The synergy of political endorsement and highly -imaginative properties such as meme coins are always dependent on disastrous, and Libra’s recent scandal is a clear reflection of this concern.
It has come to crypto in the last decade. The mainstream adoption, institutional interests, and regulatory clarity have helped the industry gain credibility. And the meme coins also carved out an exciting niche in this sector, reflecting creativity and community relationships. However, political meme coins can break down decades of developmental amounts very fast.
A promotion Post From Argentina president Javier Milei, Libra’s investors have been losing more than $ 250 million in just the time. His endorsement caused a purchase of anger that pushed the price from near zero to almost $ 5 in minutes. Quickly released by the insider, Crushing more than $ 107 million in tokens before the price collapsed. Argentina’s Fintech room labeled this classic rug pull without mincing words.
The anatomy of a meme coin scam
Unfortunately, Libra’s scandal is not a rare case. Bubblemap analysts Libra’s origins were tracked back to the team behind Melania’s token and other pump-and-dump schemes. The same group launched some coins that were swollen with price before crashing.
President Milei, a self-expressed libertarian and bitcoin enthusiast, used his platform to share information about Libra. His tweet has fed a rush to investors eager to achieve his reputation.
It is still surprising that influential figures do not yet understand the true impact of their statements in an industry that is more driven by the imagination of interest. As the cost of the token rises, the insider began the removal of their tokens. Within a few hours, the coin market cover fell from $ 4.5 billion to just a fraction of that amount.
However, On-chain review is displayed That Libra is starting to be designed to potential scam investors. The founders held 70% of the token supply, allowing them to earn a lot while leaving retail investors. When the insanity came out, many businessmen were lost to almost all of their investing.
Such pump-and-dump schemes always follow the same playbook: a high-profile personality emits the investor’s interest, the insider pours their income, and the tokens that collapse. This pattern is played along with Libra in a fashion textbook.
Political endorsement and market manipulation
The political endorsements used in these schemes add a disturbing twist to the story. Milei’s tweet was more than spreading a message; It lends credentials to a high risk of possession. When a sitting president supports a project, many think there is a basic merit. This assumption helped driving a frenzy purchase around Libra. Similar stages took place in the United States including Trump and Melania tokens. Coins linked to political linked only from imaginary plays in financial manipulation tools.
Galaxy research analyst alex thorn describes Libra as the latest example of a series of Solana -based meme implosions. During this crashingSolana’s transaction volumes have collapsed at mid-2024 levels, and there is a growing concern at a $ 1.5 billion FTX token unlock. These factors are combined to put additional pressure on Solana’s price.
Meme coins, which ruled the titles in 2024, now faced harsh facts in the market in 2025. Many of these tokens have gone 30-60% of their value. Activity on platforms such as pump.fun is cratered, and the overall trading volume in the sector is in freefall.
The trend of political -adopted tokens creates an environment where the hype can easily be missed. Political figures lend their names to projects with minimal supervision. This training provides a group of insider that will generate huge profits at the cost of the day -to -day investors.
The situation exposes a disturbing trend to the crypto markets. When well -known figures use their influence to spark the purchase of Frenzies, the tokens for financial manipulation becomes a mental person. Such risk skills that distract trust in the entire crypto ecosystem.
A required ending in the chaotic meme coin cycle?
The $ Libra debacle should serve as a harsh lesson for retail investors. Many of those who have lost money have a high level of technical knowledge, as they need Solana and Sol tokens wallets to participate.
However, the overall appeal of tokens charged with politics often attracts investors who believe that a endorsement from a political weight loss guarantees success. The truth is proven if not. When high-profile insults take advantage of their interior knowledge to exit early, the outcome is detrimental to retail participants.
As institutional investors move their focus to more stable markets such as Bitcoin and Ethereum ETF, the appetite for coin meme can disappear. Political meme coins remain without crypto border. Their volatile nature and natural manipulation made them a bad choice for investors at risk. The recent collapse suggests that the market chaos has finally ran earlier on sound foundations.
Political meme coins represent a clear symptom of a greater problem. They expose weaknesses in a market that still lack a solid framework of regulation. When the disturbance around a coin meme cares for careful examination, the consequences can be severe. Investors may see short -term acquired ones, but inevitable collapse causes long -term damage. The case of $ Libra proves that political endorsements are not protected against market manipulation.
