Memecoins
US Presidential Debate Impacts Political Memecoin Market
As President Joe Biden and former President Donald Trump engaged in a historic televised debate, politically themed memecoins saw price fluctuations.
The market for these tokens, now valued at $1.3 billion according to Coingecko PolitiFi category datafell 7.5% over the past day. Additionally, several candidate-inspired memecoins saw significant declines during the debate.
On Ethereum (ETH), MAGA (TRUMP) fell 6.4% and MAGA Hat (MAGA) fell 10.8% in one hour. Solana-based tokens (SOL) Jeo Boden (BODEN) and Doland Tremp (TREMP) declined by 26% and 9.4%, respectively, while Ethereum’s Super Trump (STRUMP) declined by 1.8%. Over the last 24 hours, MAGA is down 11.1%, BODEN by almost 46%, TREMP by 12.3% and STRUMP by 19.4%.
According to The Block, Memepad founder Max Jones suggests that these tokens could serve as informal popularity indicators for candidates as the election campaign heats up. He pointed out that their volatility is linked to both political hype and broader market trends.
Traders have been watching the debate to get a glimpse of the candidates’ positions on cryptocurrency. Trump has previously criticized Biden’s approach to Bitcoin (BTC) and advocated for domestic Bitcoin mining.
The presidential crypto war
The block reported that Bitfinex analysts view Trump as potentially more crypto-friendly, as he promised to be again and againThey suggest that a Trump victory could lead to a more favorable regulatory environment for cryptocurrencies.
Biden turned out to be a much less crypto-friendly candidate. Earlier this month, he vetoed A The House of Representatives has proposed to repeal Securities and Exchange Commission (SEC) Staff Accounting Bulletin 121 (SAB 121).
The decision in question was a bipartisan effort that saw a dozen Democrats align with the majority of Republicans in supporting the resolution, easily surpassing the simple majority needed for its passage. Issued in 2022, SAB 121 required companies holding clients’ cryptocurrencies to record them on their own balance sheets, which could have significant capital implications for banks working with crypto clients.
Since then, Biden has taken a more crypto-friendly stance. The Biden campaign increased engagement with the crypto community started after Trump started fighting for the crypto vote. Earlier this month, news spread that Biden’s campaign team was in talks with key players in the cryptocurrency industry to potentially accepting cryptocurrency donations via Coinbase Commerce.