Memecoins
How Investors in Biden-Themed Memecoins Lost Money Over Trump’s Guilty Verdict – DL News
- Trump-themed memecoins have soared following the former president’s guilty verdict.
- Political memecoins are poised to play a huge role in Solana’s rally.
Donald Trump’s guilty verdict sent the $65 billion memecoin market into shock, launching tokens linked to him and President Joe Biden on a roller-coaster ride of volatility.
After a 12-person jury found Trump guilty of all 34 crimes in Thursday’s secret trial, the largest Biden-linked memecoin plummeted.
According to CoinGecko, Jeo Boden, a buzzy Solana-based memecoin worth nearly $200 million, lost 7%.
Investors who backed Trump-themed coins fared better MAGA – a reference to Trump’s campaign slogan “Make America Great Again” – and Doland Tremp in the same period they increased by 13% and 11% respectively.
MAGA and Doland Tremp have total market values of $670 million and $112 million.
The day’s volatility wasn’t without its quirks either. Super Trump appears to be an outlier after falling about 20% and is being called an anti-Biden memecoin Joe Biden is dead rose 102% on the day.
The price movements highlight two growing trends: the continued memecoin frenzy and the growing politicization of cryptocurrencies.
Memecoin Frenzy
Joke currencies are big business.
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They generated over $6.5 billion in trades in the last 24 hours alone and a total market value of $65.5 billion.
The sector is criticized for being purely speculative – complaints that echo the skepticism of critics of cryptocurrencies in general.
Even so, memecoins, named after presidents or celebrities, dominate among retail cryptocurrency investors for their low cost and enticing potential for huge gains.
“Memecoins seem to be one of the last remaining opportunities in the cryptocurrency industry for a normal person to go from zero to respectable [net worth] in a short period of time,” Jordan Fish, a crypto influencer better known as Cobie, he wrote on X.
Considering how illiquid many memecoins are, they are just as likely to collapse to zero any day now.
Cryptocurrencies in politics
However, coins linked to political jokes are playing a major role in the frenzy.
Ryan McMillin, chief investment officer of cryptocurrency fund manager Merkle Tree Capital, recently said this DL News he expects the niche to catapult Solana – the blockchain on which many memecoins are traded – into something new $400 record peaks in the coming months.
The attention on memecoins comes as cryptocurrencies become increasingly politicized ahead of the November elections.
Recently, the House of Representatives voted in favor of a broad cryptocurrency bill known as the FIT law21which, if passed in the Senate, would clarify which agencies are responsible for regulating which types of cryptocurrencies.
In parallel, the Securities and Exchange Commission approved Ethereum spot exchange-traded funds.
Trump and Biden have both seized the momentum.
In early May, Trump hugged the industry at its strongest during an event at Mar-a-Lago.
“If you are in favor of cryptocurrencies you would be better off voting for Trump,” he said She saidadding that his campaign will begin accepting cryptocurrency donations.
The comments highlighted an evolution in his position. He famously fired Bitcoin as “a scam against the dollar” in 2021.
In comparison, Biden has adopted a more anti-crypto stance, having threatened to do so veto a pro-cryptocurrency bill that would repeal a controversial SEC policy and increase Bitcoin miners’ fees.
Of course, according to a recent poll, many in the crypto community prefer Trump to Biden, 45% to 43%. survey by the investment company Paradigm.
Ryan Selkis, CEO of crypto market intelligence firm Messari and an avid Trump supporter, paints a second Biden term as a future that involves mass seizures of cryptocurrencies.
Eric Johansson is the news editor of DL News. Did you get tipped? Send him an email at eric@dlnews.com.