As a seasoned researcher with a background in political economy and cryptocurrencies, I find the recent surge in meme coins related to potential Democratic and Republican candidates intriguing. The news of US President Joe Biden testing positive for COVID-19 has set off a flurry of activity in this niche market, with investors speculating on who might succeed him.
US President Joe Biden announced that he had tested positive for COVID-19, leading to widespread speculation about his possible re-election bid in 2024. This news caused a stir in the market for meme coins named after potential successors, igniting a surge of excitement within the cryptocurrency sector.
At the age of 81, Biden is currently dealing with mild symptoms and self-isolating at his home in Delaware, as confirmed by Karine Jean-Pierre. However, despite his attempts to carry on with his responsibilities, predictions from Polymarket indicate a 63% likelihood that he might step down from the presidential race due to health concerns.
In reaction to the ambiguity, Gabin Noosum (NOOSUM) and Kamala Horris (KAMA) experienced significant growth, rising 171% and 94%, respectively, within a day. Named after potential Democratic nominees Gavin Newsom and Kamala Harris, these tokens represent investors’ hypotheses regarding who may follow Biden.
Meme Coins’ Political Tumbles
In contrast, meme coins linked to former President Donald Trump have experienced significant decreases. Specifically, MAGA (TRUMP) and the misnamed “Doland Tremp” (TREMP) have declined by approximately 8.5% and 13%, respectively, based on Coingecko’s data. This downturn suggests that investors’ faith in Trump’s prospects for the upcoming election has waned, possibly due to concerns surrounding Joe Biden’s health issues.
According to reports, Nancy Pelosi has given Biden a private warning that winning the November election against Trump might be difficult. This revelation, coupled with Biden’s debate showing, has fueled concerns about his ability to secure re-election. Simultaneously, there’s been heightened activity in meme coin markets as investors react to the political instability.
The meme coin trend isn’t novel. In early 2024, a humorous digital token called Jeo Boden (BODEN), modeled after Biden, amassed a market value of $648 million, highlighting the erratic and speculative nature of the meme coin sector. Meme coins prosper from social media buzz and investor anxiety to jump in (FOMO), frequently causing sudden price swings.
Within just 24 hours after being introduced to the market, there was a remarkable 54% spike in demand for Boden tokens. These digital assets, devoid of inherent worth, generate considerable buzz due to their potential for swift financial gains, fueled by viral social media hype. The mania surrounding meme coins has led to substantial capital accumulation during presales, despite the cautions issued by experts regarding the elevated risk of fraudulent schemes and sudden disappearance of projects (referred to as “rug pulls”).
Meme Coins Urgency Risky Frenzy
A crypto learning institution, Gryphsis Academy, points out that the allure of meme coins stems from their scarcity and timelessness, igniting a sense of urgency among potential investors. This sense of urgency is intensified by time-limited deals and exclusive airdrops, encouraging quick responses. Nevertheless, it’s essential to be cautious as numerous new tokens may turn out to be fraudulent.
As a researcher studying the cryptocurrency market, I would like to share my perspective on Anatoly Yakovenko’s recent warning to investors regarding meme coin investments on the Solana platform. With an increasing number of new tokens being launched every day, the risk of encountering a rug pull becomes significantly higher. Therefore, it is crucial for investors to conduct thorough research before making any investment decisions in this space.
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2024-07-18 18:05