Political Meme Coins Based on U.S. Candidates Are the Latest Surreal Trend to Hit the Crypto Markets

“Jeo Boden” is now 98.2% off an all-time high set three months ago, while “Kamala Horris” has rallied by 3,875% since May.

A new and bizarre trend has emerged within the cryptocurrency market, with meme coins being created and named after U.S. political candidates. These coins often feature amusing cartoon avatars of the candidates and frequently include deliberate misspellings of their names.

Following recent events, such as Kamala Harris gaining enough support to secure the Democratic nomination after Joe Biden withdrew from the race, these digital assets have experienced heightened volatility.

As candidates navigate the political landscape and attempt to predict future events, opportunistic traders are closely monitoring the candidates' performance and pivoting quickly to capitalize on any shifts in the political climate.

One Solana-based memecoin, inspired by the current Vice President, is KAMA. It was initially launched on May 30 and had a value of $0.0006 at the time.

Now, the coin has surged by an incredible 3,875%, breaking the $0.02 barrier with a fully diluted market valuation of $25.4 million.

This surge aligns with Harris's growing momentum as she prepares to face Trump in the November race. According to her team, $100 million has been donated to the Harris campaign since its launch, with a record-breaking $81 million coming in on the first day alone. Meanwhile, prediction markets indicate that her chances of victory in the fall are continuously increasing.

As might be expected, given his positive stance towards cryptocurrencies, the most valuable coins in the "PoliFi" meme coin movement all relate to Trump — and often include riffs on his long-running "Make America Great Again" slogan.

However, many of these Republican-centered coins have taken a significant beating recently. The biggest token of all, TRUMP, still has a market cap of $279 million but has shed 20.6% of its value in a week.

Consider those who held Jeo Boden, too. BODEN is now languishing at $0.01171 after plunging more than 50% over the past seven days — with most of those losses occurring after Sunday’s sudden announcement. This meme coin set a new all-time high of $1.07 back in April, but it’s now down by over 98%. Given that President Biden will bow out of the political limelight when his one and only presidential term ends in January, this is an asset unlikely to recover.

It’s figures like these that show the sheer unpredictability and brutality of gaining exposure to political meme coins. Not only can it be difficult to cash in on profits because of low liquidity, but bearish downturns can be both swift and brutal.

A worrying trend: tokens emerging from online misinformation

Beyond betting on the candidates in the presidential race and following their fortunes in the news cycle, there’s another worrying trend: tokens that are being established in the wake of misinformation that’s circulating online.

Earlier this week, unsubstantiated rumors were swirling that Joe Biden had died, with some of the accounts that shared these falsehoods attracting tens of thousands of reposts on X.

This has had a direct impact on the memecoins being launched through sites like Pump.fun — with the likes of BIDEAD and BIDONE hitting the market. One particularly crass digital asset has an avatar that appears to show Biden’s skeleton.

It doesn’t take a world-class crypto trading analyst to deduce that the value of Biden-related memecoins will continue to plunge in value.

But it’s going to be interesting to see what Donald Trump’s imminent appearance at Bitcoin 2024 in Tennessee — scheduled for later today — will do to the likes of MAGA and TRUMP.

Bullish overtures about the future of the crypto market in Nashville could give some of these tokens a second wind.

Alternatively, it might end up being more of a “sell the fact” scenario — with interest in these tokens waning as soon as he steps off the stage.

With three-and-a-half months still to go until the U.S. heads to the ballot box, the rollercoaster ride concerning political meme coins shows no sign of abating soon.

And there’s little doubt that brand-new tokens will continue to emerge in response to developments on the campaign trail — such as the Democratic National Convention in August, a potential debate between Harris and Trump on television, and announcements related to who Harris’s VP pick might end up being.

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