February 15, 2025 Cryptocurrency News Brief: Politician Coin Launches Cause Turmoil, Traditional Institutions Enter

1. Politician Coin Launches Spark New Controversy: Argentina's LIBRA Coin 'Flash Crash' Reveals Regulatory Vacuum

Argentina's President Milei has followed Trump's lead in issuing the LIBRA token, causing severe market fluctuations yesterday. The token saw a market cap plummet from $4.6 billion to $590 million within hours of the president's official tweet, a drop of over 87%. On-chain data shows that three insider addresses positioned themselves before the tweet, cashing out $20.18 million, while the team profited $107 million through liquidity pool manipulation. Milei later deleted the tweet, claiming he 'did not participate in the project,' and was mocked by the community as a 'national-level scam.'

Sharp Commentary: Political endorsements are becoming a new type of risk in the crypto market. The LIBRA incident has severely impacted retail investors and has led to losses exceeding $2 million for Solana ecosystem developers and institutional investors, exposing the conflict between the ideal of 'decentralization' and the realities of power.

2. Traditional Financial Institutions Accelerate Entry: Custody Services Become New Battleground

- Citigroup announced it is exploring cryptocurrency custody services, and State Street plans to launch a digital asset custody solution in 2026, marking further infiltration of traditional financial giants into the crypto infrastructure space.

- Market Interpretation: The expansion of custody services may drive institutional capital into the market, but the debate over centralized custody versus crypto-native ideals remains contentious.

3. Regulatory Dynamics and Industry Trends

1. Compliance Process: The U.S. Treasury Department has recently signaled that it may incorporate Bitcoin into a 'gold-like' reserve asset framework, promoting long-term bullish expectations.

2. Risk Warning: The China Academy of Information and Communications Technology has initiated the localization adaptation assessment of the DeepSeek model, emphasizing the need to prevent algorithmic manipulation of market risks in the integration of AI and blockchain.

Conclusion

Yesterday's cryptocurrency market showcased a 'magical realism' drama: the president's scythe harvests global investors, traditional banks scramble for custody profits, and retail investors search for a foundation of faith amid volatility. When political speculation intertwines with financial revolution, the only certainty may be that Bitcoin's underlying code is more trustworthy than the president's promises.

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