The synergy of political support and highly speculative assets such as meme coins will always surely be disastrous, and the recent pound scandal was a clear reflection of this concern.
Crypto has traveled a long way during the last decade. The main adoption, institutional interest and regulatory clarity helped the industry gain increasing credibility. And meme coins also forged an exciting niche in this sector, which reflected the creativity and participation of the community. However, political memes coins could ruin this progress of decades very quickly.
A promotional charge of the president of Argentina, Javier Milei, made Libra investors lose more than $ 250 million in just hours. Its support caused a purchasing frenzy that pushed the price of almost zero to almost $ 5 in a matter of minutes. Experts were quickly charged, throwing more than $ 107 million in chips before the collapse price. Argentina’s Fintech camera tagged this classic carpet shooter without biting words.
The anatomy of a meme currency scam
Unfortunately, the Libra scandal was not an exceptional case. Bubblemap analysts trace the origins of Libra to the team behind the Token of Melania and other bomb and diver schemes. The same group launched several coins that increased price before failing.
President Milei, a self -proclaimed libertarian and Bitcoin enthusiastic, used his platform to share information about LIBRA. His tweet locked a career among investors eager to capitalize on his reputation.
It is still amazing that influential figures have not yet understood the true impact of their statements in an industry largely promoted by speculative interest. As the Token value shot, experts began to download their tokens. In a matter of hours, the market capitalization fell from $ 4.5 billion to only a fraction of that amount.
However, the chain analysis shows that Libra was mainly designed to cheat investors. The founders had 70% of the tokens supply, which allowed them to benefit massively while leaving vulnerable retail investors. When experts charged, many merchants lost almost everything they had invested.
Such pumping and diver schemes always follow the same play book: a high -profile personality awakens the interest of investors, experts embols their profits and the Token collapse. This pattern was developed with a pound of textbook.
Political endorsements and market manipulation
The political endorsements used in these schemes add a disturbing turn to history. Milei’s tweet did more than spread a message; He provided credibility to a high -risk asset. When a acting president supports a project, many assume that there is underlying merit. This assumption helped boost shopping frenzy around pound. Similar episodes occurred in the United States with Trump and Melania tokens. Politically linked meme coins have been transformed from simple speculative games into tools for financial manipulation.
Galaxy’s research analyst Alex Thorn describes Libra as the last example of a series of implosions of memes based on Solana. During this accident, Solana’s transaction volumes collapsed at the mid -2024 levels, and there is a growing concern for an unlocking FTX unlocking of $ 1.5 billion. These factors are combined to exert additional pressure on the price of Solana.
Memes currencies, which dominated the headlines in 2024, now face harsh market realities in 2025. Many of these tokens have already lost 30-60% of their value. The activity on platforms such as Pump.Fun has been crazy, and the volume of general negotiation in the sector is in free fall.
The trend of politically private tokens creates an environment where exaggeration easily cancels the foundations. The political figures lend their names to projects with little supervision. This practice allows expert groups to generate great profits at the expense of daily investors.
The situation exposes a worrying trend in cryptographic markets. When prominent figures use their influence to buy frystolies, they convert volatile tokens into weapons for financial manipulation. These practices run the risk of undermining trust throughout the cryptographic ecosystem.
A very necessary ending for the cycle of chaotic memes currencies?
The $ Libra debacle should serve as a hard lesson for retail investors. Many of those who lost money had a high level of technical knowledge, since they needed Solana and Tokens Sol wallets to participate.
However, the general attractiveness of political loads often attracts investors who believe that a support of a political heavyweight guarantees success. Reality showed otherwise. When high profile experts explode their internal knowledge to leave early, the result is disastrous for retail participants.
As institutional investors change their focus on more stable markets such as Bitcoin and Ethereum ETFs, appetite for memes currencies could be decreasing. Political memes currencies remain the border without cryptography law. Their volatile nature and their inherent manipulation make them a bad choice for risky risk investors. Recent consequences suggest that market emotion has finally been advanced to the foundations of sound.
Political Memes Coins represent a clear symptom of a major problem. They expose vulnerabilities in a market that still lacks a solid regulatory framework. When the emotion around a meme currency a careful analysis, the consequences can be serious. Investors can see short -term profits, but inevitable collapse brings long -term damage. The case of $ Libra demonstrates that political endorsements do not safeguard against market manipulation.
