Omid Malekan, chief interpreter and visiting professor at Columbia Business School, said: in the run-up to the US election, the discussion about the impact of the political outcome on the crypto market is becoming increasingly lively. One of the hot topics is the possible impact of #donaldtrump and Republican victory on the meme-token market. In his opinion, such a development of events can lead to a decrease in the popularity of these assets.
According to the expert, meme cryptocurrencies have become a symbol of economic populism. They often represent a protest against large projects that are backed by venture capital funds and characterized by non-transparent tokenomics. These assets are largely aimed at a broad audience, and their appeal lies in their accessibility and lack of significant control by large players. However, proponents of a more liberal approach to crypto regulation believe that this situation was the result of a tough stance by the SEC under Gary Gensler and active pressure from Senator Elizabeth Warren.
If the Republicans win, this could lead to a relaxation of regulation, which would open the way for the return of classic ICOs, as well as ensure the availability of airdrops for all US users. With a more liberal approach, perhaps the geo-blocking and VPN restrictions that many crypto projects are now forced to implement in order to comply with the SEC's strict requirements will disappear. This could mean a return to a fairer and more understandable tokenization model, which in turn would reduce the appeal of meme tokens.
Additionally, with a Republican victory, the practice of applying “fee switches” and paying dividends on digital currencies - economically sound measures that return profits to cryptocurrency holders - could return.
“Mem-tokens,” by contrast, lack such mechanisms, making them more speculative and less sustainable in the long term. A return to 'economic sanity' in cryptocurrencies could lead to a reallocation of investor interest from memcoins to more serious projects, including decentralized applications and platforms (dApps) that have real-world applications,” Malikan assured.
