A "harvesting" game: How the crypto market has become a cash machine for the powerful

The crypto market has recently staged a “spectacle.” When a certain political figure launched their own cryptocurrency, they attracted over $500 million in just a few hours, only for the price to plummet over 90%, leaving millions of retail investors with nothing. Meanwhile, the masterminds behind it all were tracked through blockchain and found to have profited over $350 million—yet no one is willing to take responsibility.

The “Ultimate Truth” in the Crypto World: When Laws Become Decorations

This is not an isolated incident. Over the past year, figures ranging from the Argentine president to Hollywood celebrities have jumped into the “gold rush” of the crypto market. Investigations by blockchain analysis firms show that behind these high-profile crypto projects, almost all follow the same “script”:

Meticulously Designed Manipulation Process

• Using celebrity effects to inflate prices
• Insiders selling off in large quantities for profit
• Retail investors buying in, then prices collapsing
• Founders claiming “ignorance” or “being duped”

This pattern is known in financial markets as “pump and dump”—illegal insider trading in the stock market. But in the crypto world, U.S. regulators have stated they “will not intervene for now,” only warning that “fraud laws may still apply.”

In plain terms: Manipulating prices in the crypto market is basically legal.

The True Faces of the Puppeteers

Investigations reveal that the real directors of this “spectacle” are a few key individuals:

The first is the head of a certain crypto platform, pseudonym “Miao,” whose real name is from a Southeast Asian country. This entrepreneur, about 40 years old, runs a crypto trading platform that earned over $134 million last year, with 90% of that from trading fees. In an interview, he likened all financial assets to cryptocurrencies—“even the dollar,” because its value is based on “collective belief.”

The second is a 29-year-old crypto advisor from Argentina, known as a “ghost.” His father was imprisoned for check forgery, and he himself earned over $150 million through crypto projects. When the Argentine president supported a certain crypto in February and its value plummeted, he admitted in a video to being involved, even shockingly claiming he was just “holding funds in escrow”—which have yet to be returned.

The third is the CEO of a well-known platform, responsible for issuing and trading cryptocurrencies. Investigations show he has close ties with the two individuals above.

Retailers' “Joyful Casino,” the Rich's “ATM”

The most ironic part is that the crypto market itself operates like this:

The founder of a famous crypto issuance platform, a 22-year-old entrepreneur, openly stated—although this violates the efficient market hypothesis, “it really makes money.” Last year, his platform helped launch over 1,400 crypto projects, earning $1 billion just in trading fees.

He even proudly said the platform aims to give “everyone a fair chance to participate.” But industry insiders generally believe that “fairness” is just a facade; the reality is:

• Creators can operate anonymously
• Insiders get information early
• Retail investors are always the last to buy in
• After prices crash, manipulators have already cashed out

Crypto traders, in interviews, candidly said—“This is a manipulated casino, all pump and dump.” One even admitted involvement, claiming “it's defensive, to prevent others from deceiving retail investors.” But then he also advised investors to “stay away from the crypto market to avoid being scammed.”

The “Barbaric Growth” of Finance in the Absence of Regulation

The root problem is—no one cares about the law.

Blockchain investigation data shows that someone sold over $100 million in profit within seconds after a certain prominent figure's crypto issuance; another address bought in before the project was public and made $2.4 million. These transactions fully meet the definition of “insider trading” in stock markets, but in the crypto circle, apart from a few lawyers, almost no one is held accountable.

A law firm has filed lawsuits against multiple platforms, calling them “casino manipulated by insiders,” but the cases are still under review, and no top figures are involved. The defendants deny all charges, claiming “they never promised the price would rise.”

The Absurd “Dinner Politics” That Seems Unreal

Most ironic is that a crypto investor who made over $15 million was invited to a “special dinner.” Hundreds of crypto elites attended, and a White House spokesperson claimed it was a “private event” for the president, similar to an “after-hours gathering”—as if this could eliminate conflicts of interest.

At the dinner, a businessman dressed appropriately gave a speech in front of the U.S. flag, showing magazine covers to the crypto elites present, talking about the “bright future of crypto.” But reportedly, no one had a one-on-one conversation with the president.

Meanwhile, hundreds of protesters gathered outside in the rain.

The Decline of the “Frenzy” and the Eternal Truth

Now, the crypto boom has faded. Some well-known figures' crypto projects have already fallen 92-99%. Once highly promoted, they are now considered “pariahs” in the industry.

But the essence of this market has never changed—that is, the rapid transfer of wealth.

An industry observer calls this the “ultimate value extraction mechanism.” In the regulatory vacuum of crypto, those who hold the power of speech can manipulate prices at will, while ordinary investors can only become “chives” (retail investors who get squeezed).

When rule-makers themselves are beneficiaries, change seems forever out of reach. The crypto market still shines brightly, but behind that glow, countless retail investors' hard-earned money is evaporating.

Final note: The crypto market is staging a “great transfer”—a massive shift of wealth from ordinary investors to elites. Under the current lack of effective regulation, retail participants need to understand one fact: in this “game,” you are never the winner.