Ethereum Founder Vitalik Buterin Says Political Tokens Vulnerable To Manipulation
Date
1/25/2025 2:01:02 AM
(MENAFN- eTrendy Stock)
Ethereum co-founder Vitalik Buterin has argued that launching Political tokens could be a means to carry out bribery.
He shared his opinion during a general discussion on X regarding the direction of the crypto industry under Donald Trump's administration. Buterin stated that the arguments lie between these tokens' short-term and long-term values, comparing it to choosing between chess and hyper-addictive cellphone games.
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Vitalik Buterin: Political Tokens Are High Risks
The Ethereum co-founder noted that there's been a switch to a new order in the last twelve months. Whether they have utility or not, many industry players now embrace the idea of token creation.
However, Buterin suggests having conversations, especially when high-risk investments are involved. He said the basis of such a discussion should be educating investors on the difference between long-term wealth building and fulfillment and sky-high short-term fun.
The blockchain pioneer added that the latter isn't suitable for newbies. Buterin further explained that many political coins cause more harm than they are a source of fun.
He said such coins encourage unlimited political bribery, even from foreign nations.:
Trump-Linked Tokens and Distribution Concerns
Buterin's arguments follow recent distribution concerns surrounding the two meme coins Donald Trump's family launched: Official Trump (TRUMP) and Melania Meme (MELANIA). Analysis by blockchain analytics firm Chainalysis revealed that wallets holding at least $10 million worth of these tokens control 94% of the tokens' supply in circulation.
Addresses holding between $1 million and $10 million worth of these assets control 2.1% of the tokens' supply. Analysts express worries that the heavy concentration of the tokens in a few wallets could cause price instability.
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Despite the distribution concerns surrounding these tokens, popular crypto exchange Binance has listed a perpetual contract tied to MELANIA. Traders can access up to 25x leverage to trade MELANIA/USDT, enabling them to scale their trading activities.
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