Libra Controversy Shakes the Cryptocurrency Sector – Could TRUMP Coin Benefit from the Aftermath?

As the Libra rug-pull controversy shakes the cryptocurrency sector, retailers are pondering whether this could potentially benefit the prices of certain names in the meme coin market, such as the TRUMP coin.

During the weekend, Argentinian President Javier Milei took to X to endorse a cryptocurrency called Libra, which allegedly aimed to raise funds for small businesses and startups in Argentina.

However, shortly after Milei’s tweet, insiders rapidly sold off the token, resulting in a significant loss of its value. Milei promptly removed the coin from his posts.

It remains unclear whether Milei was complicit in the scheme or misled into promoting the coin by unscrupulous project insiders.

Charles Hoskinson, the founder of Cardano, stated in a video broadcast on Sunday that Milei was misinformed by advisors regarding the coin, which may have been presented to him as a beneficial opportunity, possibly in comparison to TRUMP coin.

While the Presidential office has confirmed that Milei was not involved in the cryptocurrency’s development, the opposition in Argentina is calling for his impeachment.

Meanwhile, a federal judge in Argentina is set to investigate the situation, news that caused Argentinian stocks to plummet on Monday.

This story has dominated the crypto headlines this week, and it does not reflect well on the industry, which has struggled to dissociate itself from associations with “crime” and “scams” since its inception.

Could the Fallout Benefit TRUMP Coin?

With meme coins back in the spotlight this week amid the ongoing Libra scandal, could this actually serve as a bullish catalyst for TRUMP coin?

Unlikely. TRUMP coin has already declined over 13% this week, and, currently priced at $16.20, it may soon revisit its recent lows around the $14 mark.

No connections between the creators of TRUMP coin and Libra have yet been revealed. However, links between Libra and MELANIA, the first lady’s meme coin, have been identified.

Bubblemaps recently shared a thread on X providing evidence for this connection.

1/ How $LIBRA was created by the same team behind MELANIA and other short-lived coins
Featuring new on-chain evidence
A thread with Coffeezilla ↓ pic.twitter.com/gNwj97KapF

— Bubblemaps (@bubblemaps) February 17, 2025

Does this imply MELANIA could be a rug pull in waiting? Its chart certainly suggests it has already experienced such a fate, with MELANIA last trading around $1.25, down over 90% from its post-launch peak above $13 per token.

However, association with a meme coin scandal like LIBRA could significantly impact MELANIA’s value moving forward.

There is no on-chain or other evidence to suggest a connection to TRUMP. Nevertheless, that does not mean that “scam” FUD won’t also affect demand for TRUMP in the future.

That said, the TRUMP brand is such a strong entity that most meme coin traders may likely forget about all of this within a few weeks.

All it would take is a few strong days of price movement, and meme coin traders will probably begin to FOMO back into TRUMP coin quite quickly.

Better Alternative to TRUMP Coin – Meme Index (MEMEX)

One significant criticism of TRUMP coin is its tokenomics distribution, which heavily favors early investors, insiders, and Trump himself.

The coin may perform very well in the coming years, but meme coin traders should always consider diversifying their portfolios.

One intriguing new meme coin that should be on their radar is a project called Meme Index (MEMEX).

Unlike typical meme coins that rely solely on hype, Meme Index offers a decentralized fund that aggregates the hottest meme tokens into four volatility-based baskets—from stable giants like Dogecoin to speculative moonshots.

This diversification reduces risk while maximizing potential gains, a rare combination in this volatile market. With over $3.7 million raised in its presale and staking APYs exceeding 600%, early investors are already engaged.

Additionally, MEMEX holders gain governance rights, voting on which tokens make the cut—envision community-driven features with built-in scam protection.

Supported by solid audits and a vibrant social presence, Meme Index is not just another fleeting meme—it represents a strategic move in a $120 billion sector.

Learn More About MEMEX Here

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