Vitalik Buterin, co-founder of Ethereum, has raised concerns about political meme coins like TRUMP, highlighting their potential for scams and political corruption in the crypto space. In a recent social media post, he warned that these coins have evolved from mere entertainment to tools for political bribery and manipulation.
Buterin noted that the rise of institutional acceptance in crypto has allowed malicious actors to exploit the system. He specifically criticized the TRUMP coin, revealing that 94% of its tokens are controlled by just 40 wallets, which raises issues of centralization and transparency. He pointed out that scammers have already taken advantage of the hype around TRUMP and MELANIA meme coins, stealing nearly $1 billion. This situation is particularly troubling given that U.S. presidents cannot engage in private business while in office.
He also criticized former SEC Chair Gary Gensler for leaving regulatory gaps that have been exploited by bad actors. Buterin argued that Gensler’s distinction between governance tokens and securities has led to widespread abuse, despite facing backlash from the crypto community for his regulatory actions.
Buterin reflected on the crypto industry’s mixed response to regulatory challenges, which has contributed to the emergence of problematic tokens like TRUMP. However, he remains optimistic about the future of crypto. He believes there is an opportunity to create capital allocation mechanisms that align with community goals while maintaining privacy, security, and transparency.
He urged the decentralized finance (DeFi) community to adopt long-term thinking, ethical fundraising, and education to combat negative trends. Buterin proposed a “techno-optimist” approach to guide the industry, focusing on sustainable wealth and integrity.
In conclusion, Buterin emphasized the need for collective action within the crypto community. He believes it is essential to defend against harmful practices and educate newcomers on responsible participation in the crypto space.
