Donald Trump’s fluctuating stance on cryptocurrency reflects political opportunism, influenced by campaign funding from the crypto sector. His endorsement of meme coins like $TRUMP fuels market manipulation, resulting in substantial investor losses. Similar patterns are observed with other far-right leaders, who use cryptocurrencies to undermine state authority while benefiting their donor networks through reduced regulation and strategic reserves.
In 2021, Donald Trump labelled cryptocurrency as a “disaster waiting to happen.” However, following substantial financial backing from the crypto industry during his campaign, he shifted his stance, promising to position the U.S. as a cryptocurrency capital. This pivot included plans for a Bitcoin strategic reserve, highlighting a connection between political donations and crypto endorsement.
Just prior to his inauguration, the $TRUMP meme coin emerged, leading to significant market manipulation. Upon promotion by Trump, its value exploded, generating massive profits for the firms involved, notably CIC Digital, owned by Trump. However, the coin quickly lost value, leading to over $2 billion in losses for around 800,000 investors. Trump’s crypto engagements reflect broader trends of financial exploitation.
The discourse extends beyond Trump to other far-right leaders, including Argentina’s Javier Milei, embroiled in a scandal linked to the $LIBRA meme coin, which caused significant investor losses. Previous discussions highlighted how cryptocurrencies mimic pyramid schemes, with deceptive practices like “sniping” and “rug-pulling” enriching insiders at the expense of average investors.
Milei’s economic approach, including radical cuts to government spending, has increased poverty in Argentina, despite initial inflation reduction. His promotion of $LIBRA, followed by its rapid devaluation, raised suspicions about insider connections, reflecting how meme coins serve as unregulated financial traps.
In the U.S., Trump’s administration aligns with pro-crypto agendas, placing figures like David Sacks, known for potential conflicts of interest, in key roles. This has resulted in reduced regulatory oversight, facilitating fraud in the industry. With the SEC rolling back rigorous regulations, meme coins like $TRUMP pose risks for investors.
Furthermore, a proposed strategic crypto reserve appears to favour wealthy donors associated with the Trump campaign. Advocates argue it aids national security, although critics view it as benefiting oligarchs at taxpayers’ expense. The far-right’s affinity for crypto arises from its potential to subvert central authority and provide anonymity, fostering illicit activities and wealth concentration.
The overall context illustrates a troubling convergence of politics and cryptocurrency marked by exploitation and corruption, as Trump and Milei leverage public trust for personal enrichment while promoting deregulation.
