Recently, the cryptocurrency world seems to be staging a magical realism drama—first, former U.S. President Trump launched his own cryptocurrency, then the president of the Central African Republic quickly followed, and Argentine President Milei also joined in the coin issuing frenzy. Even more astonishingly, it is rumored that next month, the British Prime Minister may also venture into this field. This inevitably makes one chuckle, as if today’s presidents wouldn’t feel embarrassed greeting on the international stage without launching a coin! However, the truth is often more complex than appearances; the schemes behind these so-called 'presidential coins' are likely to surpass those of health supplement sales by square dance aunties.
Today, let me use simple and understandable language to unveil the secrets behind celebrities issuing coins, to explore whether this is a great opportunity for wealth or a meticulously planned harvesting feast.
From the TRUMP coin of the Trump couple skyrocketing overnight by several times, to Argentine President Milei cashing out hundreds of millions of dollars through issuing coins, meme coins endorsed by political figures are stirring up a new wave of speculation. However, data reveals a shocking fact: as many as 95% of participants ultimately lose and exit. Nevertheless, retail investors continue to rush in like moths to a flame. Behind this game led by the 'presidential-level scythe' lies the most brutal survival rule of the cryptocurrency world.
1. Political Celebrity Meme Coins: A Harvesting Trap Under the Halo of Traffic
During the U.S. election period, the Trump team launched the TRUMP coin, which soared from $0.018 to over $70 in just 48 hours, then plummeted to $14, and now stabilizes around $18.58. Behind this is a carefully planned harvesting quadrilogy: the president tweets to signal, retail investors buy frantically, the dealer secretly sells to cash out, and finally, the president deletes the tweet and plays dumb. The dealer accumulates a large amount of coins in advance, sells at a high price after retail investors enter, and ultimately drains the liquidity pool to escape with a full wallet.
2. The Retail Investor Predicament: Why Do They Keep Falling Into the Same Pit?
After communicating with some investors who suffered losses, I found that they generally exhibited three typical psychological traits. First is the 'gambling table effect', holding the mindset of 'it's just the cost of a hot pot meal, I won’t feel bad if I lose', thus falling right into the dealer's trap, where countless small losses from retail investors accumulate into huge profits for the dealer. Second is the 'herd effect', seeing everyone in the group sharing profit screenshots (which are actually all setups), blindly following the trend to buy in, unaware that on-chain data shows that 90% of the coins are held by the dealer, while retail investors are only buying small fractions. Third is 'authority superstition', believing that when a president endorses it, it equates to national guarantee, not realizing that the coin issuing team may just be a group of programmers staying overnight in an internet café.
A bull market is a meat grinder for ordinary people, yet a cash machine for the awakened. From Dogecoin to presidential coins, history is astonishingly similar: using wealth myths to attract traffic and completing wealth transfer through token mechanisms. Before the regulatory sword falls, restraint from hot topics is the greatest responsibility to one’s wallet. Remember, living long in the cryptocurrency world is more important than betting big.
Have you ever experienced losses or profits in projects endorsed by celebrities? Feel free to share your story, so we can discuss how to stay clear-headed in the cryptocurrency world and avoid becoming the harvested leeks.