The Presidential Bubble: How Meme Coins Became the Most Profitable "Value Extraction Machine"

When two national leaders launched their own digital tokens within weeks, the cryptocurrency market experienced its most surreal moment. What started as social media jokes evolved into a financial conspiracy that left hundreds of thousands of investors ruined, while insiders made astronomical figures.

The weekend that changed everything: from speculation to mass fraud

In mid-January 2025, while the capital prepared for a high-level political ceremony, a parallel event was taking shape in a historic auditorium. The atmosphere was boiling with crypto lobbyists, social media influencers, and investors seeking access to the new power. Rumors circulated among the crowd about an important surprise.

Then came the official announcement via a social network: a new token called “TRUMP” had been launched. Within hours, its price jumped from virtually zero to $74. Days later, his wife launched “MELANIA,” which reached $13. The weekend was the most active in the history of these speculative assets.

But what rose quickly fell even faster. Within 72 hours, both tokens lost more than 90% of their value. According to blockchain research firms, the team behind these launches may have extracted over $350 million as the price plummeted. Thousands of ordinary investors lost their savings.

Reverse economic logic: why this shouldn’t work (but it does)

Meme coins challenge all traditional financial logic. Unlike stocks or bonds, these tokens have no cash flow, projected profits, or real utility. Their only value comes from the “collective belief” that someone else will pay a higher price tomorrow.

“According to classical economic principles, this should never work,” admitted a crypto executive in interviews with specialized media. “But the reality is that it generates real money, a lot of money.”

The phenomenon began as satire. In 2013, two programmers created a currency based on a popular internet meme to mock the proliferation of cryptocurrencies. It was called “Dogecoin,” and, to everyone’s surprise, investors bought it massively. Decades later, the strategy of monetizing internet culture has become scientific.

The invisible ecosystem: platforms, operators, and the presidential “pump and dump”

How exactly did the presidential pair and their associates earn hundreds of millions in hours? Clues point to a closed circle of operators specialized in orchestrating these events.

According to blockchain investigations, someone bought $1.1 million worth of the presidential token in seconds—clearly with insider information—and sold it in three days, earning $100 million. Another buyer purchased before the public launch and made $2.4 million. Transaction analysis suggests they belonged to the same operator or team.

An Argentine crypto industry executive was identified as part of the organizing circle. Days after helping launch a failed token in his country, he publicly admitted his involvement in other presidential launches. “TRUMP gave me unprecedented power and great risk,” he wrote in private messages, boasting about “astronomical” gains.

This operator worked under clear instructions: “Sell everything possible, even if the price drops to zero.” At one point, he admitted to earning $100 million, then claimed he was only “holding funds”—money that, according to reports, he has yet to return.

The platform connection: “technical support” and diffuse responsibility

Which platforms allowed these launches? According to investigators, a decentralized exchange provided “technical support” for the event. Its co-founder, a Singaporean entrepreneur operating under a pseudonym on social media, has built an empire around meme coin speculation.

This entrepreneur cultivates an ambiguous philosophy: he claims his platform is neutral and that his role is purely technical. “If the Trump team requested help, we only provided infrastructure,” he argued in interviews. However, blockchain investigators found evidence that his platform was central in coordinating multiple presidential launches and those of other national leaders.

The executive admitted that his company generated “90% of its annual revenue of $134 million” from these speculative tokens, with higher commissions than other assets. Clearly, the meme coin business is profitable for intermediary platforms.

The documented collapse: from 5 trillion to almost nothing

At its peak, the combined value of both tokens exceeded 5 trillion in paper value. The biggest buyers were invited to exclusive dinners, where they supposedly could influence policies. A Chinese crypto magnate bought $15 million worth of the presidential token.

Months later, the presidential token fell 92% from its maximum. The other token lost 99%, dropping to $0.11—practically worthless.

Blockchain investigators tracked wallet addresses and found suspicious patterns: classic insider trading operations, but without any regulator acting. “On Wall Street, this would be securities fraud,” explained a crypto analyst. “In this market, crime seems to be legal.”

The official justification and regulatory gap

When questioned about the event, the president declared he knew nothing: “Apart from knowing I launched it, I don’t know anything else. I just heard it was a success.” Then he asked reporters how much money he had made.

The official spokesperson denied any conflict of interest, arguing that the event occurred “in the private time” of officials. “Suggesting that the president profits from his position is absurd,” she stated.

However, cryptocurrency regulators have remained silent. A U.S. supervisory authority announced it would not specifically regulate these tokens, only vaguely warning that “other anti-fraud laws could apply.” No prosecutor has initiated investigations.

The future of the bubble: end of the fever or just the beginning?

The fever for these speculative tokens has begun to fade. Transaction volume dropped 92% between January and November. Investors, “caught” repeatedly, are exhausting their money.

However, the original operators have diversified. Some have entered prediction markets, where they bet on real events. Others launch new platforms and tokens. The Singaporean entrepreneur launched his own cryptocurrency with an initial capitalization of $300 million.

“This is the ‘ultimate value extraction casino’,” say lawyers who have sued platforms for fraud. As long as intermediaries remain silent about how these schemes operate, it will be impossible to determine exactly how they made so much money so quickly.

In the crypto sphere, regulatory oversight seems distant. And as long as this continues, the reverse logic of meme coins will keep attracting investors with promises of quick gains that never materialize for most.