HashKey Jeffrey: Viewing Personal Worship in Cryptocurrencies through the "Trump Trade"
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HashKey Jeffrey: Viewing Personal Worship in Cryptocurrencies through the "Trump Trade"
This article will explore the impact of celebrity influence on the cryptocurrency industry during this cycle, from aspects such as the formation mechanism of celebrity effects.
Navigating Web3 tides with focused insightsAuthor: Jeffrey Ding, Chief Analyst at HashKey Group
Cryptocurrencies have always been associated with celebrities. First came Bitcoin under the so-called "Trump trade," then Elon Musk founded the Department of Government Efficiency (DOGE), sending Dogecoin soaring. Emerging markets fund manager Mark Mobius once tried to dampen public enthusiasm for crypto by stating, "Cryptocurrency is a religion, not an investment."
While cryptocurrencies do exhibit certain cult-like characteristics around individuals, calling them a religion may actually overstate their significance. This article explores how celebrity influence has shaped the crypto industry in this cycle, focusing on the mechanisms behind such phenomena.
Religious Myth and Cult of Personality
According to Émile Durkheim’s *The Elementary Forms of Religious Life*, religion consists of unified beliefs and practices related to sacred things—things set apart and forbidden—which bind adherents into a moral community called a church. On one hand, we observe specific coins elevating celebrities to near-divine status, especially when founders exert immense influence over their respective projects. On the other hand, Bitcoin differs significantly; during its early days, the mysterious and symbolic absence of "Satoshi Nakamoto" elevated Bitcoin to the level of divine creation. Today, Donald Trump is emerging as a contender for the role of "Bitcoin Jesus," driving market momentum.
However, we argue that while personality cults exist within cryptocurrency—akin to religious myth—the phenomenon is better described as fervent devotion (cult) or belief rather than formal religion (religion). Cryptocurrencies lack clearly defined sacred taboos or rituals that reinforce communal identity.
This article outlines how cults of personality evolve into broader celebrity effects in crypto. Even if you view crypto as a religion, let us invoke scholar Russell McCutcheon: “What deserves study is not what religion is or isn’t, but the very process of ‘making it.’” For instance, how do crypto enthusiasts themselves construct and assert these cults of personality?
Mechanisms Behind Celebrity Influence
Charismatic Leadership
German sociologist Max Weber, in *Economy and Society*, defines charismatic leadership (or authority) as "obedience to the revealed will of a person regarded as possessing exceptional qualities—be they sacred, heroic, or otherwise extraordinary—and the patterns of conduct he reveals." This form of authority stems from a leader's extraordinary personal traits, insights, or achievements that inspire loyalty and obedience.
Take Elon Musk, whose followers admire not just his resume but also the inspirational vision crafted through ventures like electric vehicles and space exploration. Supporters believe backing Musk equates to supporting human progress. According to global consumer research platform Piplsay, 37% of U.S. adults make investment decisions based on Musk’s tweets.
Once attached to a charismatic leader, individuals reinforce their faith through self-validation processes.
Self-Verification
William B. Swann’s Self-Verification Theory posits that people seek feedback consistent with their self-concept to maintain a sense of predictability and control over their environment, thereby reinforcing existing beliefs.
In the highly volatile world of cryptocurrency trading, traders often assume, “I understand how to navigate market volatility.” Combined with allegiance to a charismatic figure, this becomes, “I can interpret the prophet’s words.” When prices rise as predicted by a celebrity, self-verification strengthens. Even institutions like the Federal Reserve resemble temples, where ambiguous statements from figures like Chair Jerome Powell are scrutinized like divine omens, allowing individuals to validate their expectations about future monetary policy.
Faith bordering on deification intensifies when met with external opposition, particularly in polarized environments. During the U.S. election, Kamala Harris (Democratic candidate) initially lacked clear pro-crypto policies and later expressed support less enthusiastically than Trump. This contrast amplified Trump’s celebrity effect, leading to euphoric market sentiment following his victory.
Once a cult of personality forms, how does psychological commitment translate into market behavior? The answer lies in bounded rationality.
Bounded Rationality
Bounded rationality, first introduced by Kenneth Arrow, describes behavior that is “intentionally rational, yet limited.” Human rationality is constrained by three factors: incomplete information due to environmental uncertainty; limited cognitive capacity to process complex data; and reliance on the first signal system—concrete stimuli like sound, light, taste—rather than abstract reasoning.
Faced with the vast complexity of the crypto ecosystem, people preferentially trust “deified” charismatic leaders to reduce decision-making costs. A celebrity’s actions become the most influential source of information, making herd behavior the optimal strategy for followers.
These deified figures exist in hierarchical layers, shaped by modern social media echo chambers. Figures like U.S. President Donald Trump and “Iron Man” Elon Musk influence billions globally—tokens linked to them surge at the slightest word or gesture. At a smaller scale, even influencers with just thousands of X (formerly Twitter) followers can promote obscure tokens within private “wealth groups,” prompting enthusiastic endorsements of these supposed “wealth codes.”
Everyone has their own “god.”
This tendency is especially evident in meme coins. Investors avoid complex analysis of investment logic or intrinsic value, instead immersing themselves in wealth fantasies and anxieties propagated by KOLs (key opinion leaders), repeating identical group behaviors within isolated information bubbles. Sometimes, the object of worship transcends any individual—it might be an animal, a pop culture symbol, or an internet-mythologized narrative.
At this point, the cult of personality is fully formed.
Value and Risks of Celebrity Influence
Short-Term Catalyst
Celebrity endorsement provides short-term benefits for cryptocurrencies.
A single mention can dramatically increase visibility—an invaluable asset in an age of information overload. Capturing public attention lays the foundation for strong secondary market performance.
Endorsements boost investor sentiment and attract new capital, triggering rapid price surges.
For example, Trump’s unprecedented pledge to make Bitcoin a U.S. strategic reserve asset sharply raised market expectations and fueled rallies. Dogecoin rose from obscurity to a multi-billion-dollar market cap largely thanks to Musk’s persistent advocacy. In the case of meme coins, successfully creating a “deity” figure can unleash explosive momentum.
Risks of Over-Dependence
On the flip side, tying a project too closely to a celebrity carries risks. While star power brings opportunities, it also introduces vulnerabilities. The same attention that accelerates growth can amplify crises. If a celebrity falls from grace, panic selling may follow. Even without scandal, long-term value cannot rely solely on fame. Sustainable value depends on the underlying ecosystem’s potential to attract continuous funding and engagement.
After short-term inflows, losing celebrity appeal can lead to severe value erosion. Just imagine what would happen to DOGE without Musk.
From Centralization to Multi-Center Governance
How can projects harness celebrity influence while maximizing benefits and minimizing risks?
We believe communities and projects should evolve from centralized, top-down models toward modular, multi-center structures. Early-stage development led by a dominant figure builds essential visibility and user base. Later stages are better suited for DAO (Decentralized Autonomous Organization) governance, which maintains effective leadership while reducing dependency risk, fostering sustainable ecosystem growth. Of course, such transitions involve growing pains—but projects that successfully navigate this shift represent truly investable assets.
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