If you can't beat them, join them.
If you can't drain the swamp, become the swamp.
"Drain the Swamp" was Trump's core campaign promise, meaning to eliminate political corruption and special interest groups in Washington. However, on the issue of crypto, he seems to be personally digging a new, more covert, and potentially more dangerous "digital swamp".
Once, the protagonist of the crypto world was Satoshi Nakamoto; now, it's the American president who claims "nobody knows more than me". Trump once asserted that crypto is "extremely volatile, with no backing"; now he has transformed, calling the crypto community "exciting, filled with founding era spirit".
Behind this dramatic reversal lies not just a change in personal attitude, but a reflection that crypto - once a "dragon-slaying youth" carrying disruption and ideals - has gradually become "swampified", even mutating into a "philosopher's stone" for turning profits in the hands of certain power players.
We are at a paradoxical historical moment: a technology claiming to be "decentralized" and free from power control is now flirting with top-level political power, even deeply intertwined. This is not only a betrayal of its original intent but may lead to an existential crisis beyond the financial realm.
The latest cover story of The Economist suggests crypto has become the ultimate "swamp asset". In a sense, is this the victory of revolution?
Today, combining the article's content, let's discuss why the domineering president fell in love with crypto, and the reversal, power games, and crisis behind it.
I. Trump's "Crypto Feast": A Carefully Orchestrated "Gilding Game"
The climax came on the planned dinner on May 22, 2025. A few weeks earlier, Trump's personally launched meme coin - $TRUMP - was on the brink of zero, almost becoming a crypto joke.
However, the president's personal "blessing" was like a stimulant, instantly giving it a kind of "real value". The $TRUMP coin founding team launched a "pilgrimage" invitation: coin holders ranked in the top 220 could earn the "honor" of dining with Trump, with the top 25 large holders able to participate in a VIP reception and have "close contact" with the president.
The news drove the crypto world crazy, with a buying frenzy. The final "lucky list" formed a bizarre panorama of humanity: from wealthy crypto big shots to fanatical MAGA supporters, to pure speculators.
One planned to fly from Asia to the US, hoping to attract investment for his blockchain project "promoting next-generation meme culture"; another Trump supporter from New York had previously spent crypto to buy Trump-branded watches; there was even a masked "network detective" tracking stolen digital assets.
Blockchain data coldly revealed that foreign figures were not uncommon in the VIP seats.
This seemingly star-studded feast was undoubtedly controversial. US government oversight organizations condemned it, pointing out potential violations of federal regulations prohibiting officials from accepting gifts. More seriously, if foreign government-connected individuals were present, the dinner might violate the Constitution's solemn Emoluments Clause, which strictly forbids federal officials from accepting gifts from foreign governments.
A former Obama White House ethics advisor bluntly called it a "moral nightmare".
Just four months into his re-election, Trump's family was expanding private business interests at an unprecedented speed and breadth. The meme coin dinner was just the tip of the iceberg. Their crypto layout goes far beyond this: a Bitcoin mining company and a project called "World Liberty Financial" launched by his son clearly bear the Trump family's mark.
Critics sharply pointed out that against the backdrop of Trump's significant crypto regulation relaxation, these actions constitute serious conflicts of interest. The White House spokesperson dismissively responded that the "king of knowing" always prioritizes American people's interests, and the meme coin dinner is a "private business activity" unrelated to the official White House. Only naive Americans would believe that.
This is not just a dinner, but a carefully orchestrated "gilding game". The $TRUMP coin's transaction fees and allegedly still-held tokens worth around $10 billion by insiders reveal the true winners of this game.
Chainalysis data shows that while 58 investors profited over $10 million from this coin, about 764,000 wallets suffered losses, most likely those ordinary investors attracted by the "overnight wealth" myth. While the privileged divide interests over drinks, countless ordinary investors' dreams might turn to foam.
II. The "Swampification" of Crypto: From "Dragon-Slaying Youth" to "The Dragon Itself"
(I) Broken Utopia: The Fading of Ideals and Deviation from Original Intent
Looking back at crypto's origins, we once heard many exciting declarations. When Bitcoin emerged in 2009, a utopian movement sparkling with anti-authoritarianism arose. Early crypto believers carried noble, even great goals: they yearned to completely overturn the existing financial system, protecting personal property from inflation and unjust seizure.
