How the “Politician Coin” Rug Pull Works
A congressperson (or their staff) quietly creates a “satirical” or “grassroots” token, usually tied to a campaign.
The Pump
They joke about this on X (formerly Twitter), which goes viral.
The Dump
Insiders or politician PACs sell, and smart money dumps the top, while the retail still holds the bag.
Real Example
A presidential candidate running in 2024 launched a token called $FREEDUMB, which saw a +1,000% gain before crashing and losing -98% of its value while insiders sold out for $2 million plus.
3 Approaches to Look into Crypto by Politicians
1. The Campaign Fundraising Loophole
This coin promotes my election campaign.
The truth is that they instantly convert any donation to USD, so the token dies.
2. The Anti-Woke Memecoin Grift
Purchase MAGA to take possession of the libs!
Result: Political hype drives token price pump; insiders dump later.
3. The Crypto Education Scam
Claim: “I’m promoting blockchain literacy!”
The truth is, their massive pre-mine profits come from the volatility.
Who’s Doing This? (Names Redacted… For Now)
- A current senator launched a freedom coin back in 2023 and then forgot about it.
- A presidential candidate in 2024 has been linked to this PAC.
- Many congressmen are “joking” about coins before their staff dumps.
SEC’s response? Watch this space! (They won’t do a thing).
How to Spot a Politician Coin Scam
- “Only for fun!” disclaimers (they know it’s a security).
- Has no real utility; just a meme and donation address.
- Insider wallets currently hold over 30% (check on Etherscan).
- A sudden rise in social media (then dumped with radio silence).
Why This Is Worse Than Regular Memecoins
- Politicians have a ready-made audience (million+ followers)
- They have zero legal repercussions (SEC won’t touch them)
- Retail adores them (unlike random crypto influencers)
That’s a new breed of unassailable crypto con men.
How to Avoid Getting Rekt
- Always remember, politicians are grifting activities. Don’t buy coins!
- Look into the deployer wallets. Did they pre-mine a stash?
- Treat every “political meme token” as a rug pull.
- If a lawmaker promotes crypto, they are not your ally.
The Coming Crackdown (Maybe?)
- Media exposes the schemes (late 2024)
- There are no arrests despite growing outrage (politicians protect their own)
- SEC finally acts—against small fish (not the lawmakers)
The rich get richer. Retail gets poorer.
Why This Matters Now
- Prepare for rising election-themed crypto and NFTs
- Without rules, they’ll continue to get away with it
- This could spark a wider backlash against crypto
Don’t be their exit liquidity.
The Bottom Line
Politicians used to insider trade stocks. Now, they pump-and-dump their own tokens.
The game is rigged. Don’t play it.
