- Justin Sun allegedly manipulated TRX, profiting while ordinary investors lost money in crypto’s wild market swings.
- Memecoins like $TRUMP let celebrities and politicians turn hype into direct personal gains from public investments.
- Crypto culture now prioritizes fame and perception over real innovation, changing how money and influence flow.
The world is witnessing a new form of financial influence as cryptocurrency intersects with political power. Justin Sun, founder of TRX, allegedly manipulated crypto markets by using employee identities to inflate token prices on Binance.
Consequently, the retail investors lost heavily while Sun made huge profits. Such practices, along with the recent crypto investments by the Trump family, call for critical concerns regarding the relationship between crypto, politics, and finance.
In addition, cryptocurrencies are merely speculative digital currencies. Unlike other currencies, they are not backed by physical products or government power. Bitcoin, the original cryptocurrency, is based on a digital ledger that is recorded through a process called mining.
It is a decentralized currency. However, the currency is very volatile and is mostly used for speculative purposes. Other cryptocurrencies are far less stable and will fail if they are not able to generate interest online.
Memecoins and Political Cash Flow
Memecoins represent the purest form of cryptocurrency speculation. They derive value solely from celebrity or public hype rather than intrinsic utility. Donald Trump’s entry into memecoins illustrates a novel use: monetizing fame and political influence directly.
According to blockchain analytics, investors spent an estimated $148 million on the $TRUMP coin, with the top 25 holders accounting for $111 million. The Trump family controls 80% of remaining supply, earning $320.19 million in fees, demonstrating a direct pipeline from public investment to personal gain.
Additionally, crypto investments have replaced traditional influence channels. Historically, investors contributed to campaigns, expecting policy favors indirectly. Today, they can transfer wealth directly to Trump’s ventures while attending high-profile events. Justin Sun reportedly participated in this ecosystem, contributing millions to Trump-affiliated cryptocurrency projects shortly after U.S. elections.
Innovation or Corruption?
Silicon Valley’s innovative skills, once focused on software and productive startups, now fuel crypto trading and speculative ventures. Such a phenomenon directs the focus of innovation towards a market based on hype rather than reality.
Moreover, the crypto community thrives on perception rather than reality, allowing politicians to benefit from the public’s investments openly. Therefore, the convergence of memecoins, celebrities, and politicians may herald a new order in the way financial and political systems are structured.
