As a professional translator, I will provide a precise and coherent translation of this news article while maintaining the original layout and paragraph format. I will retain proper nouns and include all . Please note that the views expressed in this article do not represent the stance of “WEB3+”.
As I approach my senior years, I had planned to take a week off from writing and prepare in advance for the environmental recycling content of this week’s newsletter. I also planned to attend the movie “Attack on Titan” in my own unique way. However, unexpectedly, Trump recently released TRUMP Coin, causing a stir in the cryptocurrency market. As a result, I had to change my plans and write late into the night.
Please do not misunderstand my excitement about this event, and do not assume that I will suggest the best time to buy or sell. On the contrary, my strongest feeling towards TRUMP Coin is helplessness, and the words I want to say are speechless. Rather than keeping my thoughts to myself, I feel a responsibility to express my opinion on this matter.
During a book sharing event for my new book “Buy 100 RMB worth of Bitcoin Every Day: A Four-Year Record of Dollar-Cost Averaging,” a reader raised a question during the Q&A session. They wondered why blockchain and cryptocurrencies, which were originally intended to be decentralized, seem to only benefit the rich and consolidate the existing order. If I had known that on the same day, on the other side of the world, TRUMP Coin was being launched, printing 7 billion US dollars out of thin air through an extremely centralized method, perhaps my response at the time would not have been so spirited and righteous in defending blockchain.
Does cryptocurrency strengthen the existing order?
When responding to the reader, I clarified that reducing wealth inequality and decentralization are two different matters. It is true that if the tokens of a certain blockchain are overly concentrated, such as if one person controls one-third of them, it would threaten the decentralized nature of the distributed ledger. However, if the Gini coefficient is only slightly higher than normal, wealth inequality does not pose a security vulnerability, such as the risk of data manipulation.
Secondly, I also do not believe that those who have become wealthy through blockchain and cryptocurrencies are simply beneficiaries of the existing social order. On the contrary, many billionaires still do not understand or accept Bitcoin, with Warren Buffett being the most well-known example. In Hong Kong, we also once discussed the skepticism towards Bitcoin, believing that it was deceptive and could be banned at any time, as voiced by the former financial secretary John Tsang. On the other hand, founders of Ethereum like Vitalik, Binance’s CZ, and Tron’s Justin Sun, among countless others, were all unknown in the old economy, clearly reflecting that the wealth generated by blockchain and cryptocurrencies did not necessarily end up in the hands of the rich (this discussion purely pertains to wealth and does not represent recognition of individual industry figures).
I do agree that the majority of people in disadvantaged positions have not seen their lives improve because of blockchain and cryptocurrencies. However, even though blockchain provides an opportunity to reshape production relations, narrowing the wealth gap has never been its mission. Traditional economies are filled with various barriers such as capital and relationships. Even if there is a piece of extremely cheap land in front of you, you may not be able to afford to buy it for one billion. Even if you know that there are billions in the national security budget, you may never have the chance to earn that money.
On the other hand, cryptocurrencies do not discriminate against those with insufficient funds or humble backgrounds. Participants do not need approval, and if there are any barriers, they are only in terms of knowledge, which is fair to everyone, whether they are privileged or from a lower social class. The opportunity to escape poverty must be seized by oneself, and as long as one is willing to learn, even a disadvantaged person can change their life trajectory through cryptocurrencies. I am well aware of this because I am one of those disadvantaged individuals. This is why I have always insisted on making comprehensive educational content open to all—I absolutely do not want anyone to miss out on the opportunity to gain information and knowledge because they lost at the starting line.
This applies not only to individuals but also to countries. Bhutan, as the only carbon-negative country in the world, cannot receive the necessary funding in global power dynamics and does not receive support from major countries that heavily damage the environment. Instead of selling surplus electricity at a low price, Bhutan utilizes hydroelectric green energy for mining, making it the fourth-largest holder of Bitcoin in the world, with over 12,000 bitcoins, valued at 1.2 billion US dollars, accounting for 36% of its GDP. Another well-known example is El Salvador, a small country that has made Bitcoin a legal tender alongside the US dollar. Although it is still too early to say whether it can free itself from the US dollar, the fact that Bitcoin alone provides an opportunity for economic transformation is unprecedented and of immeasurable significance.
Trump’s “Spiritual Jade”
There is a popular belief in the media that the previous bull market was driven by Tesla’s acceptance of Bitcoin for car purchases, while the current bull market is driven by Trump’s candidacy and eventual election. Such reports attribute the success to the actions or words of one or two individuals, completely disregarding the efforts of the cryptocurrency punk community over the past few decades and the entire industry. This is highly ignorant, and I cannot agree. It’s like in the comic book “Dragon Ball,” where Goku, Gohan, Vegeta, and other heroes have gone through countless trials and sacrifices, even giving up their lives to save the Earth. Then the media believes the words of Mr. Satan and portrays him as the savior of the Earth, single-handedly saving it. Both scenarios are equally ridiculous.