They dreamed of wresting power from large financial institutions and placing it in the hands of every ordinary investor.
In their eyes, crypto was not just an asset, but a liberating technology, a tool that could bring a fairer, more transparent world.
Crypto evangelist Andreas Antonopoulos passionately proclaimed: "Bitcoin is disruption. Its impact is something most people can't yet imagine... complete disruption. A completely decentralized currency, without borders... Bitcoin is born for the six billion people without bank accounts."
The crypto world then was filled with a "tech nerd" style of idealism. It tried to play multiple roles: a value storage tool, a high-return investment, a financial technology allowing point-to-point transfers without government and bank control channels.
It promised a degree of anonymity and privacy protection, so people wouldn't feel "Uncle Sam" watching from behind. It fundamentally provided an option outside the traditional system because early supporters were extremely distrustful of the existing financial system.
However, over a decade, reality has gradually diverged from the original ideals. It's obvious that crypto's ideals have been continuously "shrinking".
(II) The Reality of Mixed Sediments: The Birth of a "Swamp Asset"
Today's crypto more often presents a different landscape. It has become a highly speculative tool where people buy and hold, hoping for price increases; or short, hoping for price drops; or invest in crypto companies, hoping to outperform the market.
It has also been widely criticized for playing a fundamental role in black market transactions, extensively used in illegal activities such as human trafficking, drug trade, and terrorism financing. Many crypto activities choose to operate outside U.S. jurisdictions precisely because related enterprises are unwilling or unable to comply with U.S. securities and banking regulations.
"Swamp assets" - a concept proposed by The Economist - precisely summarizes the current awkward situation of crypto. An industry that once dreamed of being "far from politics" has now become synonymous with "using power for personal gain", developing a relationship with U.S. government administrative departments far dirtier than Wall Street or any other industry. This is undoubtedly a massive irony.
Crypto industry giants are investing billions of dollars in political lobbying to protect legislators friendly to them and ruthlessly attack opponents attempting to regulate them. The president's sons are selling their crypto projects worldwide, while the president himself exchanges interests with major investors through crypto dinners.
The crypto assets held by the first family are now worth billions of dollars, which might even become their largest single source of wealth.
This "swamp-like" trend stands in sharp contrast to other major economic regions worldwide.
In recent years, regions like the EU, Japan, Singapore, Switzerland, and the UAE have successfully provided new regulatory clarity for digital assets without experiencing similar rampant conflicts of interest. In developing countries where government seizures are common, inflation is high, and currency devaluation risks are real, crypto still plays a role somewhat close to what early idealists hoped.
Ironically, all this occurs against the backdrop of increasingly mature underlying technology for digital assets. While speculation remains prevalent, mainstream financial companies and tech giants are beginning to take crypto more seriously. The tokenization of real-world assets is accelerating, with traditional financial institutions like BlackRock and Franklin Templeton becoming major issuers of tokenized money market funds. Payment sector applications also show immense potential, with companies like Mastercard and Stripe embracing stablecoins.
However, in the United States, which should be leading innovation, the crypto industry seems to have chosen a shortcut of dancing with power. They argue that during the Biden administration, due to SEC Chairman Gary Gensler's tough stance and frequent enforcement actions, they had no choice but to "fight by any means". Banks are afraid of regulatory pressure and dare not provide services to crypto companies or easily enter this field.
There is some reasoning to this argument, as clarifying crypto's legal status through courts rather than Congress is indeed inefficient and unfair. However, with Trump's potential return, the regulatory pendulum seems to be swinging violently to the other extreme, with most cases against crypto companies being dismissed. Is this a victory for the industry or laying the groundwork for a larger crisis?
