The virtual currency in Prime Minister Sanae Takaichi’s name briefly soared to a market value of about $27.7 million, but plummeted after Takaichi publicly denied any connection to the token.
In a statement published in X, Takaichi said she had no knowledge of the “Sanae token,” adding that neither she nor her office had given any approval regarding it. He said this explanation was made to prevent misunderstandings among the public.
“There seems to be a lot of misconceptions about this token because of the name, but I have no knowledge of this token and my office has not been informed as to what this token means,” she wrote.
According to crypto data tracker Gmgn, the Solana-based crypto token briefly reached a market cap of $27.7 million on February 25th. Following Takaichi’s denial, its price and market capitalization plummeted. At the time of writing, the token’s market capitalization was approximately $7 million.
Financial Services Agency considers investigating tokens
Japan’s Financial Services Agency (FSA) is reportedly considering investigating the parties involved in the issuance of the token.
Kyodo News on Tuesday said regulators are considering investigating related businesses to confirm the relevant facts. The Financial Services Agency has not released a formal investigation.
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The report said the companies involved may not have the necessary registration to issue crypto assets in Japan.
Based on Japan’s Payment Services Act, cryptocurrency exchanges must register with the Financial Services Agency. Operating without proper registration can subject you to regulatory scrutiny, especially if it raises consumer protection concerns.
Political name tokens are subject to intense scrutiny worldwide
During the recent speculative market cycle, tokens referencing celebrities have surfaced in multiple jurisdictions.
In the United States, tokens referencing President Donald Trump regularly gain attention before he unveils official tokens.
On January 17, 2025, the Trump campaign announced the launch of Trump’s official meme coin. The token rose to around $73 at one point before plummeting. At the time of writing, it is trading around $3.40, about 95% below its peak.
In Argentina, the Solana-based Libra token sparked an international scandal in February 2025 after President Javier Millay promoted it on X soon after its launch.
On February 18, 2025, the token soared above $4.50 within minutes before crashing below $0.20 within hours, raising suspicions of a pump-and-dump scheme.
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