Trump's 'Leek Cutting' Technique in the Cryptocurrency Market: Fluctuations and Trust Collapse Under the Political Scythe
As a businessman-turned-president, Trump has turned the cryptocurrency market into the 'main battlefield' for family wealth harvesting since he took office in 2025. From issuing air coins to manipulating policy information, his combination of political power and asymmetric market information has not only led to heavy losses for retail investors but has also severely undermined the trust foundation of the crypto market.
I. The Precise Harvesting of 'Trump Coin': Insider Trading and Family Cashing Out
Issuance of Air Coins and Token Monopoly
The Trump family launched the meme coin $TRUMP in January 2025, with 80% of the total supply of 1 billion coins controlled by the family, creating an illusion of liquidity through the Solana chain. The token price soared from $0.18 to $75, with a market cap exceeding $14.5 billion, but after attracting a large number of retail investors, it plummeted to $17, a decline of over 77%. On-chain data shows that family-affiliated wallets made large purchases before the token went live and sold off after favorable policy announcements, cashing out over $6.6 billion.The 'Double Act' of Policy and Market Manipulation
Trump's team synchronized policy announcements with token sell-offs: first, they loudly announced the 'Bitcoin Strategic Reserve Plan' to boost market sentiment, then allowed theTRUMPplummet. For example, after the White House crypto summit in March 2025, TRUMP's market cap evaporated by over 60%, while during the same period, the family's real estate projects profited by 23% due to rising industrial land prices.
II. The Bidirectional Harvesting of Policy Manipulation: Tariffs and Regulatory 'Volatility Arbitrage'
Market Panic Under Tariff Nuclear Explosion
After Trump imposed a 25% tariff on Mexico and Canada, Bitcoin's single-day drop reached 7% (from $105,000 to $92,000), with $1.6 billion in liquidations across the network; two days later, he created a rebound by 'exempting auto tariffs,’ directing funds to family-affiliated assets. Moody's analysis pointed out that this artificially created market volatility provided insider traders with at least a 12% arbitrage opportunity.Regulatory Easing and Institutional Collusion
Trump appointed loyalists to control the SEC, withdrawing lawsuits against exchanges like Coinbase to pave the way for Wall Street capital to enter.47. Institutions like BlackRock absorbed 21% of the market's circulating supply through Bitcoin ETFs, then collaborated with the Trump family to sell off, forming a harvesting loop of 'policy benefits - institutional pump - retail take-up - collective dump.'
III. The Destruction of Market Ecology: From Liquidity Exhaustion to Faith Collapse
Retail Investors Reduced to 'Policy Fuel'
Trump's manipulation has led to a surge in volatility in the crypto market: during the launch of $TRUMP, tokens on the SOL chain experienced daily fluctuations exceeding 60%, while the correlation between Bitcoin and the US stock market rose to 0.5, creating a 'double whammy' trap. Data shows that 85% of retail investors who followed Trump's policies lost money and exited within three months.Crisis of Trust and Capital Flight
Confidence in the cryptocurrency market for 'politically endorsed assets' has plummeted. The correlation between Bitcoin and the US stock market has dropped from 0.8 to -0.3, leading investors to turn to gold for safety; the share of the renminbi in cross-border payments among BRICS countries has risen to 28%, indicating a loosening of the US dollar's hegemony. Nobel economist Stiglitz warns that this pattern could lead to a 'lost thirty years' in the United States.
IV. Long-term Warning: When Political Scythes Disassemble the Ideal of Decentralization
Trump's harvesting logic exposed the systemic vulnerabilities of the crypto market:
Institutionalized Regulatory Arbitrage: Texas passed a green mining subsidy bill to channel benefits to family mining projects;
Weaponization of Information: The timing of policy releases creates algorithmic harvesting opportunities on the order of 300 milliseconds, leaving human investors with no chance of winning;
Alienation of Value Narrative: Satoshi Nakamoto's ideal of 'decentralization' has been replaced by political manipulation, and the market has become a tool for power rent-seeking.
Conclusion
Trump's crypto 'business acumen' confirms the tenet of 'no trading without leverage' from 'The Art of Trading,' yet his behavior of transforming the national machinery into a family arbitrage tool is over-drafting the future of the crypto market. When policy dividends become the most exquisite bait, investors must penetrate the narrative fog and adhere to the essence of value to avoid becoming 'fresh leeks' under the political scythe. For the cryptocurrency community, the road to rebuilding trust may be longer than the fight against centralization.
