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The rise of meme coins and crypto hype isn’t just speculation—it’s market manipulation at the highest level. In this episode, we unpack Donald Trump’s endorsement of crypto, the fallout for everyday investors, and the real risks behind political interference in financial markets.
When Influence Becomes Market Manipulation
Trump’s recent crypto endorsement, including his proposal for a strategic Bitcoin reserve, sent shockwaves through the market. The value of Bitcoin spiked over 60%, surging from $70,000 to $111,000. But behind the hype lies a deeper issue—market manipulation. Imagine a local equivalent: if a New Zealand leader like Christopher Luxon released their own coin and promoted it publicly, the move would be widely condemned. So why is this behaviour tolerated at the top level in the US?
Meme coins tied to both Donald and Melania Trump have appeared, raising further questions about transparency and regulation. When a public figure with enormous influence pumps a market they may be invested in, the line between promotion and manipulation gets dangerously thin.
Crypto Is No Longer Fringe-But Should It Be?
As Trump’s actions blur financial ethics, crypto is being legitimised in mainstream politics. But legitimisation doesn’t mean stability. Despite its growing profile, the market remains highly speculative. As one host put it, “It’s fancy gambling.” Without tangible backing or underlying value, meme coins and market-led pumps offer little more than short-term hype.
The bigger concern? Average investors being caught in the rush. These sudden announcements ignite FOMO—fear of missing out—encouraging people to pour money in once the price has already soared. Often, by the time the average Kiwi jumps in, it’s too late. They’re left “holding the bag” while early adopters cash out.
Should Kiwis Buy In?
It’s tempting. One listener even mentioned someone selling their house to invest in Solana. But there’s a crucial difference between long-term crypto investors and those chasing a quick win after a celebrity endorsement. Timing, strategy, and risk management are everything.
At Lighthouse, we’re not anti-crypto. If you’re passionate, educated, and ready for the volatility—go for it. But don’t build your financial future off one headline or viral tweet. Investing should be intentional, not impulsive.
Endorsements from politicians can create artificial spikes, but rarely reflect long-term value.
FOMO-driven investing often leads to poor timing and losses, especially for retail investors.
Meme coins offer hype, not fundamentals—be clear on the difference between speculation and strategy.
Avoid making big financial moves (like borrowing against your home) based on headlines or social media noise.
Next Steps:
If you’d like to learn more, check out these other episodes below.
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Disclaimer:
The information in this article is general information only, is provided free of charge and does not constitute professional advice. We try to keep the information up to date. However, to the fullest extent permitted by law, we disclaim all warranties, express or implied, in relation to this article – including (without limitation) warranties as to accuracy, completeness and fitness for any particular purpose. Please seek independent advice before acting on any information in this article.
