Donald Trump is predicted to have a greater impact on the crypto market compared to Kamala Harris, according to experts. However, the effect on the meme coin sector is still up for debate.
Omid Malekan, a professor at Columbia Business School, believes that Trump’s success in the election could have a negative impact on meme coins. He suggests that if Trump becomes president, the Republican Party may change certain rules that would allow token holders to benefit from dividends and fees. This could potentially reduce 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, states that if the Republicans, with Trump at the helm, soften these policies, it could lead to a downturn in meme coins.
Malekan argues that meme coins represent economic populism and a protest against traditional crypto assets and venture investors. He believes that if the crypto sphere in the U.S. is better regulated, it would have a negative impact on meme coins. Carter agrees, stating that while demand for meme coins may decrease with a change in the SEC’s position, speculative interests would still exist.
Opinions within the crypto community differ on this matter. Some, like blogger Murad, believe that the growth of meme coins is driven by economic factors rather than political ones, and therefore, the election results may not have a significant impact on this sector. Blogger Jordan Fish, known as Cobie, also disagrees with Malekan and Carter, highlighting that ordinary traders have a high interest in meme coins as they cannot participate in large projects at early stages.
The meme coin sector has experienced significant growth in the crypto industry this year, increasing by over 1800%. Meme coins associated with Donald Trump have seen a surge in volume and price ahead of the U.S. election. While this sector holds a small capitalization compared to the overall market, it has attracted attention within the crypto community.
Forrest Przybysz, a trader and CEO of Sistine Research, suggests that the popularity of meme coins is based on attention cycles. The more attention they receive, the higher their value becomes. Yan Liberman, co-founder at crypto research firm Delphi Digital, adds that meme coins serve as collectibles, allowing the monetization of public attention.
Overall, the impact of the U.S. presidential election on the crypto market is likely to result in volatility. However, the specific impact on meme coins and their practical utility in the decentralized finance market remains uncertain.