Elon Musk’s latest foray into U.S. politics has once again rippled through the crypto market. On July 5, the billionaire entrepreneur announced the official launch of a new political movement, the “America Party,” criticizing what he described as a corrupt “one-party system” in Washington. The Tesla founder blasted Trump’s recently signed $3.3 trillion “Big Beautiful Bill” which he believes is “insane” and “destructive.” 

However, following Elon Musk’s bold move to create the America Party, some crypto enthusiasts capitalized on the hype by creating a memecoin named America Party (AP). Within minutes, the token pumped in value despite having no official links to Elon Musk. But, it went on to crash to zero shortly after. 

AP’s Flash-Fueled Surge Ends in Collapse

Elon Musk previously expressed discontentment with Trump’s “Big Beautiful Bill” which even led to a public spat between the two influential figures. In tandem with his discontentment, Elon Musk took to X to announce the launch of the ‘America Party’ on July 5. 

By a factor of 2 to 1, you want a new political party and you shall have it!

When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy.

Today, the America Party is formed to give you back your freedom. https://t.co/9K8AD04QQN

— Elon Musk (@elonmusk) July 5, 2025

With the party hitting headlines, a new meme coin, America Party (AP), appeared on Pump.fun. The meme coin, though released anonymously, attracted attention across the crypto market. Speculators willing to gamble on the political influence of Elon Musk bought the coin pushing its price. In just 30 minutes, its market cap rose to $18M, based purely on hype and the illusion of Musk’s’ association.

For a moment, some enthusiasts even dubbed it the “Dogecoin of U.S. politics,” referencing Musk’s past influence on meme tokens. However, just as quickly as it rose, the AP memecoin collapsed. Within an hour, the token’s value dropped to zero, leaving late buyers empty-handed.

Analysts believe that initial insiders took advantage of the mania and sold once the demand rose. With lack of any fundamentals, support from Musk or any real roadmap, the token turned into the newest instance of a viral pump-and-dump scheme. 

Politics-based Memecoin Trend Continues

The AP memecoin scenario shows continuation of a crypto trend that started in 2024: the increased minting of meme coins to reflect the real-world dynamics of politics. In Musk’s’ case, his political moves have historically triggered market reactions. From Dogecoin to Grok, and now the AP memecoin. Even though Musk did not mention or acknowledge the coin, the narrative surrounding his July 4 statements was enough to spark a mini memecoin market frenzy.

This pattern has become very common in 2025. Other political-themed tokens like $TRUMP, $BIDEN, and $MELANIA have all experienced short-lived surges linked to specific political moments. However, most of these tokens fade within just a few days. 

Crypto platforms like Pump.fun have made it easier than ever for anyone to launch a coin in minutes, giving rise to increasingly short and volatile speculation cycles. These coins tend not to last past the hype. Traders must remain cautious about these coins as they may lack transparency and long-term viability.