Memecoins
US Presidential Debate Impacts Political Memecoin Market
As President Joe Biden and former President Donald Trump engaged in a historic televised debate, politically themed memecoins saw price swings.
The market for these tokens, now valued at $1.3 billion according to Coingecko’s PolitiFi category datait fell 7.5% in the last day. Additionally, several memecoins inspired by prominent candidates saw significant drops during the debate.
On Ethereum (ETH), MAGA (TRUMP) is down 6.4% and MAGA Hat (MAGA) is down 10.8% in an hour. Solana (SOL)-based tokens Jeo Boden (BODEN) and Doland Tremp (TREMP) are down 26% and 9.4%, respectively, while Ethereum’s Super Trump (STRUMP) is down 1.8%. Over the past 24 hours, MAGA is down 11.1%, BODEN is down almost 46%, TREMP is down 12.3%, and STRUMP is down 19.4%.
According to The BlockMemepad founder Max Jones suggests that these tokens could serve as informal indicators of popularity for candidates as campaigning intensifies. He noted that their volatility is tied to both political hype and broader market trends.
Traders have been watching the debate for insights into the candidates’ stances on cryptocurrency. Trump has previously criticized Biden’s approach to Bitcoin (BTC) and has advocated for domestic Bitcoin mining.
The Presidential Crypto War
The Bloc reported that Bitfinex analysts consider Trump potentially more favorable to cryptocurrencies, as he promised to be so over and over again. They argue that a Trump victory could lead to a more favorable regulatory environment for cryptocurrencies.
Biden has proven to be a much less crypto-friendly candidate. Earlier this month he vetoed it A The House of Representatives has moved to repeal Securities and Exchange Commission (SEC) Accounting Bulletin 121 (SAB 121).
The move in question was a bipartisan effort that saw a dozen Democrats align with a majority of Republicans to support the resolution, easily passing the simple majority needed for passage. Enacted in 2022, SAB 121 required firms holding customers’ cryptocurrencies to record them on their balance sheets, potentially with significant capital implications for banks working with crypto customers.
Since then, Biden has adopted a more pro-crypto stance. Biden’s campaign Greater engagement with the crypto community It started after Trump began to fight for the crypto vote. Earlier this month, news broke that Biden’s campaign team was in talks with major cryptocurrency players to potentially accepting cryptocurrency donations via CoinbaseCommerce.