Political Meme Coins: The New Frontier in Crypto Investing

Marius -

If you’ve been following the latest news in the crypto world, you’ve probably noticed that political meme coins are having a moment. With the 2024 U.S. elections just around the corner, both Republicans and Democrats are suddenly all about crypto. They’ve realized that a lot of voters own crypto, meaning these digital assets could seriously influence the election outcomes.

From "Anti-Crypto Army" to Embracing Crypto

Donald Trump has made specific pledges to the crypto community, such as promising to commute the sentence of Ross Ulbricht, the founder of Silk Road. This has garnered significant attention and debate.

Seeing former President Trump's appeal to the crypto community, Democrats have started to embrace digital assets too. Prominent figures like Senate Majority Leader Chuck Schumer now back efforts to reform regulations that previously hindered the industry.

Last week, Congress passed the Financial Innovation and Technology for the 21st Century (FIT21) Bill. This bill establishes a regulatory framework for crypto and clarifies which tokens are securities versus commodities. The crypto industry has been waiting for clear regulations for a long time, and this is very good news, especially after years of the SEC suing blockchain-related companies left and right. Some members of Congress had even spoken of building an “anti-crypto army”.

Correlation with Events

Now that we’re witnessing a historical change in the regulatory framework for crypto, the PolitiFi narrative (apparently there’s a fancy way of describing political memes) is gaining momentum. Political memes have been around before both candidates went full-on crypto, but the change in governmental tone at the end of May sparked new life into crypto tokens. Many of them reacted with a dramatic surge in price, leaving the holders very satisfied.

PolitiFy token index vs. Ethereum price over the month of May

For instance, the #1 token by market cap, MAGA with the ticker $TRUMP, appreciated by 180% in just a month.

Markets on Election Years

Despite the positive stance on crypto from both candidates, election years themselves have historically been positive for the markets. Based on data from past elections, we can draw several conclusions about market behavior. The first half of the election year often sees positive market performance as primary elections progress and investor sentiment adjusts to the emerging political landscape. This trend has held true this year, with both crypto and equity markets showing positive performance in the first half.

However, as we move into late summer and early fall, volatility tends to increase, particularly in September and October, due to debates and heightened uncertainty about the election outcome. Post-election, November and December typically see a relief rally if the election results align with market expectations, leading to a positive end to the year.

Market performance: pre-election year, election year and the year after.

After reading all of this information and seeing political memes giving investors huge profits, one must think, “Is My Portfolio Election Year Ready?” “Are my Trump and Biden bags big enough?”

The election and political narrative is just warming up. Political campaigns are in full swing, and any positive mention from any of the candidates is likely to boost political memecoins. There are also debates scheduled, and we can expect fireworks around those days.

Key US Election Dates 2024

  • June 27: Biden and Trump plan to hold a campaign debate hosted by CNN in Atlanta, Georgia, prior to the conventions.
  • September 10: Biden and Trump plan to hold a campaign debate hosted by ABC.
  • November 5: (the Tuesday after the first Monday of November): Election Day.

Political Memes: Investing in Humor

If you’ve ever traded memes, you know how difficult it can be. Memes can be very risky, with 99% launched going to zero often the same day of the launch. The PolitiFy category on CoinMarketCap has thousands of tickers related to the narrative. Many of them are not worth your attention, as communities failed to grow further and token prices are near zero. However, the market is showing us the leaders with thriving communities and growing holder counts already.

Although there are many more, the tickers listed below can be considered somewhat less risky investments as they have already gained momentum and recognition. Please keep in mind that these are not investment calls and require further research.

MAGA, $TRUMP

Launched on August 11th, 2023, MAGA Memecoin aims to blend humor with purpose by supporting U.S. veterans and protecting children. Available on multiple blockchains like Ethereum, Solana, BASE, and BNB, it offers flexibility and accessibility for crypto enthusiasts. With a total supply of 47 million tokens and a 1% tax on transactions, funds are allocated for marketing, development, donations, and liquidity. Boasting a market cap of $570 million and over 22,000 holders, MAGA Memecoin is gaining traction in the crypto community. The project also hosts weekly podcasts every Tuesday at 8 PM EST, featuring hosts like Shawn Farash and Steven Steele, creating an engaging community space.

MAGA, $MAGA

Launched as a playful tribute to Trump’s famous hat, MAGA combines humor with blockchain innovation. With a market cap of $200 million and 15,000 holders, it's gaining serious traction. The coin boasts a total supply of 420.69 billion tokens, with 100% of its liquidity pool burned and contract renounced, ensuring transparency and security.

$TREMP

Inspired by a parody of Trump's persona, $TREMP was launched on the Solana blockchain with humor and a mission to “make memes great again.” With a market cap of $120 million and over 31,000 holders, $TREMP is gaining momentum. The coin has zero transaction taxes, making it easier to buy and trade.

$BODEN

Boden, a political meme coin inspired by President Joe Biden, has gained notable traction on the Solana blockchain. With a market cap of $120 million and 31,000 holders, Boden has seen significant surges in popularity. The coin recently experienced a 252% increase in value, spurred by social media buzz and even a humorous mention from former President Trump. As the election season intensifies, Boden stands out among political meme coins for its mix of humor and impressive market performance.

Wrapping Up

Political meme coins are not just a passing trend; they’re becoming a significant factor in the 2024 U.S. elections. By staying informed and understanding how these digital assets can influence the political landscape, you can better position yourself for potential gains. As the election year unfolds, keep an eye on political memes—they might just be the key to boosting your crypto portfolio. So, are you ready to dive into the world of political memecoins and potentially profit from the upcoming election frenzy? The stakes are high, and the opportunities are exciting.