Investment in digital assets: from Trump’s memecoin to Milei’s “Scam” libra
The investment in digital assets continues to gain relevance in the markets, and the trend shows no signs of slowing down. Their purely digital nature, combined with the volatility and risks associated with their valuation, has so far been a source of skepticism for both investors and regulators. These stakeholders cautiously assess each step toward a unified regulatory framework (still nonexistent) that aims to create a more balanced market environment.
However, this prudence contrasts with the euphoric reaction of some political leaders, such as Donald Trump’s launch of his own memecoin, $Trump, or the $LIBRA phenomenon driven by Javier Milei, which has dominated headlines in recent weeks, even leading to accusations of fraud against the Argentine president.
Cryptocurrencies: a market in evolution
What began as a niche and anecdotal presence has become an undeniable reality: digital assets are here to stay. Many investors seek high returns outside of traditional investments, hoping for a supposed decoupling from market inefficiencies.
Specifically, high accumulated returns have been a key driver of this digital asset boom. In 2024, cryptocurrencies posted gains that surpassed even the stock market growth of tech giants, with Bitcoin leading the way (+121%). They also outperformed gold, which, in the early months of the year, has been the most sought-after asset due to its safe-haven characteristics.
However, 2025 has not started with the same momentum. The uncertain macroeconomic context, particularly in the U.S., with weak inflation and PMI data, coupled with growing skepticism about these assets due to their sharp and unpredictable fluctuations, has cooled the enthusiasm that seemed to dominate digital markets. In January, the combined trading volume of crypto assets dropped by 20.2% to $9.03 million, according to CoinDesk Data, bringing Bitcoin below $80,000 and marking its worst month since 2022.
Nevertheless, the crypto market is expected to stabilize with sustained growth this year. On one hand, ongoing innovation will enhance the security and structure of these assets; given that this is still a relatively new and constantly evolving market, there is ample room for growth. On the other hand, greater investor interest will likely drive more capital into these markets.
From Trump’s memecoin to Bukele’s crypto-state to Milei’s “scam”
Donald Trump’s return to power in the United States has significantly influenced how nations will institutionalize digital assets and, specifically, cryptocurrencies. In 2024, the SEC authorized the launch of a Bitcoin ETF, and during his inauguration, the U.S. president spoke about “strengthening American leadership in digital financial technology” to support the responsible growth and use of digital assets, blockchain technology, and related innovations. As if that weren’t enough, he also launched $Trump, his own memecoin (a cryptocurrency based on viral phenomena), which soared to $15 billion before later losing much of its value. Beyond the anecdote, virality, and social impact of this launch, it underscores the growing global relevance of digital assets, often intertwined with geopolitical interests.
Among the notable episodes linking politics and digital assets, we cannot forget El Salvador’s adoption of Bitcoin as legal tender, though its long-term viability remains uncertain. The most recent chapter in this saga was Javier Milei’s misstep with the launch of the cryptocurrency $LIBRA. The Argentine president’s promotion of this asset attracted a large number of investors, who lost their money within minutes as the valuation collapsed due to the lack of backing from a reliable entity.
Both cases highlight the need for a strong regulatory framework before taking major steps in the cryptocurrency space. Both Bukele, president of El Salvador, and Javier Milei have championed cryptocurrency use as a means of economic freedom and private investment promotion.
Beyond profitability: volatility and high risk
If these episodes serve any purpose, it is to illustrate the extreme volatility and unpredictability of these investments. This is due to their highly speculative nature, making them highly sensitive to megatrends, socio-political movements, and other external factors. In this context, regulators play a crucial role in establishing a secure regulatory framework that protects investors and ensures the proper functioning of digital assets, encouraging profitable yet safe investments. The introduction of MiCA regulations, for example, provides investors with greater security by emphasizing clear and transparent information about these assets and their associated risks.
However, market fluctuations remain evident and highly responsive to political realities, as demonstrated by Bitcoin’s recent (but inconsistent) surge following Donald Trump’s new measures to include cryptocurrencies in the U.S. strategic reserve.
It remains to be seen how this sector evolves—its inherent volatility has traditionally deterred institutional investors while attracting retail investors looking for high returns. Will the crypto euphoria fade away?