Memecoins referencing U.S. presidential candidates plummeted following the first debate between Biden and Trump.
Debate Ignites Memecoin Fallout
During the debate, neither candidate mentioned Bitcoin or cryptocurrencies. This surprised many in the crypto community. On Polymarket, participants bet $345,000 that crypto would be discussed.
Memecoin Market Reacts
After the debate, PolitiFi memecoins, linked to both candidates, saw significant price drops. These coins have a small market capitalization compared to the overall memecoin market. Coingecko valued this segment at $1.2 billion, just 2.4% of the total market. Only four out of about 40 tokens have a market cap above $100 million.
Decline in Trump-Related Coins
Trump-related coins like Super Trump, MAGA, and Donald Tremp lost 6% to 9%. The MAGA Hat token dropped 9.3% to $0.0003, with a market cap of $125 million. Meanwhile, Jeo Boden (BODEN) fell over 30% to $0.08.
Underlying Trends and Speculation
Many believe that “joke” tokens reflect more than speculative interest. They may signal fundamental trends and positively impact the broader sector. Max Jones, co-founder of Memepad, told The Block that PolitiFi memecoins’ price fluctuations are directly tied to political hype.
Jones suggested that PolitiFi memecoins, based on politicians’ images and ideas, could gauge their popularity among voters before the U.S. presidential election. “It’s unclear which of these memecoins will endure, but they currently serve as alternative indicators of support for Trump or Biden,” Jones said.
Attention Cycles and Memecoin Popularity
Forrest Przibish, a crypto trader and CEO of Sistine Research, noted to Reuters that memecoins’ popularity is driven by human attention cycles, not just speculation. The more attention these tokens attract and retain, the higher their price.
Crypto as an Election Issue
Cryptocurrencies have become a crucial topic in the U.S. presidential race. Trump urges voters who “like crypto in any form” to support him. He promises to end Biden’s “war on crypto.”
“We will ensure the future of cryptocurrency and Bitcoin is created in America,” Trump frequently asserts. In meetings with major U.S. mining companies CleanSpark and Riot Platforms, he emphasized strengthening the U.S. role in Bitcoin mining.
Significant Bitcoin Donation
On June 21, Trump received $2 million in Bitcoin from the Winklevoss twins, owners of Gemini. They intend to “end Biden’s war on crypto” by supporting Trump.
Shifts in Crypto Policy
Trump’s support for the crypto sector has prompted shifts within the industry. Democrats have softened their stance on digital assets due to the heated campaign, GSR analysts reported. Some Biden advisors warn that without strong crypto positions, he risks losing the election, sources told The Block.
