Institutions crackdown on the crypto world: An analysis of three major deadly traps and the essential guide for retail investors to avoid pitfalls

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London Stock Exchange’s blockchain settlement deployment sparks nationwide cheers of “Bull Run”; daily trading volume in the prediction market exceeds $700 million, Wall Street traders are scrambling with a $200,000 annual salary; Vietnam’s USDT payment success rate reaches 97%, stablecoin applications seem to be on the verge of explosion—A new wave of crypto enthusiasm arrives with temptation, and many retail investors are eager to jump in. Sister Qinglan often reminds everyone in Qinglan Crypto Classroom that the more lively the surface of the crypto world appears, the more cautious we should be of the scythe behind it. These three layered harvesting traps could wipe out your principal at every step.

Solemn reminder: The content of this article reflects Sister Qinglan’s personal observations and analysis and does not constitute any investment advice. The risks in the cryptocurrency market far surpass those in traditional finance; gains and losses are at your own risk, and irrational follow-the-leader behavior will only make you a market sacrifice. This is also one of the core bottom lines I emphasize repeatedly in Qinglan Crypto Classroom.

Trap One: London’s “Peaceful Takeover” of the Stock Exchange, Retail Investors Become Rule Enforcers

The news that the London Stock Exchange is launching a digital asset settlement platform has been interpreted by the market as a “milestone in the legalization of the crypto industry,” causing various “institutional concept coins” to surge, sparking retail chasing. But Sister Qinglan wants to pour cold water—this is not a traditional giant’s “peaceful takeover” of the crypto industry, but rather a cross-industry power grab driven by the lack of new competition. Essentially, it is traditional finance’s dimensionality reduction attack on the crypto sector, a pre-judged prediction in Qinglan Crypto Classroom’s deep analysis.

The core demand of traditional financial institutions is to break through existing assets—slowing business growth and shrinking profit margins have made the incremental space in the crypto market a must-contest battlefield. The London Stock Exchange’s blockchain settlement layout aims to convert bank deposits and traditional assets into on-chain tokens, allowing traditional funds to transfer directly on the chain. The ultimate goal is to bypass existing crypto exchanges and control the pricing and circulation rules of on-chain funds themselves.

From the perspective of deployment pace, the London Stock Exchange began technical preparations as early as September 2024. It has embedded blockchain technology into its core settlement system, gradually squeezing out retail investors, with a very calculated strategy. In the future, industry rules will be set by them, and retail investors can only serve as friction costs—how they harvest is up to them. This is also the key reason I warn everyone in Qinglan Crypto Classroom to beware of institutional hegemony.

Qinglan’s survival tip: Stick to long-term spot holdings, and resolutely avoid short-term speculation on “institutional concept coins.” Macro favorable conditions indicate long-term trends, not reasons for short-term trading. Wait until the market digests expectations and volume shrinks before considering adding positions. Remember, institutions are here to set rules, not to carry you on their shoulders—that’s one of the core logic in Qinglan Crypto Classroom to avoid pitfalls.

Trap Two: The “Professional Scythe Game” in Prediction Markets, Information Gaps Crushing Retailers Barefoot

The prediction market’s daily trading volume surpassing $700 million, and Wall Street scrambling for traders with a $200,000 annual salary—sounds tempting, right? Many retail investors see this as a new opportunity and want to get a piece of the pie. But Sister Qinglan warns—this is the most ruthless information gap scythe, specifically targeting retail investors. I have also dissected this high-conflict harvesting logic in Qinglan Crypto Classroom.

In the past, when the market was chaotic, retail investors could perhaps rely on luck to make some gains. Now, with professional Wall Street teams involved, the game rules have changed completely. You rely on subjective feelings and fragmented information, while they leverage quantitative models, millisecond-level information streams, and cross-platform arbitrage strategies to profit; you bet on single events, while they hedge traditional market risks with prediction market data, earning in both directions.

Even more brutal are insider trading and odds manipulation—institutions can access core information about policies and elections in advance to plan their moves, leaving retail investors only to passively take the losses. As institutional funds flood in, the odds of making money are quickly flattened, and the original profit loopholes are thoroughly closed. Retail investors are left with only naked bets on price movements, with no way to fight back.

Qinglan’s tip to avoid ghosts: Only use small amounts of idle funds to play around in such sectors; strictly avoid heavy positions! Treat it as entertainment funds, and don’t expect it to save your life. Better to treat market data as a reference to assist rational decision-making. This is also one of the rational investment principles advocated in Qinglan Crypto Classroom.

Trap Three: The “Superficial Carnival” of Vietnam Stablecoin Payments, Three Major Hardships Hard to Break Through

The news that “Vietnam USDT payment success rate is 97% in 30 days” has led many to believe that stablecoins are about to conquer the world. Sister Qinglan admits there is genuine demand, but don’t be fooled by appearances. The detailed analysis of the underlying tricks has been discussed in Qinglan Crypto Classroom. The three major hard obstacles make widespread adoption difficult.

Vietnam’s scenario is very special: USDT is not a mainstream payment tool but a safe-haven currency. Locals use it to hedge against exchange rate fluctuations and preserve value. Plus, Vietnam skipped the credit card era; mobile payments are widespread, and wallet protocols enable seamless USDT and Vietnamese dong conversions, creating a “second financial system” in parts. This phenomenon appeared as early as the second half of last year.

Behind the 97% success rate are three insurmountable issues: trust crisis (failed payments, unclear on-chain records), slow payments (20-30 seconds confirmation, poor experience), and limited scenarios (not supported by chain stores, minimum thresholds). Practicality is greatly reduced.

Qinglan’s reassurance: The real application of stablecoins indicates the industry is moving toward implementation, not just empty talk. Mainstream coins like BTC and ETH remain the cornerstone, and their long-term value logic remains unchanged. Don’t panic over short-term fluctuations; stick to phased accumulation and keep a steady mindset. This is also the long-term advice in Qinglan Crypto Classroom.

Key conclusion: Adhere to three principles to navigate the crypto fog

Qinglan clarifies: The London Stock Exchange is a “power grab ghost,” aiming to control pricing and rule-making; prediction markets are “soul-sucking ghosts,” harvesting through professional barriers; stablecoin payments are a “life protection talisman,” supported by real demand.

The core survival tips for retail investors are threefold: do not chase high institutional concept coins, avoid heavy positions in high-conflict sectors, and stick to mainstream coins for long-term holdings. Separate entertainment funds from investment funds, abandon luck-based thinking, and only then can you survive the institutional encirclement.

For more insights into the underlying logic of institutional harvesting, follow Qinglan Crypto Classroom, learn to see through the tricks, and avoid pitfalls. Opportunities and risks coexist in the crypto world—protect your wallet to survive until the real bull market!