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Interaction between Politics and the Crypto Assets Market: A Study of the Trump Meme Coin Incident
Recently, the journal Economics Letters published a research article titled "From Zero to Hero: The Spillover Effects of Meme Coins in the Crypto Assets Market." The study focuses on the event of Trump issuing Meme Coins, revealing the heterogeneous volatility spillover effects driven by market sentiment and fundamentals, and explores how political signals amplify speculative dynamics. The findings highlight the increasingly important role of political factors in shaping the Crypto Assets market and investor behavior.
Introduction
The impact of political dynamics on financial markets is becoming increasingly significant, and the crypto assets market has become an important area where politics and finance intersect. The 2024 U.S. presidential election further highlights this relationship, with Republican candidate Donald Trump shifting to support digital assets, promising to make the U.S. the "global capital of cryptocurrency."

At the tokenization roundtable, regulators emphasized that the crypto market needs to keep pace with the times, that regulatory reforms should adapt to on-chain securities, and that the rules for the issuance, custody, and trading of crypto assets should be clarified to protect investors and promote innovation, ensuring that the United States maintains its leadership position in the global crypto market.

The stock price of Labubu toys surged to 350 billion HKD, but the related Meme coin LABUBU plummeted significantly, with its market capitalization falling to 28 million USD and a decline of over 20% in 24 hours. Despite Labubu toys being popular in several countries, it still failed to save the Meme coin from its big dump fate, highlighting its speculative nature and lack of practical value.

Fartcoin is a Crypto Asset launched in 2024, originating from AI conversations. Despite its absurd name and lack of practical use, it experienced a pump of 14.84% in Q1 of 2025. It has attracted investor follow, becoming a reflection of market speculation and sparking discussions about absurd phenomena in financial markets. Additionally, it has given rise to related projects like FartStrategy.

Crypto Market Watch: Bitcoin and Ethereum Prices Pullback, CME Gap Draws Attention
Market Overview
Core inflation data in the United States has been below expectations for five consecutive months, but there is a divergence in market views regarding future trends. Some opinions suggest that the impact of tariffs has not yet fully manifested, and there may be greater price pressure in July and August; while another faction emphasizes that weak demand limits corporate pricing. There are also differing views within the Federal Reserve: some hint at possibly lowering the threshold for rate cuts, while others advocate for maintaining a tighter policy for a longer period. Currently, the Federal Reserve tends to adopt a wait-and-see approach.
In terms of regulation, the U.S. Congress has accelerated the legislative process by establishing "Crypto Currency Week," with the "GENIUS Act" becoming the core of the regulatory framework. This act includes stablecoins in the regulatory scope, requiring reserves to be in cash and short-term U.S. Treasury bonds. This initiative not only regulates the market but may also reshape the global payment system. Some large tech companies have begun to layout USD/HKD stablecoins, attempting to establish efficiency.

Yield stablecoins are rapidly rising in the crypto market, primarily supported by physical assets to provide stable returns. Usual, Anzen, and Resolv are emerging projects, each with unique mechanisms and underlying assets. Despite the increasing opportunities, investors still need to carefully assess the risks.

Circle's IPO has sparked controversy due to its preference for Financial Institutions in the allocation, neglecting long-term supporting encryption players. Although the market potential is enormous, critics argue that this move deviates from the spirit of encryption and may impact the long-term development of the industry.

The digital renminbi (DCEP) will be piloted in four cities: Shenzhen, Xiong'an, Chengdu, and Suzhou, with some government employees' salaries distributed through this system. This initiative has sparked public interest in its security and potential for financial innovation, and is expected to have a profound impact on China's payment system and the development of the digital economy.

The integration of RWA and DeFi has driven the rise of the physical asset tokenization market, addressing the geographic and efficiency limitations of TradFi. Through open DeFi mechanisms, investors can participate in high-value assets with a low threshold, optimizing liquidity and returns. This innovation not only enriches the DeFi ecosystem but also provides stable asset support for RWA, helping to restructure the financial system and encouraging more people to engage in asset management.

Recently, several major DeFi protocols have accelerated the value accumulation of token holders through buyback plans, revenue sharing, and incentive measures, shifting towards more sustainable tokenomics. For example, Aave has established a buyback plan and new governance measures, while DEx and Hyperliquid enhance token value through buybacks and dual deflationary mechanisms. Ethena plans to allow stakers to enjoy revenue sharing. This marks the innovation and maturity of DeFi protocols.

This week, the Web3 gaming market has been dynamic, with projects like Lumiterra and KGeN attracting new players and performing well, while Sunflower Land has a retention rate of 74.2%. At the same time, mergers and legal issues have arisen within the industry, reflecting the rapid development and adjustment of the ecosystem.

The development of Web3 faces a bottleneck of inadequate user experience, which affects its popularization. To address this issue, user experience abstraction has been proposed, simplifying user operations through interface optimization, technical abstraction, and comprehensive hiding of Blockchain complexity. Future development should be user-centered, achieving a "chainless" experience to ensure that the needs of different user groups are met.

Newcomers in the Web3 industry can gain learning opportunities by participating in Airdrops, establishing cognitive models and methodologies. Entry methods include understanding Airdrop mechanisms, developing project analysis and fund management skills, as well as building a toolkit. Actively participating in projects and interacting with the community are essential to effectively accumulate experience and achieve learning while earning.

Exploration of the Serial Execution Bottleneck and Parallel Optimization of EVM
As we all know, the EVM is the core execution engine and smart contract execution environment of Ethereum, making it one of the most critical components of Ethereum. In a public chain network composed of numerous nodes, virtual machine technology plays a vital role in ensuring that smart contracts yield consistent execution results across different nodes.
The EVM can execute smart contracts in a uniform manner across various operating systems and devices, and this cross-platform compatibility ensures that every node obtains consistent results after running the contract. This is similar to how the Java Virtual Machine (JVM) operates.
In general, smart contracts are first compiled into EVM bytecode and then stored on the blockchain. When the EVM executes the contract, it reads these bytecodes in sequence, with each instruction corresponding to a specific Gas cost. The EVM tracks the Gas consumption during the execution of each instruction, detailing the amount consumed.

A cryptocurrency project in Turkey called Smart Trade Coin is suspected of large-scale fraud, with 50,000 victims and losses exceeding $2 billion. 127 suspects have been arrested, and the case has prompted deep reflection on crypto regulation, calling for the establishment of a transparent regulatory framework to protect investors' interests.

Hyperliquid has achieved success in the derivatives trading platform through its innovative Vault mechanism and unique market strategy. Its diversified Vault design addresses liquidity issues, bypassing the public chain transition period and enhancing system composability. The market adopts a bottom-up strategy and a token Airdrop plan to gain user support and build a good reputation. In the future, the Vault mechanism may lead to more innovations, making Hyperliquid a market maker in the crypto market.

OpenStamp launches its first Launchpad, planning to support the cross-chain GameFi project BitDragon and attract users through multiple incentive measures. The platform also offers user rewards and comprehensive support for new projects, strengthening the SRC20 ecosystem development and showcasing the potential of the BTC Stamps protocol, aiming to surpass the BRC20 standard.

The article discusses the new challenges faced by decentralized Perptual Futures exchanges, particularly the impact on liquidity pools during large position trades. Through an example of a trader profiting from substantial leverage, it highlights the platform's deficiencies in liquidity and Risk Management. The article compares the mechanisms of three major decentralized exchanges and suggests measures that need to be taken in future developments, such as dropping the Enter a Position amount and implementing automatic reduce position mechanisms to enhance platform security and liquidity.