Introduction

The rise of tainted politically-themed meme coins in 2025 was a weird chapter in the cryptocurrency story. It mercifully might have come to an end last week, as the $LIBRA token, initially backed by Argentinian president Javier Milei, crashed by 90% after reaching a market cap of $4.5 billion. For many in crypto, it was the straw that broke the camel’s back, just like 2022’s FTX collapse.

Since then the autopsy around its demise revealed that there are some shady foxes in the crypto hen house (aka known in crypto as the cabal) bleeding the space dry as they ‘snipe’ (buy before anyone else) new tokens early in order to maximise their profits and dump their coins on incoming retail buyers. 

In Kendrick Lamar’s words, “They’re not like us”. 

Here is the Libra mastermind Hayden Davis talking about “max extracting” (or selling the top) on another project prior. 

Davis later admitted to being involved with other crashes such as the $MELANIA meme coin. 

It’s clear now that the game is rigged, and this situation is raising questions about the ethical implications and regulatory frameworks surrounding meme coins, especially when they involve high-profile politicians and celebrities. 

The U.S. government announced a new Cyber and Emerging Technology Unit (CETU) agency – so maybe help is on the way for retail investors. This may well one day result in prosecutions similar to the fallout of the 2017 ICO craze, and 2021 token promotions by Floyd Mayweather and other celebrities.

For now, let’s look at the scandals and lessons of PolitiFi meme coin launches that have halted crypto in its tracks in 2025 and fooled investors for “billions and billions of dollars” thus far. 

The Political Memecoin Wall of Shame

1. $TRUMP Coin

Launched just days before Donald Trump‘s inauguration in January 2025, the $TRUMP coin quickly gained attention, surging to a peak of $75 before crashing to around $19 shortly thereafter. 

Critics raised concerns about the token’s structure, as a significant portion was controlled by entities affiliated with the Trump Organization, leading to accusations of potential market manipulation and conflicts of interest. 

The token’s rapid rise & fall exemplified the volatility and speculation inherent in meme coins, and crashed all crypto markets as a result, extracting a lot of value from the space. 

2. $MELANIA Coin

Following the launch of $TRUMP, Melania Trump introduced her own meme coin, $MELANIA. It experienced a staggering increase in value, then quickly lost nearly 80% of its value. The coin’s connection to Melania Trump drew significant media attention, but it also raised ethical questions regarding the use of celebrity endorsements in potentially fraudulent schemes. 

Hayden Davis of $LIBRA recently admitted to being part of the launch, and it’s come to light that several influencers and other insiders were given the contract address by Meteora before the launch, allowing them to snipe tokens for cheap. It has resulted in CEO Ben Chow stepping down this week. As a result, Solana’s price took a big dump this week. Shame! Shame! 

3. $LIBRA Coin

In Argentina, President Javier Milei briefly promoted $LIBRA as part of his economic strategy. Initially celebrated as a bold move to boost the economy, it quickly devolved into controversy when insiders such as Kelsier Ventures executed a ‘rug pull’, leading to an 80% drop in value shortly after its launch. Almost $100 million was pilfered by insiders during the launch.

This incident caused financial losses for investors, and the political outrage against Milei’s administration may yet see him impeached.

Argentina’s Memecoin Disaster Is Worse Than You Think. You can watch the whole debacle here:

4. Barron Trump Coin

An unofficial meme token named after Barron Trump briefly captured attention with a market capitalization reaching $460 million before crashing by 95%. This incident demonstrated how easily scammers could exploit high-profile names to create fraudulent tokens that misled investors.

5. $CAR Crash

In February 2025, the Central African Republic (CAR) launched its official meme coin, $CAR, as an experiment to unite people, support national development, and uniquely place CAR on the world stage. (If you see the word “experiment” in crypto, stay away!)

CAR’s embrace of crypto innovation isn’t new; in 2022, it became the second country after El Salvador to adopt Bitcoin as legal tender. Despite holding reserves of gold and diamonds, CAR struggles with economic instability. The government hoped to capitalize on the meme coin trend to draw international attention and investment. 

The value of $CAR soon experienced a dramatic decline, dropping as much as 90% on some exchanges. Next, the Twitter account dedicated to $CAR updates was suspended, raising concerns. Additionally, there were reports that the President’s announcement video showed signs of being a fake video, casting doubts on the whole project.

Despite these issues, President Touadéra remained optimistic, suggesting that $CAR could fund national development projects, such as renovating educational institutions. I wouldn’t hold my breath, or my tokens. 

6. $JAILSTOOL: The Alleged Dave Portnoy “Rug Pull”

In 2025, Dave Portnoy, the outspoken founder of Barstool Sports, faced accusations of a ‘rug pull’ involving a meme coin called $JAILSTOOL. Portnoy mocked investors online for being fools, but ironically days later he had to be bailed out by $5 million by Hayden Davis (as an important social media influencer) after he lost it in the Libra launch. 

Ethical Concerns and Market Manipulation

Critics argue that using political figures for financial gain blurs the lines between legitimate investment opportunities and exploitative schemes designed primarily for profit at the expense of unsuspecting investors. In Trump’s hands-off regulatory approach to crypto, this becomes more important than ever.

The ease with which these tokens can be launched – with minimal regulatory oversight – creates an environment ripe for fraud and manipulation, especially when all these retail buyers don’t understand much about token issuance. It’s time for change. 

Can We Fix Meme Coins Through Regulation? 

To address the fallout from exploitative meme coin trends and protect investors, comprehensive regulatory frameworks are necessary. Here are some potential fixes recommended by experts:

1. Enhanced Transparency Requirements

Regulatory bodies should mandate clear disclosure of tokenomics (i.e. the economic model behind a cryptocurrency) including information about token distribution, ownership concentration, and potential risks associated with investment.

2. Investor Education Initiatives

Governments should implement educational programs aimed at informing potential investors about the risks associated with cryptocurrencies and how to identify red flags in speculative investments.

3. Licensing for Token Creators

Require developers of new cryptocurrencies to obtain licenses: this can help ensure that only responsible entities enter the market, while providing a mechanism for accountability.

4. Collaboration with Blockchain Analytics Firms

Regulatory agencies should partner with blockchain analytics firms to monitor transactions and identify suspicious activity related to newly launched tokens.

5. Global Regulatory Coöperation

Given the borderless nature of cryptocurrencies, international coöperation among regulatory bodies is essential to create uniform standards that prevent exploitation across jurisdictions.

Conclusion

As seen with tokens like $TRUMP, $MELANIA, and $LIBRA, speculation driven by celebrity endorsements can lead to devastating financial consequences for everyday investors. To mitigate these risks, robust regulatory frameworks must be established that prioritize transparency, accountability, and investor protection, and these must be enforced. 

Luckily, the blockchain is immutable and every single transaction there forever. So if you’re a meme coin scammer or rugpuller, know that maybe one day, CETU is gonna GETU.

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