Several high-profile scams have rocked the crypto market, with meme coin rug pulls making news worldwide. From Argentina’s $LIBRA mess to the Trump administration’s possible support of speculative tokens like $TRUMP and $MELANIA, it’s getting harder to tell the difference between digital assets and fraud. Problems with these scams don’t just hurt small investors; they also make people less likely to trust Bitcoin, the only digital currency that really seems like money.
The Disaster with the Lira in Argentina
In February, Argentina’s new president, Javier Milei, who calls himself a libertarian and supports Bitcoin, was at the center of a crypto crisis. By advertising the $LIBRA token as a private plan for economic recovery, Milei caused a considerable increase in value right away, going from $0 to almost $5. However, within hours, $LIBRA fell by more than 80%, which was terrible for investors. In a standard “rug pull” scheme, analysts found insider wallets that dumped tokens worth more than $107 million. Strong reactions followed, with people against Milei calling for her removal from office and a massive drop in trust in digital assets.
Scandal with Trump’s $TRUMP Tokens
When President Trump got involved in the crypto market in the US, it caused chaos. The value of the official $TRUMP joke coin shot up to $14.5 billion just a few days after his administration released it. But the token’s value dropped sharply when the excitement died down, leaving small players broke. Reports said that big holders each got more than $10 million, and the people who made the project made between $86 and $100 million in trading fees.
Changing value of $MELANIA coin
First Lady Melania Trump launched the $MELANIA token the day before her husband’s inauguration, just like her husband did. The price of meme coins increased 24,000% in just a few hours as investors hoped for a second chance at getting rich. However, they fell by 80% over the weekend.
Conclusion
It’s not like these risky “pump and dump” plans; Bitcoin is still the only decentralized, unchangeable digital currency people use in the real world. However, reckless support for crypto could hurt its image. The wrong rules could stop real progress if lawmakers can’t tell the difference between Bitcoin and speculative scams.
