How the Upcoming Us Elections Are Changing the Cryptocurrency Market

13 Jun 2024

The US presidential election, scheduled for November 5 of 2024, is beginning to have a strong impact on the cryptocurrency market. The topic of cryptocurrency continues to gain traction in speeches delivered by the candidates seeking to gain votes from the cryptocurrency community, which accounts for more than 46 million citizens in the United States - 22% of the adult population, according to the New York research agency NYDIG. Given the current administration’s totalitarian attitudes towards cryptocurrency and cryptocurrency companies, we can expect easing of regulation as we get closer to the November elections.

Trump vs Biden Cryptocurrency Debate

The debate between serving President John Biden and the presidential candidate Donald Trump was reported on May 15, 2024, by CCN. The serving president will have to answer several unpleasant questions regarding the implemented cryptocurrency regulation policy, which has led to an outflow of cryptocurrency capital, the shutdown of large companies, and high-profile lawsuits. From Donald Trump, who has turned the topic of cryptocurrency into a weapon against his opponent, in addition to attacks on the current state of affairs, one can expect loud election promises that can lead to significant volatility in the cryptocurrency market. The possible participation of Elon Musk, who has expressed his willingness to host the debate, and independent candidate Robert Kennedy Jr., also known for his love of cryptocurrencies, could turn the debate from a pre-election event into a cryptocurrency one. The first round of debates will take place on June 27, and the second on September 10.

Coins without technology and product

Meme tokens, popular in the cryptocurrency market in 2024, were a response to the position of the US Securities Commission (SEC), led by the main cryptocurrency villain Garry Gensler. According to the SEC's position, all cryptocurrency tokens issued by blockchain projects must be registered as securities. This makes sense: investors become familiar with the project, believe in its technology, and invest in the creation of the product through the purchase of shares or tokens. As a response to the SEC's position, the market has introduced meme tokens - comic-like cryptocurrencies, behind which there is neither technology nor product development, which does not allow the SEC to classify them as shares and, accordingly, charge the creators of the tokens with trading in unregistered securities.

Today, there are 2,283 meme tokens listed on Coinmarketcap, representing only 10% of the total meme tokens created, and the combined capitalization of registered coins exceeds US$60 billion. The meme coin market continues to grow - 183 new cryptocurrencies were issued in April of 2024 compared to 18 in April of 2023. The average increase in the value of new coins after launch is 1300%, so it is not surprising that these coins without a product and technology have become so popular.

The Hot Meme Summer 2024

The spring of 2024 saw the launch of several “political” meme tokens. The TRUMP token, created in February of 2024 on the SOLANA blockchain, has grown by 20% over the entire period and has now grown by 113% against the backdrop of Donald Trump’s decision to accept cryptocurrencies as donations during the election campaign. TRUMP is not currently traded on any centralized exchanges.

TheMAGA token on the Ethereum blockchain was launched in December of 2023 and has grown by 41% over the entire period, and by 25% since the announcement of the debate on May 15. Like its predecessor, the token is not traded on centralized exchanges.

The STRUMP token, launched at the end of March of this year on the Ethereum blockchain, grew 1100%, but between May 15 and May 22 showed a modest increase of 6%, which is significantly lower than the market average. STRUMP, however, is available for purchase on centralized exchanges.

TheBABYTRUMP token launched at the end of February of this year on BinanceSmartChain, is up 39% to date, with a 17% increase between May 15 and May 22. The token is traded on centralized and decentralized exchanges.

Another meme coin honoring Donald Trump, TREMP, was also launched in March on the SOLANA blockchain, and has grown by 800% over the entire period and by 90% from May 15 to  May 22. The token is traded in different places.

Joe Biden is represented by the__Boden__ meme token on SOLANA. Since its launch in March, it has grown by 780%, and in the period from May 15 to 22 - by 6%. This token is available on various platforms.

Elon Musk, a darling of the crypto community andDOGE ambassador, as well as a potential debate host, has two new coins dedicated to him. The OLENMOSK token, launched in March on the SOLANA blockchain, dropped in price by 86% over the entire period and remained stable from May 15 to May 22. It is, however, not available for purchase on centralized exchanges. Another token ELON is also in the red zone, having lost 92% in price over the entire period, but over the past week showed an increase of 13%. Unlike the previous token, ELON is traded on several large centralized exchanges.

Judging by the number of new “political” meme tokens and the dynamics of their prices, the crypto community is betting on the further growth of the popularity of Donald Trump and his victory in the upcoming elections, which may affect the growth in the value of the cryptocurrencies inspired. However, you need to be prepared for total sales after the first stage of the debate.

Not financial advice. DYOR