Recently, the crypto space staged a jaw-dropping farce—the Trump crypto wallet incident. Behind this seemingly simple event lies a common scheme in the crypto world to harvest unsuspecting investors, so all investors should keep their eyes wide open!
Incident review: A certain team announced the launch of a crypto wallet under the banner of Trump. This news was like a stone thrown into a calm lake, instantly stirring up waves. The price of the ME token surged by 40%, and a large number of investors rushed in, with the number of registered users skyrocketing by tens of thousands in a short time. However, just two hours later, Trump's eldest son, Donald Jr., personally stepped forward to refute the rumors, stating that the family had no connection with the project, and this farce was instantly punctured, revealing the bubble of “false prosperity.”
Behind the market frenzy, there is actually a carefully planned prelude to a “harvest”:
- Information manipulation: The news released by Walter Bloomberg is not from the official Bloomberg, significantly undermining its authority and credibility; the alleged collaboration statement with Magic Eden has also not been verified, completely fabricated. Criminals exploit investors' trust in authoritative news, fabricating false information to induce investors to follow suit.
- FOMO effect (fear of missing out): Many investors lose their rationality upon seeing the name “Trump,” blindly following the trend without considering the project's fundamentals or verifying the authenticity of the news. This blind chasing of price increases makes them easy prey.
The crypto space seems full of opportunities for financial freedom, but in reality, it is fraught with traps:
- Proliferation of false information: Nearly 70% of cryptocurrency projects have issues with information transparency. In this “wild jungle” of the crypto world, where effective regulation is lacking, it is not uncommon for project parties to randomly release false information and conceal important details, making it difficult for investors to discern truth from falsehood.
- Regulatory vacuum: According to data from the U.S. SEC, the amount involved in cryptocurrency fraud cases exceeded $4 billion in 2023. Due to its decentralized and cross-border characteristics, regulation in the crypto space is extremely challenging, providing opportunities for criminals; various frauds and illegal fundraising activities are rampant.
- Price manipulation: In this incident, the trading volume of the ME token surged by 300% within 24 hours after the news broke, clearly indicating that someone was manipulating the price behind the scenes. They attracted investors by pumping up the price, then sold at a high point to complete the “harvesting” of investors.
In such a chaotic crypto world, how can investors protect themselves?
- Verify official information: Only trust news released by Trump team's official website and verified social media accounts. Remain highly vigilant about information from unknown sources and do not be easily deceived.
- Beware of unusual fluctuations: When cryptocurrencies experience a single-day increase of over 30%, it is likely a pump-and-dump trap. Investors should calmly analyze and not be blinded by a momentary price surge.
- Control risks: The funds invested in such speculative assets should not exceed 5% of the total investment amount. Diversify investments reasonably to avoid putting all eggs in one basket, thus reducing risks.
In fact, the Trump family is indeed developing the World Liberty Financial wallet. The previously issued NFT series has accumulated a trading volume of over $50 million, but this crypto wallet incident is purely a third party riding the hype. The Trump family has its own plans in the crypto space, but it is definitely not through such underhanded methods.
Celebrity projects in the crypto space are 90% short-term hype. What seems like an enticing feast of wealth often hides enormous risks behind it. Investors must remember three iron rules: verify news sources, control positions, and maintain rationality. Otherwise, they are very likely to become victims of harvesting. Follow me for a deeper understanding of the crypto space, to see through the phenomenon to its essence, and together navigate the complexities of the financial market.