The world of political meme coins has seen a significant surge in volume and value in recent weeks, with former President Donald Trump taking a commanding lead over his rival, Joe Biden. These crypto tokens, known as “PolitiFi” tokens, have a combined market value of approximately $1 billion, with a majority of them being linked to Trump. Trump-themed tokens, such as MAGA and MAGA Hat, have gained popularity, playing on Trump’s iconic slogan of Make America Great Again. On the other hand, there is only one token related to President Biden, called Jeo Boden. The largest token linked to a political figure, MAGA, trades under the ticker symbol TRUMP and has seen a significant increase in market value since its launch in late August 2023.
According to Forrest Przybysz, a cryptocurrency trader, meme coins are highly speculative in nature and driven by attention cycles. The more attention a token can attract and maintain, the higher its price tends to go. Trump, being an attention magnet, is an ideal subject for a meme token. As the U.S. presidential election approaches, it is expected that the price and speculation surrounding Trump-based meme tokens will continue to rise. These political tokens are a subset of the larger meme coin market, which is valued at $46 billion and is known for its hyper-speculative and volatile nature.
The Rise of Political Tokens
The origins of some political tokens are obscure, leading traders to be wary of potential scams and rug pulls, where developers disappear with investors’ money. Most political tokens aim to capitalize on the increased attention on political figures ahead of elections. Despite their popularity, these tokens are not widely listed on major cryptocurrency exchanges like Coinbase or Binance. They are primarily traded on smaller exchanges in ether or solana pairs, with market values typically below $100 million.
Questionable Legitimacy and Speculation
As the race between Biden and Trump remains tight in national opinion polls, the upcoming presidential debate is expected to be a critical event. Traders on platforms like Polymarket are placing bets on the outcome of the election, with many showing confidence in Trump’s chances of unseating Biden. Political tokens rely on the popularity of political figures to attract investors, often using satirical or humorous names to appeal to retail investors. While Trump himself has not endorsed any crypto token in his name, his stance against Democratic attempts to regulate the sector has increased his popularity among these tokens.
As the November U.S. presidential election draws closer, the crypto industry is expected to continue investing tens of millions of dollars in supporting crypto-friendly candidates. The rise of political meme coins, particularly those linked to Trump and Biden, highlights the growing intersection between cryptocurrency and mainstream politics. While these tokens may offer a unique investment opportunity, investors should approach them with caution due to their speculative nature and the potential risks associated with an unregulated market. Ultimately, the success of political tokens will depend on the ability of their associated figures to maintain public attention and support in the lead-up to the election.