III. Why Trump Loves Crypto: Sugar-Coated Missile or Pandora's Box?
Trump's 180-degree turn on crypto attitudes is one of the most eye-catching phenomena in recent U.S. politics. From previously stating "I don't like Bitcoin and other cryptos, they're not currency, extremely volatile, with no substantial basis" to now declaring he wants to make the U.S. the "global crypto capital" and an "undisputed Bitcoin superpower", what lies behind this - a carefully considered policy shift or a meticulously calculated political and commercial marriage?
A Replay of the 2008 Crisis: Once these risks erupt, their impact will far exceed "crypto traders" and will affect all ordinary Americans with mortgages, retirement accounts, or hopes of starting a business through loans. Because the entire financial system is built on "trust", when opaque risks are quietly planted and regulation is deliberately weakened, the collapse of trust is only a matter of time. Even more terrifying is that the "firewalls" like the Dodd-Frank Act, which were introduced to address the previous crisis, are now being gradually dismantled by the Trump administration.
2. Risks for Ordinary Investors: Out of the Fire and into the Swamp
Rampant Fraud, Total Loss: The crypto domain is filled with various scams and Ponzi schemes. Many companies suddenly emerge, using grandiose promises to specifically target those who are less knowledgeable about finance and technology. Once scammed, due to the anonymity and difficulty of tracing cryptocurrencies, losses are almost irretrievable.
Compared to the multi-layered risk warnings and anti-fraud mechanisms in traditional banking systems, the crypto world is like a "dark forest". The elderly, veterans, startup owners, and even those seeking companions on social apps can become victims of fraud, with losses amounting to hundreds of billions of dollars.
The Illusion of "Democratization" and Retail Investors' Tragedy: Events like the $TRUMP dinner may seem to provide ordinary people with an opportunity to access top-level power, but behind this are often the sudden wealth of a few insiders and massive losses for retail investors. This is especially true for meme coins, whose volatile nature causes most latecomers to become "bag holders".
3. National-Level Corruption and Crisis:
Trump once made "Drain the Swamp" a core campaign promise, intending to eliminate political corruption and special interest groups in Washington. However, on the crypto issue, he seems to be digging a new, more hidden, and potentially more dangerous "digital swamp".
This "unicorn" that once carried liberal ideals is transforming into a "swamp beast" lurking at the center of power.
Unprecedented Conflict of Interest: The president and his family directly obtaining massive economic benefits from an industry they are actively pushing to deregulate - this blatant conflict of interest is extremely rare in modern American political history. This is no longer just about "opening a Trump hotel next to the White House", but a "large-scale corruption version" of privatizing state assets, even reminiscent of "banana republic" governance dysfunction.
Institutionalization of "Bribery Channels": The $TRUMP dinner and equity negotiations with certain crypto giants with criminal records essentially price political influence, providing special interest groups a channel to "buy off" the power center. This seriously erodes the integrity of politics and the fairness of decision-making.
Breeding Ground for Terror Financing and Cyber Theft: Due to its anonymity and cross-border mobility, the crypto system has become an ideal tool for national-level hacker groups (like North Korea's "Lazarus Group") and terrorist organizations to steal funds and finance terror.
Conclusion: Reflection on the "Me, Me, Meme" Era
"Me, Me, Meme" - this pun precisely captures the selfish nature of the current intersection of crypto and political power.
A technology once claimed to empower the masses now seems more dedicated to serving a few elites. Crypto has gained an unprecedented role at the policy-making table, but its reputation and fate are now closely tied to the rise and fall of its political patrons.
Trump's "favoritism" towards crypto may bring enormous economic benefits to him and his family in the short term and secure a lenient regulatory environment for the crypto industry. But as The Economist warns, the benefits of this deal may only flow in one direction. When the political wind changes or when risks accumulate to a critical point and finally erupt, the previous "honeymoon" might instantly turn into a "nightmare".
The crypto technology itself is not inherently sinful and still shows positive innovation potential in areas like payments and asset tokenization. But when this potential is hijacked by political speculation and unbridled pursuit of interests, when "innovation" becomes a facade for "rent-seeking", the consequences could be catastrophic.
What people need is genuine financial innovation that benefits the masses and promotes social progress, not a "swamp carnival" ultimately paid for by ordinary people.
