Political memecoins plunge amid Trump vs. Biden presidential debate

As the 2024 US presidential debate between former President Donald Trump and President Joe Biden unfolds, the volatility surrounding political memecoins has reached new heights.

Political memecoins, or so-called PolitiFi coins, often created to satirize or support political figures, have experienced significant price movements in response to the first presidential debate on June 27, according to Cointelegraph.

Following the debate, the entire market capitalization of PolitiFi meme coins decreased by 6.7%. Individual coins suffered considerably more: MAGA (TRUMP) fell by 14.1% and MAGA Hat (MAGA) by 14.6%. Doland Tremp (TREMP) fell 15.3%, while Joe Biden-themed meme currency Jeo Boden (BODEN) dropped 32.5%. (Data: CoinGecko).

This was unexpected given that three super political action committees (PACs) supporting the cryptocurrency industry have raised over $200 million to influence the 2024 election. The debate primarily focused on issues like the economy, immigration, and abortion, but crypto sector was not covered. Investors are now looking to the next debate on September 10 for potential impacts on these volatile assets.

Political memecoins are a niche within the cryptocurrency market, often created to reflect public sentiment towards political figures and events. They are highly speculative and driven by social media trends and political developments. The recent debate highlighted this volatility, as market sentiment shifted dramatically based on the candidates' performances.

Meanwhile, data from prediction service, PredictIt, showed that Trump's odds of winning the presidency increased from $0.53 to $0.63, while Biden's fell from $0.48 to $0.37. This shift in perceived electoral prospects contributed to the price movements of the associated tokens.

As the 2024 election approaches, the performance of political memecoins will likely remain highly sensitive to political events and statements from key figures.

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