Sophia’s Thoughts On Political Meme Tokens
Political meme coins took over the crypto market recently, with leaders making headlines for their token launches. But after massive crashes and investor losses, what does this mean for the crypto space?
These are Sophia's Thoughts:
From $TRUMP to $LIBRA and $CAR, these tokens initially broke out, with promises of political alignment and economic growth, only to see prices plummet.
Solana, the network on which most of these coins were developed, has seen its price drop to USD 160.
The chaos surrounding political meme coins could make investors more cautious, shifting attention toward assets with stronger fundamentals.
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🚀 Last week’s market performance
The crypto market continued to sell off this week upon tariff and macroeconomic fears, ending the session down 5.0%. Bitcoin (BTC) performed slightly better than the market, ending the week down 3.9%. The best performing coin of the week was PancakeSwap (CAKE), which gained 19.8% after expanding its trading offerings. The worst performing coin this week was Arweave (AR) which fell 23.9%.
🧐 What is your crypto mood today?
In each Sophia's Thoughts newsletter, we ask about your crypto mood. Your response to this question helps Sophia get a better sense of the pulse of crypto markets. And this ultimately translates into better insights for you when combined with Sophia's AI models. Your data empowers Sophia to provide you with even better intelligence going forward!
📢 Who’s Launched Political Meme Coins?
Meme coins have long been a symbol of internet culture, but in 2025, political figures turned them into a new frontier for speculation—and controversy. U.S. President Donald Trump led the charge, launching $TRUMP on the Solana blockchain ahead of his inauguration, followed by his wife Melania’s $MELANIA. Right when it was launched, $TRUMP surged in value to a peak of USD 70. By the time it was listed on major exchanges a few days later, $TRUMP fell 80% from its peak value, erasing USD 2 billion from investor portfolios.
Inspired by Trump’s foray into crypto, other political leaders jumped in. The President of the Central African Republic (CAR), Faustin-Archange Touadéra, introduced $CAR on February 10, marketing it as a tool for national development. The coin initially surged to a market cap of over USD 900 million, but within days, the project unraveled—the website vanished, the domain was suspended, and $CAR lost over 75% of its value.
Argentina’s President Javier Milei became the latest politician to spark a meme coin frenzy with $LIBRA. On February 14, he posted about the token, claiming it would help fund small businesses and boost the economy. The price of $LIBRA skyrocketed after his endorsement, only to collapse within hours, wiping out millions in investor funds. Accusations of fraud quickly followed, and Milei distanced himself by deleting the post. However, his actions did little to quell the backlash. A judge is now reviewing fraud complaints, and opposition politicians have even raised the possibility of impeachment.
Despite initial hype, nearly all of these political meme coins have followed the same trajectory—rapid price surges followed by steep crashes, leaving investors with heavy losses. These coins quickly gained traction but were mired in ethical concerns, as Trump-affiliated entities controlled a majority of the supply and raked in over USD 100 million in trading fees. Blockchain analysis shows that professional traders, many from China, bought in early and cashed out at the top, dumping their holdings on retail investors. Meanwhile, Trump and his team have made millions in trading fees, raising serious ethical concerns about the legitimacy of these projects.
🔮 What This Means for Crypto?
Given that the majority of these coins have been launched on Solana's blockchain, Solana is bearing the brunt of the downturn. Solana’s price has fallen to USD 160 as from its USD 290 peak last month. This price surge was largely driven by the hype around $TRUMP and the memecoin frenzy.
Moreover, the overall attitude and sentiment in the crypto market has shifted. The flood of political meme coins and their subsequent price declines have eroded trust, leading to capital outflows across altcoins. These incidents have brought the term rug pull back into the spotlight. A rug pull, a crypto scam where developers generate hype, attract investors, and then abruptly withdraw liquidity—causing the token’s value to plummet. The term itself, “pulling the rug out from under someone,” reflects the sudden nature of these scams. Investors may become more selective, favoring assets with stronger fundamentals while being more apprehensive about speculative tokens.
Ultimately, these episodes have shaken up the industry. While the speculative nature of crypto has always been part of its appeal, politicians leveraging market sentiment for their own token is a new development.
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