Trump Meme Coins Surge Ahead of Biden in the Run-Up to the US Presidential Election

These exclusive cryptocurrencies, closely associated with prominent political figures, have seen a significant increase in volume and value as the November U.S. presidential election approaches.

Former U.S. President Donald Trump has taken a commanding lead over President Joe Biden in the realm of political meme coins, a niche cryptocurrency category that has experienced a surge in volume and values as the November presidential election approaches. According to data from CoinGecko, seven out of the top ten political meme coins by market value are linked to Trump, often incorporating his well-known slogans like "Make America Great Again" (MAGA). The most prominent token, trading under the ticker TRUMP, was launched in late August 2023. Its market value soared to $775 million** in June, a substantial increase from its near-zero value at the start of the year. In contrast, the leading token associated with Biden, "JeoBoden," experienced a sharp decline. Launched in March 2023, it peaked at **$648 million shortly after its debut but has since plummeted to $87 million. Forrest Przybysz, a cryptocurrency trader and CEO of Sistine Research, observed that the inherently speculative nature of meme coins is further amplified by the attention cycles they generate. "The more attention a token can hold and maintain, the higher its price will go. Trump is an attention magnet. Therefore, he is the ideal subject for a meme token," Przybysz explained. This dynamic suggests that speculation and interest in Trump-based meme tokens will likely continue to increase as the election draws near.

Broadly, the market for meme coins, which are often inspired by internet jokes and trends, is valued at $46 billion**. While political tokens only constitute a small portion of this, their volatility and speculative nature make them an interesting sub-segment of the **$2.3 trillion cryptocurrency market. Many political tokens have origins that are difficult to trace, sparking concerns about potential "rug pulls," where developers vanish with investors' funds. CoinGecko's data shows that eight of the top ten political tokens were launched between May and June 2023, highlighting the rapid and opportunistic nature of this market.

Yan Liberman, co-founder of crypto research firm Delphi Digital, likened meme coins to nonfungible tokens (NFTs), describing them as collectible items that capitalize on public attention. "But they are not NFTs. They are not these multi-million dollar things. They are something else entirely. They are something that is meant to be traded on these smaller markets," Liberman said. Indeed, trading these tokens presents unique challenges. Most are not listed on major centralized exchanges such as Coinbase or Binance. Instead, they trade on smaller platforms in ether or Solana pairs, with each token typically valued below $100 million and trading for fractions of a cent.

As Biden and Trump prepare for their first public debate, these tokens are representing an interesting barometer of the broader political landscape. With Biden and Trump neck-and-neck in national opinion polls, the upcoming presidential debate is set to be pivotal. On the Polymarket platform, where users place bets with stablecoins on future events, traders currently predict a 59% chance of Trump unseating Biden. The popularity of political tokens appears to be closely tied to the public's interest in political figures. Liberman of Delphi Digital highlighted the role of humor and satire in driving token success. "Funny is certainly an authentic big driving force of which tokens do well," Liberman noted.

While Trump has not officially endorsed any crypto token bearing his name, his vocal opposition to Democratic efforts to regulate the sector has bolstered his appeal among these tokens' supporters. "Trump is seen as the last line of defense against the government cracking down on crypto," Przybysz said. The broader crypto industry is also heavily invested in the upcoming U.S. election, aiming to support candidates who are friendly towards crypto. Recently, investor twins Tyler and Cameron Winklevoss donated $2 million in Bitcoin to support Trump, though the donation was reportedly refunded for exceeding federal limits. Analysts at Bitfinex observe that these political tokens have essentially morphed into speculative assets tied to the election outcomes. As the election date approaches, the performance of Trump and Biden meme tokens will likely continue to reflect the dynamic interplay between political events and market speculation.

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