3 months ago
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The US presidential election-themed meme coins fell sharply with the recent crypto market downturn. Joe Biden-related BODEN fell 24% in the last 24 hours, while Trump-related MAGA and TREMP suffered downturns up to 43% and 36%, respectively. Experts shared that this might be a good entry point to speculate, but advise caution when betting on meme coins.
As reported by Crypto Briefing, the “Trump coins” took a particular hit with the news that the presidential candidate could be behind the token DJT spread by the X profile of the Pirate Wires newsletter. It turned out that both Mike Solana, Pirate Wires founder, and the newsletter’s X profiles were compromised.
As the “Election coins” are seen as a hot narrative in crypto currently, and taking into consideration the US presidential debates taking place on June 27th, investors are wondering if the current dip is a good entry spot to speculate with these meme coins.
Ben Kurland, CEO at DYOR, believes that the recent pullbacks indeed present an interesting opportunity for speculative investors, especially when their relation to political events and statements from Trump are considered.
“If we look at MAGA, for instance: the coin surged by 78% following Trump’s pro-crypto comments earlier in May. Now, the same factors can also contribute to sharp declines, such as the significant drops following Trump’s legal troubles. Much will depend on the upcoming sentencing after his recent guilty verdict in New York, where there is considerable uncertainty,” he added.
Additionally, Kurland believes that if a severe sentence comes out, Trump-related meme coins might slump even further. “However, if the court exercises leniency, which is likely based on the unprecedented nature of these charges, that event could trigger a significant surge in price.”
Darren Franceschini, co-founder at Fideum, warns investors to remain vigilant and cautious when considering investing in meme coins, regardless of their political affiliation.
“It is really important to recognize that the meme world is often dominated by large investors, or ‘whales,’ who can manipulate these assets to their advantage, often at the expense of smaller investors,” he explained.
Keeping steam for H2?
Kurland believes that election coins are likely to remain strong in the second half of the year, especially as the US presidential election draws closer. Notably, meme coins tied to political figures and events have historically seen increased volume and price surges during election periods, and the roadmaps for these coins are closely linked to election-related events.
“Those that capitalize on current narratives and popular topics are likely to perform the best, especially when linked to the winner of a specific contest,” added DYOR’s CEO.
Yet, given that over 13,000 tokens are created on Solana on a daily average, Franceschini is not keen to believe the current election narrative will remain influential.
“While we can see that the space offers significant opportunities and more developments may emerge, the large volume of meme coins being created daily makes any individual coin’s impact relatively insignificant in comparison, in my view.”
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