On Sunday, President Joe Biden announced he would not be running for the 2024 Presidential race. This caused significant turmoil in the meme coin market. Coins themed around Biden dropped sharply, affecting platforms like Polymarket. Biden endorsed Vice President Kamala Harris to succeed him, leading to a surge in Harris-themed meme coins.
In a statement on X (formerly Twitter), Biden said: “My fellow Democrats, I have decided not to accept the nomination and to focus all my energies on my duties as President for the remainder of my term. My very first decision as the party nominee in 2020 was to pick Kamala Harris as my Vice President. And it’s been the best decision I’ve made. Today I want to offer my full support and endorsement for Kamala to be the nominee of our party this year. Democrats — it’s time to come together and beat Trump.”
This announcement had a huge effect on the meme coin market. Biden-themed coins dropped over 60%. For instance, the “Jeo Boden” (BODEN) token fell 60.11% within 24 hours, losing nearly $10 million from its market cap, which was about $15 million just days earlier.
On the other hand, Kamala Harris-themed tokens surged. The “Kamala Horris” (KAMA) token increased by 80%, fueled by speculations of her becoming the next Democratic candidate. This highlights the speculative nature of meme coins, which often react strongly to news and public perceptions. Investors face extreme risks as values fluctuate based on political events.
Prediction markets like Polymarket saw significant activity. Some traders, who had expected Biden’s exit, made huge profits. One trader gained a 100x profit as the news spread. Another earned about $196,102 from an initial bet of $38,160 on Biden’s withdrawal. However, not all traders were successful; a user known as “AnonBidenBull” lost about $2 million betting on Biden’s continued candidacy.
Although Biden did not mention health reasons for his decision—despite recently contracting COVID-19—the political implications are clear. The chances of Kamala Harris winning the US Presidential election have increased to 29%. This shows increased confidence among Democrats who see Harris as a strong candidate.
The volatility following Biden’s announcement highlights the speculative and unpredictable nature of meme coins. These investments are highly sensitive to news and public sentiment, leading to dramatic value changes in response to political events. While some investors made substantial gains, others suffered significant losses, showcasing the high-risk, high-reward nature of this market.
In summary, President Biden’s withdrawal from the 2024 race had a major impact on meme coins and prediction platforms. His endorsement of Kamala Harris led to a surge in Harris-themed meme coins while Biden-themed ones plummeted. This event underscores the speculative nature of meme coins and the extreme risks associated with investing in them.
