Ethereum co-founder Vitalik Buterin has issued a warning about political meme coins like TRUMP, criticizing their role in enabling scams , political corruption , and misuse within the crypto industry. In a detailed social media post, Buterin expressed concern about the growing influence of these coins, which he claims have crossed ethical boundaries. Buterin pointed out that crypto’s increased institutional acceptance has allowed harmful actors to exploit the system. He specifically targeted political meme coins, stating that they are no longer harmless sources of entertainment but tools for large-scale political bribery. He warned about their potential use by foreign entities to influence politics and manipulate financial systems. The TRUMP coin, in particular, has drawn Buterin’s ire. He highlighted that almost 94% of its tokens are held by just 40 wallets, raising concerns about centralization and transparency. According to Buterin, scammers have already stolen nearly $1 billion by capitalizing on the hype surrounding TRUMP and MELANIA meme coins. The fact that U.S. presidents are generally prohibited from engaging in private business while in office makes this development especially controversial. Buterin also criticized former SEC Chair Gary Gensler for leaving regulatory loopholes that bad actors have exploited. Gensler’s differentiation between governance tokens and securities, according to Buterin, opened the door for widespread abuse. While Gensler faced backlash from the crypto industry for his regulatory crackdowns, Buterin argued that his actions ultimately failed to close significant gaps in existing laws. Reflecting on the broader crypto landscape, Buterin stated that the industry’s response to regulatory challenges—a mix of partial compliance and rebellion—contributed to the rise of problematic tokens like TRUMP. Despite this, he expressed optimism about the future of crypto and suggested a proactive approach to addressing these issues. “There is an opportunity to develop capital allocation mechanisms that align with community goals while upholding values like privacy, security, and transparency,” Buterin said. He called for the DeFi community to embrace long-term thinking, return to ethical fundraising, and prioritize education to counteract destructive trends. Buterin proposed a “techno-optimist” or “defensive acceleration” philosophy to guide the industry forward. He urged the crypto community to focus on building sustainable wealth and protecting the integrity of the space. In his vision, the future of crypto lies in creating systems that balance innovation with accountability and ethical standards. The Ethereum co-founder concluded by emphasizing the need for collective action. He believes the crypto industry must proactively defend itself from harmful market practices while educating newcomers about the importance of responsible participation.
