Trump, Milei, and the Crypto Illusion: When Politics Plays with the People’s Money
The digital finance sector has been rocked by a major scandal: the $TRUMP and $MELANIA cryptocurrencies, launched by Donald and Melania Trump, have crashed, causing estimated losses of $12 billion for investors.
Initially launched in January 2025, $TRUMP experienced a meteoric rise, peaking at $73.43 before plummeting to $11.27, an 80% drop within a month. A similar fate befell Melania’s cryptocurrency, leaving investors with devastating losses. For instance, a $10,000 investment at its peak is now worth just $652.44.
This dramatic decline was predictable: these “meme coins” were fuelled purely by Trump’s political popularity rather than any real blockchain technology or sustainable financial project. This frenzy of speculation, driven by a loyal supporter base, echoes other financial bubbles orchestrated by populist figures.
When Politics Interferes with Finance: A Recurring Pattern
The Trump affair mirrors another recent scandal involving Javier Milei, Argentina’s libertarian president, who also exploited the cryptocurrency boom. A staunch advocate of Bitcoin and deregulated markets, Milei saw his administration implicated in a massive crypto fund scheme involving advisers close to his government. In Argentina, investors lost millions of dollars in assets falsely promoted as a solution to the country’s hyperinflation crisis.
What do these cases have in common? A cynical exploitation of public hopes, where political leaders ride financial trends to bolster their image while draining money from their own electoral base. In both instances, those who believed in the promises ended up bankrupt.
Institutional Responses: Towards Crypto Asset Regulation?
In the wake of these scandals, governments are taking action. In the United States, Representative Sam Liccardo has proposed legislation to ban politicians and their families from endorsing or promoting digital assets. The aim is to prevent public figures from manipulating markets for personal gain.
However, a crucial question remains: Will regulation be enough to protect citizens from their own blind faith in populist figures? Beyond legal frameworks, a broader public awareness campaign is needed to highlight the dangers of mixing politics with finance when electoral opportunism is the sole driving force.
Conclusion: Populist Finance, a Recurring Poison
Whether it’s Trump or Milei, populist leaders exploit the flaws of financial systems to strengthen their influence. History reminds us that extreme ideologies, coupled with simplistic economic promises, always lead to crises and ruin for the most gullible.
This Trump crypto scandal is just the latest in a long line of financial manipulations dressed up in political slogans. The real question is: Will the public finally learn from the past..?
G.S.
