How World Leaders Quietly Pocket Millions While You Lose Everything
A revealing look at how powerful figures use hype and endorsements to pocket billions while leaving ordinary investors in ruins.
The $TRUMP Memecoin - From Hype to Collapse
The rise and collapse of politically backed cryptocurrencies like $TRUMP and $LIBRA have exposed serious flaws in the cryptocurrency ecosystem. What began as a high-profile embrace of digital assets by major political figures quickly turned into a financial disaster for thousands of retail investors. These incidents have not only shaken trust in the market but have also raised urgent questions about regulatory oversight, ethical responsibility, and the unchecked power of political figures in financial markets.
The Need for Stronger Regulations
One of the biggest takeaways from these scandals is the glaring lack of clear regulations governing cryptocurrency promotions, particularly by influential public figures. While traditional financial markets have strict rules regarding disclosures and conflicts of interest, the crypto world remains largely unregulated, creating a playground for manipulation.
In the United States, the Securities and Exchange Commission (SEC) has shown it is willing to take action against celebrity crypto promotions, such as when Kim Kardashian was fined $1.26 million in 2022 for failing to disclose she was paid to promote a token. But the response to $TRUMP, which involved a former and sitting president, has been noticeably weaker. This raises the question: Are political figures above the same scrutiny that applies to celebrities and financial influencers?
Meanwhile, in Argentina, President Javier Milei’s involvement in $LIBRA led to direct fraud accusations. The legal system there has responded much more aggressively than in the U.S., with lawyers pushing for criminal charges and even impeachment. This stark difference highlights how different regulatory environments create loopholes for political figures to exploit, depending on where they operate.
To prevent future abuse, financial watchdogs must establish clear guidelines on how cryptocurrencies can be promoted and enforce strict disclosure requirements for any financial endorsements by public figures. Without these protections, politically motivated cryptocurrency launches will continue to exploit public trust for private gain.
Why Investor Education Is More Important Than Ever
While regulatory oversight is necessary, it is not enough on its own. The $TRUMP and $LIBRA crashes both followed a familiar pattern: an influential figure promotes a token, early buyers profit, and late investors lose everything. This is a classic "pump and dump" play, yet thousands of people still fell for it.
The crypto world thrives on hype, often overshadowing basic financial principles. Many investors do not conduct proper due diligence before buying in. With $TRUMP, many assumed that Trump’s name alone was enough to guarantee long-term value, ignoring the fact that his organisation controlled 80% of the supply. With $LIBRA, many Milei supporters believed in the token’s promise to "boost economic growth," even though it had no clear use case or financial backing.
Financial literacy initiatives must be prioritised to prevent ordinary investors from falling into the same traps again. Platforms like DexScreener already provide tools that allow users to track token ownership distribution, offering a clear warning sign when a small group controls the majority of a token’s supply. However, most casual investors do not know how to use these tools or what red flags to look for.
Governments, financial institutions, and even social media platforms should play a role in educating users on the risks of investing in politically-backed digital assets. If the public continues to treat high-profile endorsements as investment guarantees, these types of scams will never go away.
The Transparency Problem in Crypto
The very structure of cryptocurrencies makes them vulnerable to exploitation. Unlike traditional financial markets, there are no regulatory disclosures, no quarterly earnings reports, and no official oversight on token issuances. This lack of transparency enables fraud on a massive scale.
In the case of $TRUMP, reports showed that CIC Digital and affiliated insiders cashed out at the peak while the general public was still buying in. These sell-offs were visible on blockchain explorers, yet few were paying attention until it was too late. With $LIBRA, evidence suggested that insiders had planned their exit weeks in advance, yet retail investors had no way of knowing.
One solution is to require full disclosure of token ownership structures. Just as publicly traded companies must disclose their major shareholders, crypto projects should be legally required to provide information about who holds large portions of a token. This would allow investors to make more informed decisions before buying into a scheme that could collapse at any moment.
Additionally, independent auditing of major token projects could prevent fraudulent behaviour. Third-party blockchain analysis firms could verify whether a token’s ownership is decentralised or dangerously concentrated, giving investors a clearer picture of potential risks.
Holding Promoters Accountable
It is not enough to simply educate investors and improve transparency—those responsible for these financial disasters must be held accountable.
The U.S. SEC has the power to penalise misleading financial promotions, yet it has hesitated when it comes to political figures promoting memecoins. If celebrities like Kim Kardashian can be fined millions for a single tweet, there is no reason why Trump-affiliated entities should be exempt from similar penalties for a financial product that led to billions in losses.
In Argentina, legal action against Milei is already underway, but it remains to be seen whether he will face actual consequences or if the case will fade away due to political influence. Public pressure is crucial in ensuring that legal accountability is pursued, regardless of a person’s position or influence.
Governments must make it clear that financial fraud will not be tolerated—no matter who is involved. Crypto’s credibility depends on trust, and allowing high-profile figures to walk away unscathed after scamming investors sends the wrong message to the entire market.
The Future of Political Memecoins
Despite the fallout from $TRUMP and $LIBRA, political figures will likely continue experimenting with crypto. The potential for fast money, ideological branding, and direct community fundraising makes memecoins an attractive tool for modern politics.
But unless proper safeguards are put in place, these tokens will remain nothing more than tools for financial manipulation. If political memecoins are to have any legitimate future, they must be backed by real utility, decentralised ownership, and strict legal compliance.
Investors must also learn to see past the hype. A politician’s endorsement does not make an investment safe. If the crypto industry wants long-term legitimacy, it must reject scams disguised as innovation and demand accountability from all figures involved - whether they are influencers, CEOs, or even world leaders.
Final Thoughts
The collapse of $TRUMP and $LIBRA should be a wake-up call for investors, regulators, and the entire cryptocurrency ecosystem. These events exposed serious flaws in how digital assets are promoted, managed, and sold to the public. Without tighter regulations, better investor education, greater transparency, and real accountability, these same scams will repeat - just with different names and different political faces.
Cryptocurrency has the potential to revolutionise finance, but only if it is built on trust rather than deception. If we continue to accept politically-backed rug pulls as "normal", then the crypto world will never be more than a playground for the rich, while ordinary people pay the price.
The question is: Will we learn from these lessons, or will we allow history to repeat itself?
Please do not give any of your hard earned wealth to these charlatans.