Many analysts are of the opinion that Donald Trump will have a greater impact on the cryptocurrency market than Kamala Harris. However, the potential effect on the meme coin sector is a matter of contention.
Omid Malekan, a professor at Columbia Business School, believes that Trump’s victory in the election could have a negative impact on the meme coin sector. The surge in investor interest in meme coins has been driven by dissatisfaction with the tokenomics of venture-backed projects. If Trump becomes president, there is a possibility that the Republican Party may make changes to certain rules that would allow token holders to benefit from dividends and fees, thereby potentially reducing interest in meme coins.
Meme coins have emerged as a response to the strict policies of the U.S. Securities and Exchange Commission (SEC). Nic Carter, co-founder and general partner of Castle Island Ventures, stated that if the Republicans, led by Donald Trump, soften these policies, it may result in a downturn. This was in response to a statement from Professor Omid Malekan urging the Solana project community to support the Democrats, represented by Kamala Harris, in the presidential elections.
Malekan argued that meme coins represent economic populism and serve as a form of protest against traditional crypto assets and venture investors. He suggested that institutionally funded projects are a response to the repressive policies of SEC Chairman Gary Gensler and Senator Elizabeth Warren.
There are mixed reactions from the crypto community to these statements. Blogger and influencer Murad believes that the growth of meme coins is influenced by economic rather than political factors, and the election results are unlikely to significantly impact this sector. Another popular blogger, Jordan Fish, known as Cobie, disagrees with Malekan and Carter, highlighting that the interest of regular traders in meme coins remains high as they cannot participate in large projects in the early stages.
The meme coin sector has experienced rapid growth and has become the fastest-growing sector in the crypto industry, climbing by over 1800% since the start of the year. Meme coins associated with Donald Trump have seen a sharp increase in volume and price ahead of the U.S. election.
While this category has a relatively small capitalization compared to the entire meme coin market, it has attracted significant attention in the crypto community. Forrest Przybysz, a trader and CEO of Sistine Research, noted that the popularity of meme coins is based on attention cycles and that the more attention they receive, the higher their value will be.
In conclusion, the crypto market is likely to experience volatility as the U.S. presidential elections approach, and the impact of the election results remains uncertain. Regardless of the outcome, the future of meme coins and their strategic significance for the development of decentralized finance remain an open question.