Currently, market sentiment is being driven by rampant speculation, but the aftereffects are significant.
This wave of “Trump Coin” is completely a crossover from the entertainment industry's traffic play into the crypto market, with charts, giveaways, and celebrity endorsements, directly injecting the market with a dose of excitement. The coin price violently surged by 50% in the short term, attracting retail investors to rush in, but essentially, the project party is using Trump's IP to engage in a ‘Ponzi scheme.’
Onlookers enjoy the fun, but seasoned investors know better: this kind of air coin reliant on celebrity endorsements will inevitably crash after the hype, leaving only the last buyers in a chaotic situation at the top.
2. The celebrity effect has become a tool for harvesting retail investors, and regulatory red lines are approaching.
Trump personally getting involved to endorse the coin has turned “Trump Coin” into a politically entertainment-focused speculative asset. But the risks of playing this game are extremely high: first, the coin's price completely relies on Trump's personal endorsement; once he turns against it or policies shift, the price could drop to zero in an instant; second, this blatant ‘issuing coins to make money’ could trigger a regulatory crackdown. The U.S. is likely to take action, especially since the easy collection of $350 million is clearly a trick to harvest retail investors.
3. Project parties make guaranteed profits, while retail investors become high-end ATMs.
The project party's operation is astutely clever: issuing coins to raise $350 million, then further boosting the coin price through a ‘ranking dinner,’ while waiting for retail investors to enthusiastically take over. Once they hold a large number of coins, the team can cash out at high prices, achieving a perfect harvest. What's more ridiculous is that the top 220 coin holders seem to be ‘awarded,’ but in reality, they're just competing against each other to lock up their coins, creating a false sense of prosperity. Ordinary players think they can enjoy a free meal, but in reality, they might not even recover the cost of admission.
4. The speculation in the crypto market is becoming a black hole, with bad coins driving out good ones.
The fact that Trump Coin, which relies purely on topic hype, is thriving indicates that the market has become so insane that it ignores technology, teams, and values; as long as it capitalizes on hot topics, it can harvest retail investors. Over time, projects that genuinely do work are overlooked, while speculative junk coins suck blood, completely draining ordinary investors' confidence. This operation may temporarily boost market activity, but in the long run, it will only accelerate regulatory tightening and capital flight.
Lin listens to the truth: it's fine to watch the spectacle, but don't end up being the lamb.
This is a typical “crypto reality show” — celebrities feast, project parties sip soup, and retail investors foot the bill. Short-term volatility looks exciting, but behind it all are tricks. Experienced investors should watch with a cold eye, and if new investors truly believe “dining with Trump can lead to wealth,” they should first recognize whether they are lambs to the slaughter.
Remember: all coins that make your adrenaline rush will ultimately stop your heart.
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