ManyexpertsbelievethatDonaldTrumpwillpositivelyimpactthecryptomarketmorethanKamalaHarris.However,theimpactonthememecoinsegmentremainsamatterofdebate.
AccordingtoColumbiaBusinessSchoolprofessorOmidMalekan,Trump’ssuccessintheelectioncouldnegativelyimpactthememecoinsector.
TofurtheringratiatemyselfwithSolanafans,here\'sanargumentofwhyaTrumpwinand/orRepublicansweep(whichPolymarkethasat50%)isbearishmemecoins.
i)Memecoinsthemselvesareaformofeconomicpopulism.Theyareastatementagainsttheunfair(andoftengrifty)…
—OmidMalekan🧙🏽♂️(@malekanoms)October27,2024
Theexpertnotedthatinvestorinterestinmemecoinshasincreasedduetodisappointmentinthetokenomicsofventure-backedprojects.IfTrumpbecomespresident,theRepublicanPartymaychangesomerulesallowingtokenholderstobenefitfromdividendsandfees,whichcouldreduceinterestinmemecoins.
MemecoinsasaresponsetoSECpolicies
MemecoinshavebecomeakindofresponsetothetoughpolicyoftheU.S.SecuritiesandExchangeCommission(SEC),sotheirsofteningintheeventofavictoryoftheRepublicanswithDonaldTrumpatthehelmwillleadtoadrawdown,statedtheco-founderandgeneralpartnerofthefirmCastleIslandVentures,NicCarter.
ThisishowhecommentedonthepublicationoftheprofessoroftheColumbiaBusinessSchool,OmidMalekan.Init,hecalledonthecommunityoftheSolanaprojecttosupporttheDemocrats,whoarerepresentedinthepresidentialelectionsbyKamalaHarris.
Theexpertarguedhisopinionasfollows:
Memecoinsrepresenteconomicpopulismandaprotestagainsttraditionalcryptoassetsandtheparticipationofventureinvestors.
InstitutionallyfundedprojectsarebecomingaresponsetoSECChairmanGaryGensler’sandSenatorElizabethWarren’s“repressivepolicies.”
ARepublicanvictorycouldstrengthenthepositionofsignificanttraditionalcryptoassets.Thiswillintroduceeconomicmechanismstotokenholderswhoareabsentfrommemecoins.
MalekaninsistedthatbetterregulationofthecryptosphereintheU.S.willactasa“bearish”factorformemecoins.Cartersupportedhim,sayingthatiftheSEC’spositionchanges,demandformemecoinswilldecrease,butitwillnotdisappearcompletelyduetoexistingspeculativeinterests.
Opinionsfromthecryptocommunity
Peoplereacttothesestatementsdifferently.BloggerandinfluencerMuradbelievesthatthegrowthofmemecoinsisnotduetopoliticalfactorsbuteconomicones,andtheelectionresultsareunlikelytosignificantlyaffectthissector.
99%ofMemecoinbuyerscouldn’tcarelessaboutPolitics
Therearesecularsocio-economicforcesatplaythataremuchbiggerthanasingleelection
TheriseofMemecoinshasmoredotowiththepersistentlyrisingGlobalMoneySupply.
WillthatstopunderTrump?Nope.…
—Murad💹🧲(@MustStopMurad)October27,2024
Anotherpopularblogger,JordanFish,knownasCobie,alsodisagreeswithMalekanandCarter,emphasizingthattheinterestofordinarytradersinmemecoinsremainshighsincetheycannotparticipateinlargeprojectsintheearlystages.
MemecoinsandtheU.S.Election
Thememecoinsectorhasbecomethefastest-growingsectorinthecryptoindustryin2024,risingbymorethan1800%sincethebeginningoftheyear.AheadoftheU.S.election,memecoinsassociatedwithDonaldTrumphaveseenasharpincreaseinvolumeandprice.
Thiscategoryholdsasmallcapitalizationrelativetotheentirememecoinmarket.Coingeckoestimateditssizeat$1.2billion,whichis2.4%oftheentiremarket,withonlyfourofthemhavingacapitalizationabove$100million.However,thisdidnotpreventthemfromattractingtheattentionofthecryptocommunity.
ForrestPrzybysz,atraderandCEOofSistineResearch,notedthatmemecoins’popularityisbasedonattentioncycles,andthemoreattentiontheyreceive,thehighertheirvaluewillbe.
“Trumpisanattentionmagnet.Thereforeheistheidealsubjectforamemetoken.”
ForrestPrzybysz,acryptocurrencytraderandCEOofSistineResearch
YanLiberman,co-founderatcryptoresearchfirmDelphiDigital,emphasizedthatmemecoinsactascollectibles,allowingforthemonetizationofpublicattention.
“Memecoinsaresimilartononfungibletokensintermsofbeingabitofcollectors’item.Theideaisthatyoumonetizepublicattention,”
YanLiberman,co-founderatcryptoresearchfirmDelphiDigital
Thus,ifTrump’selectionpromisescometrue,Americawillseeanewboominthecryptocurrencysegment.However,thequestionofmemecoinsremainsopen—thecoinsareunlikelytohaveanypracticalutilityandstrategicimportanceforthedevelopmentofthedecentralizedfinancemarket.
Onewayoranother,thecryptomarketislikelytofacevolatilityastheU.S.presidentialelectionsapproach.Butit’snotentirelyclearwhatkindofvolatilityitwillbe.
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