The crypto market is not advisable only by Trump, we need to reconstruct independent narratives

Author: Anderson Sima, Executive Editor of Foresight News

The crypto market is caring for Trump again.

But I am not excited, not because I do not have the holdings of the three tokens such as SOL, XRP, and ADA, but because of the series of measures that President Trump has taken office that make me excited and also vaguely worried about the crypto industry.

Just before the Trump administration announced its move to promote strategic reserves of cryptocurrencies on March 2, another globally striking diplomatic event also deserves attention from the crypto industry.

On February 28, U.S. President Trump and Vice President Vance and Ukrainian President Zelensky, who visited the White House, broke out in front of the media. This unusual bickering in diplomatic practice reveals the current U.S. government is resentful of the unlimited responsibility for leading world peace, the key dispute is that Trump is unwilling to pay an undue price for other countries—that is, the United States first.

Yes, this is Trump's campaign slogan and governing philosophy. By understanding this, we can see what kind of political motives are behind Trump’s new policy on crypto-friendly friendship?

"US First" does not equal financial equality

Trump's core philosophy is "America First", and his policy goals have always focused on consolidating the United States' global hegemony and economic interests. In the cryptocurrency field, although he claimed to promote the United States to become the "global crypto capital", his policy essence is to implement trade protectionism with state power to ensure that the United States always maintains its world leadership.

So what about the nature of cryptocurrencies? There is actually no essential difference between cryptocurrencies and traditional financial markets in specific products and forms. Even cryptocurrencies are included in major commodity categories today, and ETF or futures trading can be conducted. But there are so many financial products around the world, what is the special thing about cryptocurrencies?

As a practitioner, my answer is that the emergence of cryptocurrencies is essentially a revolutionary financial equality movement. From the perspective of Marx's economics, since its inception, financial products, as a derivative system of capitalism, represent the interests of elites from beginning to end, and are a weapon for infinite capital expansion. However, they do not serve the proletariat, and they also prefer large capital and power machines.

But the emergence of Bitcoin is precisely because of its dissatisfaction and innovation with this system. The design of cryptocurrencies and the emergence of smart contracts can allow all investors to enter a brand new financial system without permission or threshold. This system was born as a global, license-free, and even open and transparent. If "America First", blockchain technology would not have been invented by an anonymous person.

If the United States really realizes its strategic reserves of Bitcoin, I am very excited about it. But four years later, will the new US president still stick to this policy? Can the market bear the huge selling pressure at that time? Will the Democratic Party re-emerge the "cryptocurrency prison"? The market is always timely and the forward is not considered by traders, but as a long-term practitioner, this issue is very important.

Trump opens Pandora's box

In addition to the motives of relevant policies, the TRUMP and MELANIA meme coins launched by the Trumps not only increased the speculative bubble in the crypto market, but also opened the Pandora's box of "celebrity issuing coins", triggering a chain reaction.

The president's personal issuance of coins was created by Trump, which also created a super hot spot in the market. After the TRUMP coin was launched, the market value soared to around US$80 billion, and then adjusted to US$10 billion, with those who chased the highs suffering heavy losses. Similar cases further spread after his wife MELANIA and the Argentine president followed the example of issuing coins, forming a vicious cycle of "celebrity-speculation-collapse", draining market liquidity and affecting the positive image of the industry and a healthy market environment.

Recently, American celebrity Kanye is also going to enter the ranks of issuing coins, and has been building momentum and previewing on social media early in the morning. Does the market need so many celebrity Memes? The evolution of a token's life cycle from years to hours has greatly increased the difficulty and risk even for specialized traders.

In the past, the SEC's strict regulation not only stifled industry innovation, but also protected investors' asset security issues. But now, under Trump's personal guidance, the rapid issuance process and extremely low regulatory costs have made the crypto industry a holy place for "cutting leeks"? So we joked that North Myanmar fraud groups have begun to switch to the cryptocurrency field. Trump's coin issuance "turns the industry into a tool for political manipulation" and weakens the outside world's serious understanding of blockchain technology.

The lessons from the past: From Musk to Trump

Trump is not the first celebrity to use his influence to stir up the crypto market. Tesla CEO Musk is the strongest caller in the last cycle. He once bought Bitcoin through Tesla to drive Bitcoin to soar, and then turned to Dogecoin to make Bitcoin plummet. In this cycle, Trump has become the new king of singles.

It is not difficult to find that as an extremely conceited elite, both Trump and Musk have unpredictable market attitudes, especially President Trump, who shows his true nature as a businessman. However, when cryptocurrencies are beneficial to their political influence, he did not hesitate to embrace cryptocurrencies, but he had strongly criticized cryptocurrencies a few years ago.

If the industry relies too much on the endorsement of centralized authorities such as Trump, we will deviate from the original intention of "code is law".

The crypto industry needs to reconstruct independent narratives

Trump's encryption policy seems to have opened the green light for the industry, but in fact it hides a trap. Its "America First" logic will instrumentalize encryption technology, the wave of celebrity coin issuing coins has spawned speculative bubbles, and the strong binding between policies and markets has caused the industry to fall into cyclical turmoil.

We must be clear that true financial equality cannot rely on the "gift" of political strongmen, but should return to the underlying value of technologically neutrality. Only by adhering to decentralized narrative, constantly conducting technological innovation, and finding opportunities to change the world like AI.