Election Memecoins Overview

With the explosive growth of the Web3 industry, new concepts are emerging. One of them is meme tokens, which have already gained popularity among the crypto community due to their entertaining nature and pop culture references.

They also include assets with political themes. Some experts believe that such assets may overtake Dogecoin (DOGE), Shiba Inu (SHIB) and Pepe (PEPE) memecoins in terms of growth and profitability.

Meme cryptocurrencies that reference the names of presidential candidates are valued at hundreds of millions of dollars, so today in our article we'll look at why these meme coins have become so popular and how they affect the US elections.

The Surge in Memecoins' Popularity

Memecoins are tokens based on popular internet memes or characters that are humorous and entertaining. Their value is largely determined by social media activity, celebrity endorsements, and the broad meme culture that thrives on the internet.

Memecoins function like regular tokens, with most running on Ethereum or Solana blockchains using smart contracts. They are characterized by high volatility and can change in value dramatically over short periods of time. They usually have a very large or unlimited supply, resulting in a low cost.

Memecoins have become the fastest growing sector in the crypto market in 2024, with a cumulative capitalization growth of more than 1,800% since the beginning of the year. 

Impact of the US Presidential Elections

According to Coingecko data, memecoins linked to political figures have seen notable increases in trading activity and price. Specifically, coins associated with Donald Trump continue to experience high volatility. However, with Joe Biden now a former candidate, the focus has shifted to coins associated with current figures like Kamala Harris, the leading Democratic candidate for the 2024 US presidential election.

Many people think that "joke" tokens are not just for speculative purposes; there are more intriguing underlying tendencies hidden behind them. They are also having a favorable effect on the industry as a whole.

The CEO of Sistine Research and cryptocurrency trader Forrest Przybysz stated in a Reuters article that memecoins' appeal is not solely speculative, but rather dependent on human attention cycles. Additionally, the more attention that these tokens are able to draw and hold, the more valuable they will be.

Moreover, the former CEO of Bitmex, Arthur Hayes, pointed out that memecoins might be advantageous for whole blockchain networks in terms of applications.

Political Memecoins: A Closer Look

Amid the overall growth of the meme coin sector, smaller niche categories have emerged. One such category is PolitiFi, which serves as a barometer for analyzing political sentiments within the crypto community. This trend essentially monetizes public attention.

Market Capitalization

Despite its niche status, PolitiFi has a relatively small market cap compared to the entire meme coin market. According to Coingecko, the market cap of PolitiFi is now approximately $1.35 billion, representing 2.5% of the total meme coin market. The number of tokens within this category has slightly increased, with around 42 tokens available. Out of these, five tokens now exceed a market cap of $100 million.

Community Attention

These tokens have nonetheless managed to capture the crypto community’s attention. For instance, Przybysz is optimistic about the impact of the US elections on the MAGA (TRUMP) token, named after the former president. 

Key Political Meme Coins

• MAGA coin (TRUMP): This token experienced significant volatility, with a fluctuation of over 70% within hours following a jury's guilty verdict in the Trump Organization's document forgery case in late February.

• Jeo Boden coin (BODEN): With an intentional misspelling of Joe Biden’s name, this token boasts a market cap of over $106 million, trailing the MAGA (TRUMP) token by roughly 40%. Despite this, BODEN surpasses other Trump-related meme coins like Doland Tremp coin (TREMP) and Super Trump (STRUMP).

• TrumpCoin (DJT): Initially promoted on social media as an "official" token of Donald Trump, TrumpCoin’s market cap soared to $300 million by late June 2024. However, after it was clarified that former President Trump had no association with DJT, the meme coin’s market cap plummeted nearly 30 times, dropping to $10 million within a week, according to Coingecko.

• Kamala Horris (KAMA): KAMA is a meme coin inspired by Kamala Harris. The token gained significant attention after President Biden announced he would not seek reelection, endorsing Harris instead.

Speculation and Risk

The speculative and risky nature of meme coins is amplified by the political narrative. Tokens like MAGA (TRUMP) demonstrate the extreme volatility and potential for significant gains or losses within short periods.

It's crucial to remember that the origins and motivations behind many of these tokens remain unclear. Some market participants rightly fear and criticize this new trend, pointing out the risks of rug pulls.

Cryptocurrencies and US Elections

Analysts believe that cryptocurrencies have become an important part of the US presidential election expected in November 2024. Grayscale's observations showed that 53% of respondents are willing to vote for a cryptocurrency-oriented candidate.

The figures show that the cryptocurrency electorate is capable of influencing elections. Forbes reports that one in five Americans already own cryptocurrency and the size of this voting block presents a huge opportunity for political candidates.

Conclusion

Meme tokens dedicated to famous politicians not only demonstrate the influence of social movements on the world of cryptocurrencies, but also illustrate how blockchain technology can be used in creative and humorous initiatives, as well as members of such communities are empowered not only to participate in the token economy, but also to express their views on global politics through innovative financial means.

It is important to note that meme tokens are not official initiatives of major politicians, but rather a creative product of enthusiasts who use their names and images for entertainment purposes. These projects are often inspired by the popularity and counter-versions around political personalities, becoming a platform for expressing satire, humor and social criticism.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.