TL;DR
President Joe Biden said he will not compete in the US presidential elections, endorsing vice president Kamala Harris as the Democratic nominee, with significant party support.
The disclosure caused volatility in the cryptocurrency market, with Biden-related meme coins dropping and a Harris-related token surging by nearly 90%.
The Biden Effect
The current President of the United States of America – Joe Biden – made the headlines on July 21 after announcing he won’t seek re-election in November this year. His decision follows the uproar from numerous high-profile members of the Democratic party who urged him to stay out of the battle due to his unsatisfactory performance in the public debate against Donald Trump last month.
In addition, several reports revealed that the POTUS tested positive for COVID-19 a few days ago, another setback adding to his seemingly worrying health condition as of late.
Vice President Kamala Harris received Biden’s backing to take his place as the Democratic nominee in the elections. Many party members reportedly supported the choice.
Somewhat expected, Biden’s disclosure had a huge impact on the cryptocurrency market, particularly the meme coin realm. Tokens related to the current political leader, such as Jeo Boden (BODEN), plunged by double digits.
BODEN Price, Source: CoinGecko
On the other hand, Kamala Horris (KAMA) – a meme coin related to the VP – exploded by nearly 90% to reach an all-time high of over $0.02.
MAGA (TRUMP) – an asset linked to the Republican candidate Donald Trump – experienced enhanced volatility, too. Its price soared substantially minutes after the announcement but started retracing in the past few hours. Currently, it trades at around $6.80 (per CoinGecko’s data), a 7% decline on a 24-hour scale.
Beware the Risks Involved
The huge volatility witnessed by the aforementioned meme coins comes as another warning that traders should approach the sector after proper due diligence and invest only as much as they are ready to lose.
While there are numerous examples of people becoming millionaires in a short period of time due to the price explosion of a certain meme coin, there are also those who suffered crucial financial losses after entering the ecosystem at the wrong moment.
Those who are about to hop on the bandwagon should take a look at our dedicated video to protect themselves from some common mistakes related to the matter: