From TRUMP to LIBRA: Did Celebrity Memecoins Derail the Crypto Bull Run?

On November 19, 2023, in Buenos Aires, Argentine President Javier Milei witnessed a series of eye-catching "memecoin rug pulls" that raised concerns about the crypto craze damaging Bitcoin's reputation as a stable monetary asset. From the Trump administration's support for TRUMP Token, with the First Lady's endorsement of memecoins, to the LIBRA scandal in Argentina, these speculative frenzies have repeatedly made headlines, blurring the line between Bitcoin—a digital currency that could potentially become the cornerstone of the 21st-century economy—and various pump-and-dump schemes.

Bitcoin itself may not be significantly affected, but the Trump administration's plan to reform the regulatory framework for digital assets, which was intended to provide much-needed guidance for financial innovators, may now be in jeopardy. Instead, the administration's naive and indiscriminate promotion of the crypto market is harming retail investors—a bitter reality for the Bitcoin community.

More broadly, the global libertarian movement, which has only recently gained a foothold in power, risks being tarnished by financial speculation at this critical juncture. As people expect "real adults" to take charge, Javier Milei, a learned economist and staunch supporter of sound money, has promised radical measures, such as shutting down Argentina's central bank and promoting gold and Bitcoin.

Today, one crypto scam after another is unfolding, and the Bitcoin community's long-standing warnings about the "crypto casino" are being proven true. The victims are not just the retail investors who have been "sheared like lambs." Most newcomers still fail to recognize the fundamental difference between Bitcoin and speculative altcoins, and thus may overlook Bitcoin's potential as a neutral and immutable currency. Now is the time for influential figures and policymakers to make it clear: Bitcoin is the only digital asset that can provide truly sustainable value to large institutions and the global economy.

1. The Rise and Crash of Memecoins

Recently, the dramatic price swings of memecoins have created a huge buzz, but also countless heartbreaks. These events once again demonstrate the serious consequences of conflating Bitcoin with the entire crypto market.

1) The LIBRA Fiasco in Argentina

In Argentina, a crypto project called LIBRA quickly turned into a national scandal overnight. In mid-February, the newly elected President, Javier Milei—a self-proclaimed libertarian and Bitcoin supporter—publicly endorsed LIBRA Token on social media, promoting it as a private initiative aimed at boosting Argentina's economy. Followers and retail investors, inspired by Milei's call, flocked to the project, and the price of LIBRA soared from $0 to nearly $5 in an instant.

However, within just a few hours, the price of LIBRA plummeted by over 80%, falling below $1. Blockchain analysts quickly uncovered the reason: internal wallets had almost immediately sold off their tokens after the launch, cashing out over $107 million, while ordinary investors could only watch their funds evaporate. The Argentine Fintech Association also acknowledged that the operation of this event was no different from a typical "rug pull" scam.

2) Political Fallout

Opposition lawmaker Leandro Santoro quickly spoke out, saying, "This scandal has brought shame upon us internationally, and we must initiate an impeachment request against the President." Milei promptly deleted his promotional post and hastily distanced himself from LIBRA, arguing, "I was not aware of the specifics of the project, and once I learned the details, I decided not to promote it anymore."

But for the thousands of investors who were left holding the bag, it was already too late. A token endorsed by the nation's highest leader turned out to be a pump-and-dump scheme, casting a shadow over Milei, who was hailed as Argentina's first truly economically literate president in at least a century. This farce vividly demonstrated how irresponsible crypto policies could undermine the credibility of an entire political movement.

3) Trump's TRUMP Token

On the other side of the globe in the United States, an even larger memecoin frenzy was unfolding, this time directly involving the nation's top leader.

In January of this year, former U.S. President Donald Trump launched an official memecoin, TRUMP, on the Solana blockchain. The token was promoted as the "only official Trump memecoin" and leveraged Trump's personal brand and the trust associated with the MAGA (Make America Great Again) movement to fuel a frenzy before his inauguration.

The intensity of this mania was extremely rare even by crypto standards. Within just a few days of its launch, the price of TRUMP skyrocketed, with its total market value once reaching over $14.5 billion and the price per token peaking at around $73. This historic surge coincided with the "Crypto Ball," a crypto-themed event held in Washington D.C., hosted by tech investor and the Trump administration's "Crypto Tsar," David Sacks.

However, the party was short-lived. As guests of the Crypto Ball were still nursing their hangovers, the price of TRUMP plummeted within days. By early February, just two weeks later, the token had lost two-thirds of its value.

Chainalysis, a blockchain analytics firm, found that the top 50 holders each cashed out over $10 million, while around 200,000 retail investors suffered heavy losses. Ultimately, insiders made a fortune, while many retail MAGA supporters, likely attracted by the "Trump" brand, became the ultimate losers.

According to Reuters, the exchange where $TRUMP was listed, Meteora, deducted a fee for each transaction that was kicked back to the token's issuers. In just two weeks, the team behind TRUMP earned approximately $86 million to $100 million from transaction fees alone.

4) Melania Trump's Memecoin Frenzy

A few days after the launch of TRUMP Token, Melania Trump, the former First Lady of the United States, quickly followed suit by launching her own memecoin. Less than 12 hours before the presidential inauguration, she announced the issuance of her personal token, MELANIA, on the Solana blockchain.

The token immediately sparked a new wave of speculative frenzy. Many who had seen early investors in TRUMP make a fortune believed this was their "second chance." Within just a few hours of its launch, the price of MELANIA surged by 24,000%, reaching a peak of around $13, with its total market value approaching $1.8 billion in a single day.

However, reality soon struck hard. Over the same weekend, MELANIA plunged 80% from its peak, falling below $3. Similar to TRUMP, the distribution and issuance intentions of MELANIA were also called into question. Analysts pointed out that 80% of the supply of TRUMP Token was held by a single whale address, and MELANIA faced a similar issue of high centralization.

5) Bipartisan Criticism of the "First Family's" Crypto Speculation

The Trumps' cryptocurrency moves quickly drew criticism from both major political parties in the United States. While charges of self-enrichment may be hard to substantiate—given the Trump family's immense wealth—what is more disappointing is the lack of maturity shown by Donald Trump Jr., Eric Trump, and the Trump administration's "Crypto Tsar," David Sacks, in their involvement in these events.

2. Trump's Crypto Policy: A Double-Edged Sword for Bitcoin

The scandals mentioned above share a common thread: they all involve speculative altcoins that rely on hype, insider manipulation, and a lack of transparency, which is the antithesis of what Bitcoin stands for. For years, veterans in the Bitcoin community have been working to distinguish Bitcoin from the "crypto market" because they understand the potential harm of such conflation.

The Bitcoin community quickly distanced itself from these farces. Unlike Bitcoin, these altcoins' prices are entirely dependent on speculative trading based on the "greater fool theory," while Bitcoin is a neutral, decentralized payment network with hundreds of millions of users and a predictable monetary policy. Such scams not only harm investors but also tarnish the reputation of the entire digital asset space, potentially spilling over to Bitcoin.

Nevertheless, the Bitcoin community still hopes that the Trump administration can bring about a reasonable regulatory environment to promote financial technology innovation and accelerate the adoption of Bitcoin. For millions of Americans holding Bitcoin, tax reform and increased regulatory transparency would be welcome.

However, indiscriminately promoting cryptocurrencies may do more harm than good. If the public's impression of "cryptocurrencies" is limited to these pump-and-dump scams, rather than recognizing Bitcoin's potential in combating inflation and financial instability, the long-term development of the crypto industry will be severely hindered. If Trump's so-called "promotion of the crypto industry" is merely condoning or even participating in such speculation, it could ultimately lead to stricter regulatory crackdowns. In the event of a market crash, the government might lump all digital assets together as sources of risk, with Bitcoin businesses and users also being caught in the crossfire.

Poor regulation often stems from negative public sentiment. If the crashes of LIBRA and TRUMP are used as excuses for regulatory crackdowns, some policymakers who are hostile to cryptocurrencies might target Bitcoin—despite its non-involvement in these scams—and introduce punitive new rules.

3. It's Time to Reaffirm Commitment to Bitcoin

The urgent task is to establish a clear policy that encourages the widespread use of Bitcoin as a reserve asset, payment network, and vehicle for innovation. Policymakers and influential figures in the tech and financial sectors have a responsibility to clearly distinguish Bitcoin from "cryptocurrencies." In this current farce, key figures like David Sacks and Chamath Palihapitiya can play a crucial role.

David Sacks, a well-known venture capitalist and political donor, hosted the "Crypto Ball." Instead of focusing on the glitz and glamour of memecoin parties, these industry thought leaders should use their influence to educate newcomers about Bitcoin's unique value and warn them of the risks associated with chasing the price surges of altcoins.

Chamath Palihapitiya, an early Bitcoin investor with a large following, has publicly stated that Bitcoin could be the "ultimate insurance" and will play a central role in the future financial system. However, he is also an investor in the Solana ecosystem, which has been the technical foundation for several recent pump-and-dump scams. This contradictory messaging is not only confusing but also undermines the core value of Bitcoin. Given Chamath's influence in Silicon Valley and Wall Street, he is well-positioned to explain to the market how Bitcoin's fundamental attributes—scarcity, decentralization, and security—make it fundamentally different from the speculative Solana tokens.

For David Sacks, Chamath, and all other influential figures in tech and finance, their mission should be to use their platforms responsibly. Educating the public may not be as eye-catching as hosting Crypto Ball or making bold price predictions, but it is crucial at this moment. These industry leaders should focus on how Bitcoin can empower the global financial system, such as its practical applications in high-inflation countries or among the unbanked population, and contrast it sharply with the empty promises of memecoins. They can advocate for industry standards that recognize Bitcoin as an emerging digital commodity and reserve asset, while un-audited altcoins should be categorized as risky stocks or gambling applications. Only in this way can the risk of investors falling for scams be reduced, and the market truly understand the value of Bitcoin.

The time for action is now. Industry leaders, investors, and policymakers must step forward to demand transparency, expose bad actors, and defend the value of Bitcoin as sound money. Only by clearly supporting Bitcoin and firmly opposing scams can the market's focus be realigned—how Bitcoin can improve society. For the livelihoods of investors and the future application of Bitcoin, silence or compromise at this moment could come at a high cost.

It's time to make Bitcoin great again.

From TRUMP to LIBRA: Did Celebrity Memecoins Derail the Crypto Bull Run?

On November 19, 2023, in Buenos Aires, Argentine President Javier Milei witnessed a series of eye-catching "memecoin rug pulls" that raised concerns about the crypto craze damaging Bitcoin's reputation as a stable monetary asset. From the Trump administration's support for TRUMP Token, with the First Lady's endorsement of memecoins, to the LIBRA scandal in Argentina, these speculative frenzies have repeatedly made headlines, blurring the line between Bitcoin—a digital currency that could potentially become the cornerstone of the 21st-century economy—and various pump-and-dump schemes.

Bitcoin itself may not be significantly affected, but the Trump administration's plan to reform the regulatory framework for digital assets, which was intended to provide much-needed guidance for financial innovators, may now be in jeopardy. Instead, the administration's naive and indiscriminate promotion of the crypto market is harming retail investors—a bitter reality for the Bitcoin community.

More broadly, the global libertarian movement, which has only recently gained a foothold in power, risks being tarnished by financial speculation at this critical juncture. As people expect "real adults" to take charge, Javier Milei, a learned economist and staunch supporter of sound money, has promised radical measures, such as shutting down Argentina's central bank and promoting gold and Bitcoin.

Today, one crypto scam after another is unfolding, and the Bitcoin community's long-standing warnings about the "crypto casino" are being proven true. The victims are not just the retail investors who have been "sheared like lambs." Most newcomers still fail to recognize the fundamental difference between Bitcoin and speculative altcoins, and thus may overlook Bitcoin's potential as a neutral and immutable currency. Now is the time for influential figures and policymakers to make it clear: Bitcoin is the only digital asset that can provide truly sustainable value to large institutions and the global economy.

1. The Rise and Crash of Memecoins

Recently, the dramatic price swings of memecoins have created a huge buzz, but also countless heartbreaks. These events once again demonstrate the serious consequences of conflating Bitcoin with the entire crypto market.

