Markets
It’s been a crazy week for political meme coins
“Jeo Boden” is now 98.2% below its all-time high three months ago, while “Kamala Horris” is up 3,875% since May. Some political meme coins have market caps in the millions.
As if the Encrypt The markets weren’t crazy enough, another surreal trend has gained huge traction in the last few months: meme coins based on WE political candidates.
They are often accompanied by surreal, cartoon-style avatars of the person in question… and tend to purposely misspell their name.
Following the seismic events of the last few days, with Kamala Harris earning enough support to secure the Democratic nomination after Joe Biden exempted the race, these digital assets have been even more volatile than usual.
People like Kamala Horris (FUCK), “Jeo Biden” and “Donald Tremp” are rapidly changing value as opportunistic traders try to navigate the cryptocurrency landscape and figure out what’s next.
KAMA, a SolanaThe Bitcoin-based memecoin, inspired by the current vice president, was initially launched on May 30 and was valued at just $0.0006 at the time.
KAMA Maximum Price Chart, May 30 – July 27, 2024 | Source: CoinGecko
Fast forward to today, and growth has accelerated by an incredible 3,875%, surpassing the $0.02 mark with a fully diluted market valuation of $25.4 million.
This reflects Harris’s growing momentum as she prepares to take on Trump in the November race. According to her team, $100 million has been raised donated to Harris’ campaign since its launch, with a record $81 million in first-day inflows alone. Meanwhile, prediction markets are showing that his chances of winning this fall continue to increase with each passing day.
As you might expect, given his cryptocurrency friendly positionThe most valuable coins in the “PoliFi” meme coin movement are all related to trump —and often include riffs on his longtime slogan “Make America Great Again.”
Best Political Meme Coins | Source: CoinMarketCap
But many of these Republican-focused coins have taken a beating recently. The largest token of all, TRUMP, still has a market cap of $279 million but has lost 20.6% of its value in a week.
A thought also to those who held back Jeo Boden. EARTH is now languishing at $0.01171 after plummeting more than 50% in the past seven days, with most of those losses coming after Sunday’s sudden announcement. This meme coin set a new all-time high of $1.07 in April, but is now down more than 98%. As President Biden exits the political spotlight when his single presidential term ends in January, this asset is unlikely to recover.
It’s numbers like these that show the sheer unpredictability and brutality of gaining visibility through political meme coins. Not only can it be difficult to monetize profits due to the low liquid assetsBut bearish declines can be both rapid and brutal.
BODEN 1 month price chart | Source: CoinGecko
A dark trend
Beyond betting on runners and cyclists in the presidential race and following their fortunes in the news cycle, there’s another troubling trend: tokens being created in the wake of misinformation circulating online.
Earlier this week, unfounded rumors about Joe Biden’s death were circulating, and some of the accounts sharing these falsehoods received tens of thousands of reposts on X.
This has had a direct impact on memecoins launched via sites like Pump.fun, with BIDEAD and BIDONE hitting the market. One particularly vulgar digital asset has an avatar that appears to feature Biden’s skeleton.
What will happen now?
You don’t have to be a world-renowned cryptocurrency analyst to deduce that the value of Biden-related memecoins will continue to decline.
But it will be interesting to see what happens to the likes of MAGA and TRUMP with Donald Trump’s upcoming appearance at Bitcoin 2024 in Tennessee, scheduled for today.
Bullish overtures about the future of the Nashville cryptocurrency market could give some of these tokens a second life.
Alternatively, it could end up being more of a “sell the fact” scenario, with interest in these tokens waning as soon as they step off the stage.
There are still three and a half months to go until the vote in the United States, and the swing in opinion on political meme currencies shows no sign of abating.
And there’s no doubt that new tokens will continue to emerge in response to campaign developments, such as the Democratic National Convention in August, a potential Harris-Trump debate on television, and announcements about Harris’s pick for vice president.