This time, he is not just shouting slogans on social media but has directly pulled out his 'digital wallet'—announcing the issuance of a digital currency called 'utility token,' which is said to be used to pay for services on his financial platform, Truth.

But anyone with clear eyes can see: this is not about promoting cryptocurrency; it's clearly a family affair to 'squeeze the retail investors'!

1. How wild is Trump's 'token issuance scheme'?

  1. First raise money, then make promises
    The coin Trump issued this time is called $TRUMP, and 80% of the tokens are held by him and his family company. What does that mean? It's like going to the supermarket and finding that 80% of the products on the shelves are 'shopping vouchers' printed by the owner, who claims these vouchers can be used as money.

    Even more outrageous, these tokens have a three-year lock-up period, which on the surface looks like 'long-termism,' but in reality, it's just painting a big picture of 'future surges' for retail investors. When they rush in to take the bait, he slowly cashes out.

  2. Using political identity as a 'retail investor harvesting machine'
    Last year, shortly after Trump took office, he and his family created a 'token issuance team': he issued tokens, his wife MELANIA issued tokens, his son issued tokens, and even the campaign slogan was turned into a token. These tokens are essentially air coins with no practical use, but thanks to Trump's celebrity effect, their prices skyrocketed hundreds of times within just a few days.

    For example, when TRUMP was first launched, it was $0.18 per coin, shooting up to $75 within 24 hours, with a market cap nearing $80 billion at one point. This kind of operation is reminiscent of Jia Yueting's 'I'll be back next week' scheme.

  3. Financial tactics more ruthless than a casino
    The Trump family also launched a project called World Liberty Financial, claiming to create 'decentralized finance,' but it turned out to be just a facade. Their stablecoin USD1 was said to be pegged to the dollar 1:1, but the actual reserves have never been disclosed.

    Even more exaggerated, they offered 'ranking rewards for holdings'; for instance, the top 220 people buying $TRUMP could dine with Trump, and the top 25 could tour the White House. This isn’t financial innovation; it’s openly pricing political privilege, using power to endorse token speculation.

2. Why do we say he is 'draining the pool'?

  1. Tokens are just 'digital IOUs'
    Trump claims $TRUMP can pay for the services of the Truth financial platform, but the Truth platform itself hasn't even appeared yet! His social media company, Truth Social, has seen its user base plummet by 95%, with its market value dropping from $730 million to $100 million. What value could tokens from such a platform have?

    In short, it’s about using 'future services' as bait, enticing retail investors to spend money on his tokens, which he then uses to fund other projects, leaving retail investors with a pile of useless digital symbols to mourn over in the bathroom.

  2. The 'three tricks' of price control to harvest retail investors

    High-level cashing out: Trump's team holds 80% of $TRUMP, and when the price goes up, they can directly sell on the exchange, or exchange for dollars through private placements, pledges, and other means.

    Transaction fee extraction: Each $TRUMP transaction incurs a fee, which is akin to taking a cut in a casino; regardless of whether the coin price rises or falls, Trump can profit effortlessly.

    Policy backing: After taking office, Trump disbanded the Justice Department's cryptocurrency investigation team, appointing cryptocurrency supporters as Treasury Secretary and SEC Chairman, clearing regulatory obstacles for his token issuance. This kind of operation, where 'the left hand legislates while the right hand profits,' treats the American financial system as his personal ATM.

  3. Family wealth surged by $1 billion
    In just a few months, the Trump family has made nearly $1 billion in paper profits through token issuance, NFTs, mining, and other projects.

    For instance, his son’s World Liberty Financial project raised $550 million in two rounds of token sales, with 75% of the profits going to Trump-related companies.

    Where does this money come from? It's all squeezed out of the 'retail investors' using real cash.

3. How can ordinary people avoid the pitfalls?

  1. Don't believe in the 'celebrity effect'
    Trump once called cryptocurrency a 'scam,' but now he is making a fortune by issuing tokens. Remember: true cryptocurrency is supported by technology and applications, not by celebrities endorsing it.

  2. Beware of the 'utility token' trap
    Many air coins claim to be 'usable for purchases,' but in reality, they have no practical application. For example, $TRUMP claims it can pay for Truth service fees, but the Truth platform doesn't even exist.

  3. Stay away from the distorted products of 'politics + finance'
    Trump has tied political power to financial speculation, using privileges like dinners and White House tours to stimulate token speculation. This approach is essentially rent-seeking, with risks higher than those in a casino.

Conclusion

Trump's 'token issuance game' is essentially a meticulously planned 'digital robbery.' He packages the tokens with political allure, controls the price through family businesses, and uses policy privileges for protection, ultimately funneling the hard-earned money of retail investors into his own pockets.

For such an 'ugly' operation, the best response strategy for ordinary investors is—don't participate, don't follow the trend, don't take over. After all, in the world of cryptocurrency, there are always more scythes than chives.