News
These Trump-Linked Crypto Tokens Have Surged, But Here’s the Catch
Last updated: July 16, 2024 at 1:36 PM ET
First Published: July 16, 2024 at 8:00 AM ET
Cryptocurrency traders have doubled down on a Donald Trump victory in November’s US presidential election, hoping that Trump’s presidency could create a more favorable environment for the digital asset sector.
The digital asset industry generally perceives Trump as more crypto-friendly, after the former president shifted gears in his stance on the space, now embracing cryptocurrencies despite criticizing them in the past. Trump has allowed his campaign to accept cryptocurrency donations since May, has met with crypto-mining executives…
Cryptocurrency traders have doubled down on a Donald Trump victory in November’s US presidential election, hoping that Trump’s presidency could create a more favorable environment for the digital asset sector.
Overall, the digital asset industry perceives Trump as more favorable to cryptocurrencies, after the former president changed gear in its position in space, now hugging crypto despite having criticized it in the past. Trump allowed his campaign to accept cryptocurrency donations from May, met the managers at crypto-mining companies last month and reportedly, he introduced himself as a “crypto-president”.
Trump-themed tokens surged over the weekend after the presumptive Republican presidential nominee survived a attempted murder.
MAGA token jumped more than 80% from around $6.28 to $11.50 in the two hours following the shooting at a Trump rally on Saturday, before giving up some gains the following day, according to CoinMarketCap data. The token was trading around $7.87 on Tuesday, down 3.5% over the past 24 hours.
MAGA’s weekly trading volume has also increased in recent months, showing growing interest from market participants, according to analysts at cryptocurrency research firm Kaiko. Its weekly trading volume jumped from $10 million to $15 million in February to $120 million in June, before declining in early July, analysts noted.
According to Kaiko analysts, tokens like MAGA tied to Trump have shown poor predictive value of potential election outcomes, but reflect cryptocurrency investors’ enthusiasm for a potential Trump victory.
Meanwhile, on the cryptocurrency prediction market Polymarket, participants have placed bets worth over $260 million on the US presidential election. Participants are betting on a 72% chance of a Trump win, versus an 18% chance of a Biden win.
Additionally, Matthew Sigel, head of digital assets research at VanEck, he said on X earlier this month that the company application for a Solana-based exchange-traded fund In June, there were also bets on Trump’s victory.
The consensus among market participants is that Solana’s demand
The ETF is a long shot, as there are no ETFs based on Solana futures in the United States, which was considered an important precondition for SEC approval. spot bitcoin ETF.
If Democrats win the presidential election, the odds of a Solana ETF being approved would be close to zero, according to James Seyffart and Rebecca Sin, ETF analysts at Bloomberg. “They might be better off under a Trump-appointed SEC chief, but that’s no guarantee,” the analysts wrote in a recent note.