Donald Trump Takes Commanding Lead Over Joe Biden - in the World of Political Meme Coins

Crypto tokens linked to former President Trump have leapt in volume and value in recent weeks as the November U.S. presidential election heaves into view

Crypto tokens linked to former President Donald Trump have surged in volume and value ahead of the U.S. presidential election, with seven of the top 10 political meme coins by market value being linked to Trump, according to crypto platform CoinGecko.

The tokens, which are largely unregulated and highly speculative, have soared in price this year, with some jumping to billions of dollars in a matter of days.

The largest token linked to a political figure, MAGA, trades under a ticker called TRUMP on exchanges and was launched in late August 2023. Its market value has surged to as high as $775 million in June from nearly nothing at the start of the year.

In comparison, a token called Jeo Boden, which is linked to President Joe Biden, jumped to as much as $648 million days after its launch before gradually sliding to $87 million, CoinGecko data showed.

The tokens have soared in popularity as the U.S. presidential election heaves into view and Trump and Biden prepare for their first public debate on Thursday.

The tokens are a fraction of the $46 billion market value of meme coins - hyper-speculative, volatile and risky cryptocurrencies often driven by internet jokes - which are themselves a niche segment of the broader $2.3 trillion cryptocurrencies, according to Coingecko estimates.

The origins of some of the tokens are obscure and debated on social media by traders wary of a "rug pull", where investors quickly pile on to new tokens, only to find the coin's developers have vanished with the money.

Of the top 10 biggest political tokens, which typically aim to capitalize on the increased attention on political figures ahead of elections, eight were launched between May and June this year, CoinGecko said.

"Meme coins are similar to nonfungible tokens in terms of being a bit of collectors' item. The idea is that you monetize public attention," said Yan Liberman, co-founder at crypto research firm Delphi Digital.

However, trading these tokens is easier said than done. Few, if any, are listed on the biggest centralized exchanges such as Coinbase (COIN.O) or Binance.

Most of the tokens are traded in ether or solana pairs on smaller exchanges, each typically have a market value of below $100 million and trade for fractions of a cent apiece.

Biden and Trump are neck-and-neck in national opinion polls. A presidential debate between the two candidates on Thursday will be a critical event five months before the Nov. 5 vote.

Traders on Polymarket, a crypto site where users place bets with stablecoins on future events, were betting on a 59% chance that Republican challenger Trump would unseat Democratic incumbent Joe Biden.

Political tokens bank on the popularity of political figures to gain traction, enticing retail investors with satirical or humorous names.

"Funny is certainly an authentic big driving force of which tokens do well," said Delphi Digital's Liberman.

Trump hasn't said he endorses or backs any crypto token in his name. However, his slamming of Democrats' attempts to regulate the sector has boosted his popularity among these tokens, Liberman said.

The broader crypto industry is spending tens of millions of dollars ahead of the U.S. election to boost crypto-friendly candidates.

Investor twins Tyler and Cameron Winklevoss donated $2 million in bitcoin to support Trump last week but a report said the donation was refunded as it exceeded the maximum amount allowed under federal law.

"These tokens have turned into speculative assets themselves in terms of the election results," analysts at Bitfinex said in a note on Friday.

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