1) The LIBRA Fiasco in Argentina

In Argentina, a crypto project called LIBRA quickly turned into a national scandal overnight. In mid-February, the newly elected President, Javier Milei—a self-proclaimed libertarian and Bitcoin supporter—publicly endorsed LIBRA Token on social media, promoting it as a private initiative aimed at boosting Argentina's economy. Followers and retail investors, inspired by Milei's call, flocked to the project, and the price of LIBRA soared from $0 to nearly $5 in an instant.

However, within just a few hours, the price of LIBRA plummeted by over 80%, falling below $1. Blockchain analysts quickly uncovered the reason: internal wallets had almost immediately sold off their tokens after the launch, cashing out over $107 million, while ordinary investors could only watch their funds evaporate. The Argentine Fintech Association also acknowledged that the operation of this event was no different from a typical "rug pull" scam.

2) Political Fallout

Opposition lawmaker Leandro Santoro quickly spoke out, saying, "This scandal has brought shame upon us internationally, and we must initiate an impeachment request against the President." Milei promptly deleted his promotional post and hastily distanced himself from LIBRA, arguing, "I was not aware of the specifics of the project, and once I learned the details, I decided not to promote it anymore."

But for the thousands of investors who were left holding the bag, it was already too late. A token endorsed by the nation's highest leader turned out to be a pump-and-dump scheme, casting a shadow over Milei, who was hailed as Argentina's first truly economically literate president in at least a century. This farce vividly demonstrated how irresponsible crypto policies could undermine the credibility of an entire political movement.

3) Trump's TRUMP Token

On the other side of the globe in the United States, an even larger memecoin frenzy was unfolding, this time directly involving the nation's top leader.

In January of this year, former U.S. President Donald Trump launched an official memecoin, TRUMP, on the Solana blockchain. The token was promoted as the "only official Trump memecoin" and leveraged Trump's personal brand and the trust associated with the MAGA (Make America Great Again) movement to fuel a frenzy before his inauguration.

The intensity of this mania was extremely rare even by crypto standards. Within just a few days of its launch, the price of TRUMP skyrocketed, with its total market value once reaching over $14.5 billion and the price per token peaking at around $73. This historic surge coincided with the "Crypto Ball," a crypto-themed event held in Washington D.C., hosted by tech investor and the Trump administration's "Crypto Tsar," David Sacks.

However, the party was short-lived. As guests of the Crypto Ball were still nursing their hangovers, the price of TRUMP plummeted within days. By early February, just two weeks later, the token had lost two-thirds of its value.

Chainalysis, a blockchain analytics firm, found that the top 50 holders each cashed out over $10 million, while around 200,000 retail investors suffered heavy losses. Ultimately, insiders made a fortune, while many retail MAGA supporters, likely attracted by the "Trump" brand, became the ultimate losers.

According to Reuters, the exchange where $TRUMP was listed, Meteora, deducted a fee for each transaction that was kicked back to the token's issuers. In just two weeks, the team behind TRUMP earned approximately $86 million to $100 million from transaction fees alone.

4) Melania Trump's Memecoin Frenzy

A few days after the launch of TRUMP Token, Melania Trump, the former First Lady of the United States, quickly followed suit by launching her own memecoin. Less than 12 hours before the presidential inauguration, she announced the issuance of her personal token, MELANIA, on the Solana blockchain.

The token immediately sparked a new wave of speculative frenzy. Many who had seen early investors in TRUMP make a fortune believed this was their "second chance." Within just a few hours of its launch, the price of MELANIA surged by 24,000%, reaching a peak of around $13, with its total market value approaching $1.8 billion in a single day.

However, reality soon struck hard. Over the same weekend, MELANIA plunged 80% from its peak, falling below $3. Similar to TRUMP, the distribution and issuance intentions of MELANIA were also called into question. Analysts pointed out that 80% of the supply of TRUMP Token was held by a single whale address, and MELANIA faced a similar issue of high centralization.

5) Bipartisan Criticism of the "First Family's" Crypto Speculation

The Trumps' cryptocurrency moves quickly drew criticism from both major political parties in the United States. While charges of self-enrichment may be hard to substantiate—given the Trump family's immense wealth—what is more disappointing is the lack of maturity shown by Donald Trump Jr., Eric Trump, and the Trump administration's "Crypto Tsar," David Sacks, in their involvement in these events.

2. Trump's Crypto Policy: A Double-Edged Sword for Bitcoin

The scandals mentioned above share a common thread: they all involve speculative altcoins that rely on hype, insider manipulation, and a lack of transparency, which is the antithesis of what Bitcoin stands for. For years, veterans in the Bitcoin community have been working to distinguish Bitcoin from the "crypto market" because they understand the potential harm of such conflation.

The Bitcoin community quickly distanced itself from these farces. Unlike Bitcoin, these altcoins' prices are entirely dependent on speculative trading based on the "greater fool theory," while Bitcoin is a neutral, decentralized payment network with hundreds of millions of users and a predictable monetary policy. Such scams not only harm investors but also tarnish the reputation of the entire digital asset space, potentially spilling over to Bitcoin.

Nevertheless, the Bitcoin community still hopes that the Trump administration can bring about a reasonable regulatory environment to promote financial technology innovation and accelerate the adoption of Bitcoin. For millions of Americans holding Bitcoin, tax reform and increased regulatory transparency would be welcome.

However, indiscriminately promoting cryptocurrencies may do more harm than good. If the public's impression of "cryptocurrencies" is limited to these pump-and-dump scams, rather than recognizing Bitcoin's potential in combating inflation and financial instability, the long-term development of the crypto industry will be severely hindered. If Trump's so-called "promotion of the crypto industry" is merely condoning or even participating in such speculation, it could ultimately lead to stricter regulatory crackdowns. In the event of a market crash, the government might lump all digital assets together as sources of risk, with Bitcoin businesses and users also being caught in the crossfire.

Poor regulation often stems from negative public sentiment. If the crashes of LIBRA and TRUMP are used as excuses for regulatory crackdowns, some policymakers who are hostile to cryptocurrencies might target Bitcoin—despite its non-involvement in these scams—and introduce punitive new rules.

3. It's Time to Reaffirm Commitment to Bitcoin

The urgent task is to establish a clear policy that encourages the widespread use of Bitcoin as a reserve asset, payment network, and vehicle for innovation. Policymakers and influential figures in the tech and financial sectors have a responsibility to clearly distinguish Bitcoin from "cryptocurrencies." In this current farce, key figures like David Sacks and Chamath Palihapitiya can play a crucial role.

David Sacks, a well-known venture capitalist and political donor, hosted the "Crypto Ball." Instead of focusing on the glitz and glamour of memecoin parties, these industry thought leaders should use their influence to educate newcomers about Bitcoin's unique value and warn them of the risks associated with chasing the price surges of altcoins.

Chamath Palihapitiya, an early Bitcoin investor with a large following, has publicly stated that Bitcoin could be the "ultimate insurance" and will play a central role in the future financial system. However, he is also an investor in the Solana ecosystem, which has been the technical foundation for several recent pump-and-dump scams. This contradictory messaging is not only confusing but also undermines the core value of Bitcoin. Given Chamath's influence in Silicon Valley and Wall Street, he is well-positioned to explain to the market how Bitcoin's fundamental attributes—scarcity, decentralization, and security—make it fundamentally different from the speculative Solana tokens.

For David Sacks, Chamath, and all other influential figures in tech and finance, their mission should be to use their platforms responsibly. Educating the public may not be as eye-catching as hosting Crypto Ball or making bold price predictions, but it is crucial at this moment. These industry leaders should focus on how Bitcoin can empower the global financial system, such as its practical applications in high-inflation countries or among the unbanked population, and contrast it sharply with the empty promises of memecoins. They can advocate for industry standards that recognize Bitcoin as an emerging digital commodity and reserve asset, while un-audited altcoins should be categorized as risky stocks or gambling applications. Only in this way can the risk of investors falling for scams be reduced, and the market truly understand the value of Bitcoin.

The time for action is now. Industry leaders, investors, and policymakers must step forward to demand transparency, expose bad actors, and defend the value of Bitcoin as sound money. Only by clearly supporting Bitcoin and firmly opposing scams can the market's focus be realigned—how Bitcoin can improve society. For the livelihoods of investors and the future application of Bitcoin, silence or compromise at this moment could come at a high cost.

It's time to make Bitcoin great again.