[1. The capital giant 'betting' on Trump surfaces: a single month of purchasing 77,226 Ethereum]
On July 29, the blockchain analysis platform Lookonchain disclosed a set of explosive data: World Liberty Financial (WLFI), a DeFi company publicly supported by former U.S. President Donald Trump, spent another $1 million USDC to purchase 256.75 Ethereum. This marks the 15th public on-chain operation record for the company in the past 30 days, with the cumulative holding soaring to 77,226 ETH, approximating a total value of $296 million at current market prices.
More notably, WLFI's average holding cost is about $3,294 per coin. If calculated at the Ethereum price of $3,824 at the time of writing, the company's paper profit has exceeded $42 million — equivalent to earning $58,000 per hour.
In-depth analysis of on-chain data:
July 25: Single-day purchase of $30 million worth of ETH, setting the largest single transaction of the month
Active address activity: An average of 6 smart contract calls per day, involving cross-chain bridge and staking pool operations
Asset distribution: 94% of holdings are concentrated in cold wallets, using a multi-signature risk control mechanism
Industry insiders bluntly state: "The scale of institutional holdings is enough to rank among the top 20 global cryptocurrency funds." (Data source: CoinGecko institutional holdings leaderboard)
[2. The 'Trump Effect' behind Ethereum's 55% surge: A chemical reaction of policy dividends and market games]
During the intensive purchasing period by WLFI, the price of Ethereum traced a steep upward curve. From $3,385 at the end of June to $3,824 by the end of July, a 55% increase in just 30 days, with a total market cap increase of over $80 billion — equivalent to the entire stock market value of Morgan Stanley.
▍Three major momentum drivers for market explosion
Regulatory winds shift suddenly:
The U.S. Securities and Exchange Commission (SEC) was ruled on July 18 by a federal court for 'abusing its authority to investigate Coinbase', which was interpreted as a milestone event for easing cryptocurrency regulation.Expectations for technological upgrades:
Ethereum core developers confirmed that the EIP-4844 (Proto-Danksharding) upgrade will be implemented in Q4 2023, at which point gas fees may decrease by 90%.Institutional influx trend:
Apart from WLFI, asset management giants like BlackRock and Fidelity have also submitted applications for Ethereum spot ETFs in July, with net inflows from Wall Street institutions exceeding $4.7 billion this month.
▍The special layout of 'Trump-affiliated' capital
Interestingly, another important entity under Trump, the Trump Media & Technology Group (TMTG), acted simultaneously with WLFI. The group has reportedly spent $300 million on Bitcoin call options, forming a dual-line bet of 'Ethereum + Bitcoin'.
A partner at a hedge fund revealed to Bloomberg: "These trades generally adopt a delta-neutral strategy, holding both spot and buying volatility derivatives, which is clearly a long-term bullish signal."
[3. Suspicion of benefit transfer: When political influence meets the cryptocurrency market]
As the crypto asset holdings of 'Trump-affiliated' companies exceeded $900 million (according to Forbes estimates), a controversy around 'rent-seeking' is brewing.
▍Three major points of controversy
1. The 'revolving door' between policy-making and business interests
Trump publicly promised in June that 'if elected, he will pardon the founder of Silk Road', which was seen as a way to appease cryptocurrency voters.
The CEO of WLFI was reported to have donated $1.2 million to the political action committee of a legislator who supports cryptocurrency legislation.
2. Insider information concerns
On July 11, WLFI suddenly reduced its leverage position from 3 times to 1.5 times, and three days later, the SEC released signals of regulatory easing. In this regard, a professor from Columbia Law School pointed out: "This aligns with the characteristics of 'abnormal trading volatility' as stipulated in Article 6 of the Commodity Exchange Act." (See detailed CFTC Regulation Guidance 2022-4)
3. Suspicions of market manipulation
Blockchain data shows that of WLFI's 77,226 ETH, 63% was completed through OTC transactions. A professor from NYU Stern School of Business warned: "Such large off-exchange trades are opaque and may involve price anchoring behavior."
The White House responded:
In the face of doubts, spokesperson Seth Fields emphasized: "Mr. Trump has never and will never participate in any conflict of interest behavior." However, he refused to disclose whether the president was aware of the related investment decisions.
[4. The cryptocurrency market enters the 'deep water zone': How can ordinary investors break through?]
When political capital is deeply bound with the trillion-dollar cryptocurrency market, individual investors need to establish three major cognitions:
1. Beware of the 'narrative-driven investment' trap
Historical data shows that the average volatility of cryptocurrencies in U.S. election years is 37% higher than the benchmark (CoinMetrics 2020 report), and risks of flash crashes triggered by policy fluctuations must be guarded against.
2. Focus on on-chain data rather than celebrity endorsements
Use Nansen or Dune Analytics to monitor Smart Money movements
Focus on observing 'net flow from exchanges' and 'whale address activity' indicators
3. Strictly adhere to asset allocation red lines
The proportion of crypto asset allocation should be controlled at 5%-15% of total liquid assets, with a priority for trading platforms regulated by New York's DFS, such as Coinbase and Binance.
[5. Conclusion: A silent revolution reconstructing financial power]
From Trump to BlackRock, traditional centers of power are re-establishing their discourse through cryptocurrency. When a $296 million ETH holding meets a presidential campaign, this capital game has long surpassed mere price gambling, becoming a microcosm of power and wealth redistribution.
As an anonymous mining pool operator said: "Blockchain does not need a president, but the president needs blockchain." In this war without gunpowder, the only certainty is — code doesn't lie, but human greed and wisdom will forever leave a mark on the chain. #lagrange $LA