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PolitiFi tokens surge in popularity as US election approaches; Trump meme coins see higher returns
Key points
- MAGA token surged 51% after Trump’s shooting, reflecting rising cryptocurrency speculation ahead of the U.S. election.
- VanEck’s SOL ETF launch is seen as a bet on the outcome of the presidential election.
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Cryptocurrency traders are increasingly using PolitiFi tokens to speculate on the US presidential campaign, with tokens linked to former President Donald Trump seeing significant price fluctuations. According to a recent report from Kaiko, the MAGA token surged 51% in two hours after Trump’s shooting on Saturday, mirroring a surge in Trump’s Media & Technology Group (DJT) stock.
Notably, weekly trading volume for MAGA has increased from $10-15 million in February to a peak of $120 million in June, indicating growing market interest. However, these tokens have so far shown little predictive value.
The first well-known figure to endorse PolitiFi tokens was Andrew Kang, founder of venture capital fund Mechanism Capital. Kang explained in a post X Starting in February, Trump-related meme coins could rival well-known tokens in the space, such as Dogecoin (DOGE) and Shiba Inu (SHIB).
“This bet is not just about whether Trump will win or not. The polls suggest he is very likely to win, but that’s not the point, the point is that he will always be in the headlines and people will constantly talk about Trump,” Kang said at the time.
Additionally, Matthew Sigel, head of digital asset research at VanEck, said his firm’s Solana exchange-traded fund (ETF) spot filing was a bet on the election. The SEC has until March 2025 to respond to VanEck’s filing, leaving little time to appoint a potential new administration if President Biden loses the election.
Historically, it has taken new presidents an average of 117 days to appoint an SEC chair, with the exception of Barack Obama’s seven-day appointment of Mary Schapiro during the global financial crisis.
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