Vitalik Buterin Warns Against the Overreach of Memecoins in Politics

The co-founder of Ethereum, Vitalik Buterin, is concerned about the impact of “political memecoins” like TRUMP. He warns against their potential to fuel political corruption, especially during presidential campaigns.

Vitalik Buterin’s Alarm on “Political Memecoins”

On January 23, 2025, Vitalik Buterin expressed his concerns on social media X regarding the rise of “political tokens”. The founder of Ethereum stated he was alarmed by the general approval of the idea that “anyone can create tokens for anything, at any scale”.

Without explicitly mentioning the TRUMP token, Buterin described these initiatives as a “fleeting and superficial entertainment”, far from generating real wealth creation for their users. He also highlighted their potential danger in facilitating “unlimited political corruption”, particularly by foreign actors.

“It is now time to recognize that large-scale cryptos are crossing a new line. They are no longer just sources of entertainment whose harms are confined to the mistakes of willing participants: they are becoming tools of unlimited political corruption, including from foreign nation-states“, he stated.

These statements extend the warnings made by Buterin in the past. In July 2024, he already alerted, in a blog post, about the dangers of blindly following politicians claiming to be “Pro-crypto”.

Concerns Shared Up to Congress

Vitalik Buterin’s concerns resonate particularly in the current context, where the TRUMP token is sparking heated controversies in Washington. The organization Citizens for Responsibility and Ethics is considering legal actions, citing potential violations of the constitutional clause on foreign emoluments.

Senator Elizabeth Warren, known for her fierce opposition to Bitcoin, has also taken up the issue, calling on federal regulators to closely examine these political memecoins before February 4. She warns that 80% of TRUMP tokens are controlled by the Trump Organization and its subsidiaries, thus exposing small investors to significant risks.

Buterin’s critiques raise fundamental questions about the role of cryptos in politics. While they can be a source of innovation, their instrumentalization for personal or political purposes threatens the credibility of the sector. In a context where regulation is slow to clarify, it becomes urgent to define a clear limit between innovation and abuse.

In summary, the emergence of memecoins like TRUMP illustrates the gradual erasure of the boundary between technology and politics. The recently formed SEC team, under the leadership of Hester Peirce, will need to address these challenges by developing a clear regulatory framework aimed at protecting investors and preserving the integrity of the crypto sector.