Original author: Daniel Ramirez-Escudero
Original title: Trump based memecoins could thrive after election no matter what
Original source: Cointelegraph
Compiled by: Koala, Mars Finance
As the US election approaches, the price of PolitiFi memecoins continues to surge, which may mark the end of them if they cannot find new energy to serve the interests of the community.
Politically based memecoins are surging in the run-up to the US presidential election in November – but can they survive waning interest in the post-election period?
The memecoin craze dominated cryptocurrency trading in 2024, with politically related tokens (PolitFi) such as Jeo Boden (BODEN) and Maga (TRUMP) outperforming other memecoin categories.
Many market observers believe they will peak sometime in the next two months before fading after the election. “Once the hype is gone, liquidity will be gone,” Crypto Rand, an anonymous cryptocurrency market analyst and trader, warned Cointelegraph. “Lack of liquidity can easily get you into trouble.”
This assumption may be premature, as some say that tokens with the right properties could survive the expected drop or even thrive after the election.
Kyle Kemper, who worked on the Robert F. Kennedy (RFK) campaign and developed Make America Health Again (MAHA), told Cointelegraph that “if PolitiFi memecoins can unlock new use cases and add more value to memecoins, then they definitely have a future after the US election.”
“PolitiFi has the potential to grow beyond memecoin into more serious applications such as campaign coins, candidate-specific tokens, and movement-driven cryptocurrencies.”
But the reality is that most memecoins don’t last long enough to be sustainable.
The short life of Memecoin
Crypto Rand said that meme coins rely heavily on social media sentiment and hype to create value, rather than solid fundamentals or utility. Rapid growth is almost inevitably followed by rapid decline.
“Memcoins rarely last more than three months,” the trader said.
97% of memecoins have died since 2024. Source: Chainplay memecoin report 2024
According to traders, 95% of investors view memecoins as pure gambling, with few intending to hold the assets long-term. This could mean the U.S. election will be the end of PolitiFi’s current craze, unless Donald Trump wins.
“If Trump wins the election, I believe it will spark a mini-season of The Last Dance.”
However, Crypto Rand said that the “vast majority” of PolitiFi’s memecoin will go to zero.
If PolitiFi tokens can develop new use cases, they will survive
Kemper said political-based memecoins are “only just getting started” because they can be used to raise funds, incentivize grassroots participation and foster ongoing engagement in political campaigns, “making them a powerful tool for the future of politics and finance.”
MAGA memecoin donations from October 11, 2024. Source: X
Jurica Dujmović, research editor at Weiss Ratings, also said that if PolitiFi memecoins have demonstrable utility, they may survive beyond the U.S. election.
“The fate of these currencies will largely depend on whether they can move beyond their initial premise and develop tangible utility or foster lasting communities.”
Nicholas Passino, co-founder of MAGA MEME PAC, which helped create the Trump-themed MAGA token, told Cointelegraph that “the movement represented by the PolitiFi token is much larger and more widespread than just one election.”
“We believe that tokens that are designed to help certain political movements will be around for a long time to come.”
Dujmovic said that currencies with strong communities that are driven by shared ideological interests or speculative ambitions are likely to survive beyond the election cycle.
Communities are built on shared ideologies rather than values
Dujmović said PolitiFi memecoins offer a novel form of political expression, allowing individuals to “walk their talk.” They also provide a sense of belonging and gamify political participation, which can create powerful networks if incentivized correctly.
Still, as Crypto Rand points out, “developers launched dozens of memecoins of various types in a week,” meaning ideology is unlikely to be the purpose of most PolitFi tokens launched to make a quick buck.
According to decentralized exchange aggregators, 40,000 to 50,000 new crypto tokens are created every day. During periods of intense viral hype, this number can reach 100,000. Solana is the most popular blockchain for these issuances, issuing 17,000-20,000 new tokens per day.
Top 15 blockchains by number of memecoin mining pools launched daily as of March 29, 2024. Source: DexScreener
Kemper acknowledged that so-called “conspiracy coins” do exist, which are well-funded projects started by an inside circle that often pump, dump and repeat. Their “primary purpose is to create and extract value using advanced tools” that only insiders can benefit from, he said.
It can be challenging to filter out projects with real political affiliations from conspiracy coins. Traders should look for projects with long-term viability.
For Dujmovic, the key for creators is to build a currency around a person or idea that can sustain long-term engagement and community interest. Trump’s brand is an obvious candidate given its polarizing presence.
Donald Trump is the king of memes
Among politically based memecoins, those themed after former US President Donald Trump dominate the market.
Kemper said most PolitiFi meme coins are related to Trump because of his populist movement and the solid meme-driven community behind him. Trump's unique ability to attract media attention and drive public discussion makes him a natural focus for speculative tokens.
“Trump’s personality and popularity on social media make him a perfect candidate for a memecoin.”
Dujmović said Kamala Harris’s vice presidency and her current candidacy for president have not generated the same level of speculative enthusiasm in the memecoin market.
Passino said that in his opinion, a PolitiFi meme representing Biden or Harris would not bring much profit because “they represent the opposite of what cryptocurrency represents.”
Still, some coins that mock these politicians still have a chance, as demonstrated by Biden-themed parody memecoin BODEN surging 120% over the past month.
A parody meme from BODEN. Source: X
Dujmovic noted that Trump continued to influence American politics after leaving office in 2021, maintaining an influence unmatched by other politicians.
Dujmovic said that as political careers revive and come back into the spotlight, various memecoins could see renewed interest.
For example, Robert F. Kennedy Jr. could revive his political career after dropping out of the presidential race. Trump has hinted that he might offer Kennedy a Cabinet position.