Celebrities are good at taking credit for the success and glory that follows their actions, while the media loves to simplify complex events into dramatic headlines. However, if you lack blind faith or simply do not care about the facts and only believe that making money is the only truth, then you cannot become mainstream with a single-minded discourse.
In the last bull and bear market cycle, whenever Elon Musk made a statement, Dogecoin would soar. Recently, this billionaire has intensified his efforts by entering the cabinet and establishing the Department of Government Efficiency, making himself the “founder” of DOGE. Even if we do not appreciate this approach, at most, it is taking advantage of the trend. However, Dogecoin remains relatively decentralized, with tokens scattered among a wide range of holders and miners. Musk cannot hold too many tokens and cannot influence the minting logic of DOGE.
On the other hand, TRUMP Coin, which was just released, is minted in the most centralized manner. According to the official website gettrumpmemes.com, TRUMP Coin has a total supply of 1 billion, with 80% held by the “team” and released over three years. Even of the remaining 20%, half is used for liquidity provision, and only 10% is publicly available for sale. The issuance, usage, and governance (if any) of TRUMP Coin are not decentralized but more centralized than central banks issuing fiat currencies. The only aspect that can be remotely related to decentralization is the use of the Solana blockchain for bookkeeping, and as long as holders use self-managed wallets, authorities cannot freeze their assets. I have previously written about the “decentralization” of blockchain, discussing how Eastern superpowers can indirectly incorporate blockchain into state ownership. However, I never expected that a few years later, the president of a Western superpower would use such a blatant method to “decentralize” cryptocurrency.
You may argue that the right to mint coins is what I have always advocated for and even argued for as a constitutional protection of citizens’ rights. Isn’t Trump’s issuance of TRUMP Coin the best example of using blockchain and memecoins? Unfortunately, this is not the case.
The democratization of coin minting aims to provide citizens with diverse choices, allowing individuals to issue tokens to interpret value or functionality. It is an extension of freedom of speech, empowering the general public and countering systemic authoritarianism. However, just as police officers who possess firearms legally must be subject to stricter supervision compared to ordinary citizens, politicians who wield public power and have access to asymmetrical information should be subject to corresponding constraints to prevent abuse of power. In Hong Kong, where democracy is lacking and officials are not held accountable, the former financial secretary John Tsang had to step down for buying cars before the tax increase. On the other hand, in the democratic United States, the term “conflict of interest” has completely disappeared. While the lawsuit over whether cryptocurrencies are securities is still ongoing and the legality of issuing coins, especially by officials, remains uncertain, the president, on the eve of his inauguration, issued coins in an extremely centralized manner. Such an interpretation of the democratization of coin minting and the enthusiastic participation of the public leave me feeling helpless.
The issuance of TRUMP Coin is like Mr. Satan raising both hands and asking all the people of the world to give him their spiritual energy to help him “FIGHT FIGHT FIGHT” and save the planet. If you believe that Mr. Satan will use your spiritual energy to save the Earth and willingly support him with money, I respect your political stance and dedication. Even if you only seek to buy low and sell high, I also respect your freedom of choice, as speculation for making money is not wrong.
However, if you believe that TRUMP Coin is related to the spirit of the cryptocurrency punk movement, it is undoubtedly a beautiful misunderstanding. The fact is that the true heroes behind Mr. Satan, such as Tornado Cash, which uses cryptography to protect asset privacy, have either been imprisoned or are awaiting trial. There are also many web3 entrepreneurs working tirelessly to build for the public interest beyond national sovereignty, with little time to bask in glory because everyone understands that we are still far away from widespread adoption of cryptocurrencies and the world where they help safeguard citizens’ rights is still a long, endless road.
p.s. Someone in a chat mentioned that they missed out on TRUMP Coin, but I don’t think it’s a big deal. They thought I was being self-righteous, but the truth is I don’t mind making money, and I even like it. However, I know that I also missed out on the lottery, horse racing, and football matches during the same period. If I lamented every missed gambling opportunity, I would make myself too busy. Why not spend the free time watching a good movie instead? Apart from “Attack on Titan: The Last Attack” and “Fullmetal Alchemist: Brotherhood 15th Anniversary Special Edition,” which are both currently in theaters, there are also many Japanese romance movies worth watching. Just randomly pick one, and every frame is as beautiful as an Instagram photo, such as “My Sunshine” (lit. “The Sun That Sneaked into My Heart”). In addition, there are many great Hong Kong films worth supporting recently, especially “Four Trails” which I highly recommend.
This article is a collaborative reprint from “TRUMP Coin shakes the market: make crypto centralized again.”
Please note that the views expressed in this article do not represent the stance of “WEB3+”.