Vitalik Buterin’s Warning on Political Memecoins Becomes Reality Amid LIBRA Scandal

• Vitalik Buterin’s concerns about political memecoins being used for bribery have been validated within a month of his warning.
• The LIBRA scandal exposed how a political coin was leveraged for influence, aligning with Buterin’s prophecy.
• Most political memecoins have plummeted more than 80% since launch, underscoring their volatility and risks.

Amid the unfolding LIBRA scandal, a resurfaced warning from Ethereum co-founder Vitalik Buterin has taken on new relevance.

In a January X post , Buterin cautioned against politicians launching or endorsing memecoins, citing their potential as tools for bribery and political manipulation.

A month after Buterin’s post, his concerns proved prophetic.

Buterin’s Prophecy on Political Coins Comes True

“The risk of politician coins comes from the fact that they are such a perfect bribery vehicle,” Buterin warned. “This is all risky to democracy. The economic arguments for why markets are so great for ‘regular’ goods and services do not extend to ‘markets for political influence.”

The LIBRA fallout revealed that Hayden Davis, the key figure behind the scam, had allegedly sent money to Argentine President Javier Milei’s sister months before the memecoin controversy erupted. Davis boasted about his influence over Milei, claiming, “I control that n****.”

Despite the scandal, Milei posted about the LIBRA token twice —even after the rug pull was exposed. When pressed for a response, he refused to apologize and infamously remarked: “No crying in the casino.”

Political Memecoins Spark Concern in the U.S.

The LIBRA scandal is not an isolated case. In the U.S., the launch of the TRUMP memecoin in late 2023 raised similar concerns, with critics warning that foreign entities could exploit political tokens to influence elections.

Senator Elizabeth Warren cautioned that such tokens could create avenues for corruption at the highest levels of government.

The trend quickly escalated. Following Trump’s memecoin, former First Lady Melania Trump launched her own token—only for it to collapse in value, mirroring the fate of its predecessor.

The movement even extended beyond U.S. borders, with the president of the Central African Republic launching a national memecoin.

A Net Negative

While memecoins are often seen as speculative assets with a high-risk, high-reward appeal, the rise of political tokens has brought unintended consequences.

Most political memecoins have followed the same pattern—explosive initial hype, followed by an inevitable collapse.

TRUMP, the coin that started the political memecoin wave, has plunged more than 85% from its all-time high .

Melania Trump’s token has suffered a similar fate, dropping over 80%.

The LIBRA debacle further exposed how these tokens can be used as manipulative financial instruments rather than genuine political endorsements.

Perhaps most concerning is how scammers have capitalized on this trend. The political memecoin boom has given rise to countless country-themed tokens, many of which are created and rug-pulled within 24 hours of launch.

Buterin’s warning has played out in real time. As the dust settles on the LIBRA scandal, it raises pressing questions about the ethics and consequences of intertwining politics with memecoin speculation.