the beginning. If America First is to be put first, blockchain technology would not be invented by an anonymous person.
If the United States really realizes the strategic reserve of Bitcoin, I am very excited about it. But four years later, will the new US president still stick to this policy? Can the market withstand the huge selling pressure at that time? Will the Democratic Party re-establish the cryptocurrency prison? The market is always timely, and the long-term is not in the consideration of traders, but as a long-term practitioner, this question is very important.
Trump has opened Pandoras box
In addition to the motivations of relevant policies, the TRUMP and MELANIA meme coins launched by the Trump couple not only increased the speculative bubble in the crypto market, but also opened the Pandoras box of celebrity coin issuance, triggering a chain reaction.
Trump started the practice of issuing coins by the president himself, which also created a hot spot in the market. After the TRUMP coin was launched, its market value once soared to around 80 billion US dollars, and then adjusted to 10 billion US dollars, causing heavy losses to those who chased high prices. Similar cases spread further after his wife MELANIA and the President of Argentina followed suit, forming a vicious cycle of celebrity-speculation-collapse, draining market liquidity and affecting the positive image of the industry and a healthy market environment.
Recently, American celebrity Kanye West is also going to join the ranks of issuing coins. He has been promoting and announcing on social media early on. Does the market need so many celebrity memes? The evolution of a token’s life cycle from several years to several hours has greatly increased the difficulty and risk even for dedicated traders.
In the past, the strict supervision of the SEC stifled industry innovation while protecting the asset security of investors. But now, under the personal leadership of Trump, the extremely fast coin issuance process and extremely low regulatory costs have made the crypto industry a leek-cutting holy land, right? So we joked that the fraud group in northern Myanmar has begun to move into the field of cryptocurrency. Trumps coin issuance behavior has turned the industry into a tool for political manipulation, weakening the outside worlds serious understanding of blockchain technology.
Lessons from the Past: From Musk to Trump
Trump is not the first celebrity to use his influence to stir up the crypto market. Tesla CEO Musk was the strongest caller in the last cycle. He once pushed Bitcoin up through Tesla’s purchase of Bitcoin, and then turned to Dogecoin to cause Bitcoin to plummet. In this cycle, Trump has become the new caller king.
It is not difficult to find that as extremely conceited elites, Trump and Musk both have unpredictable market attitudes, especially President Trump, who is more of a businessman. However, when cryptocurrency is beneficial to his political influence, he embraces it without hesitation, just as he strongly criticized cryptocurrency a few years ago.
If the industry relies too much on the endorsement of centralized authorities such as Trump, we will deviate from the original intention of code is law.
The crypto industry needs to reconstruct its independent narrative
Trumps crypto policy seems to give the industry a green light, but it actually hides traps. His America First logic instrumentalizes crypto technology, the wave of celebrity coin issuance has spawned a speculative bubble, and the strong binding of policies and markets has plunged the industry into cyclical turmoil.
We must clearly realize that true financial equality cannot rely on the giveness of political strongmen, but should return to the underlying value of technology neutrality. Only by adhering to the decentralized narrative and continuously innovating technology can we find opportunities to change the world like AI.
