From Investing.com: 2024-06-25 02:22:08

Cryptocurrency tokens related to former President Trump are surging in volume and value as the U.S. presidential election draws near. Trump-linked meme coins dominate the market, with the largest token, MAGA, soaring to $775 million in value since late August 2023. Comparatively, the token linked to President Biden, Jeo Boden, reached a high of $648 million before sliding to $87 million.

The rise of political meme coins, including those linked to Trump and Biden, is fueled by attention cycles and speculation. Trump, with his ability to attract attention, is seen as an ideal subject for meme tokens. As the election approaches, experts anticipate increased speculation and price surges for Trump-related tokens.

Political tokens account for only a fraction of the meme coin market’s $46 billion valuation. Concerns over legitimacy and the risk of “rug pulls” persist, with top political tokens launched between May and June this year. These tokens are primarily traded on smaller exchanges and rely on catchy names and humor to gain popularity among retail investors.

Despite Trump not endorsing any crypto tokens in his name, his criticism of Democratic cryptocurrency regulation efforts has earned him popularity among these tokens. The broader crypto industry is mobilizing millions of dollars to support crypto-friendly candidates in the upcoming election. Investor twins Tyler and Cameron Winklevoss donated $2 million in bitcoin to support Trump, but the donation was refunded for exceeding federal limits.

Traders on Polymarket are placing bets on a 59% chance of Trump defeating Biden in the election. The growing speculation around election results has turned these political tokens into speculative assets themselves. Meme coins, similar to nonfungible tokens, capitalize on public attention and serve as collectors’ items in the crypto market.

Read more at Investing.com: Trump drubs Biden in meme coins By Reuters