Donald Trump-themed tokens retreated on Friday even after Joe Biden’s chances of re-election faded. MAGA (TRUMP), a token with a market cap of over $370 million, dropped by 1.5%. Similarly, MAGA Hat (MAGA) token retreated by over 30% while Super Trump (STRUMP) fell by 18%.
The same scenario is playing out in the stock market, where the Trump Media & Technology (DJT) rose by just 3%, erasing most of the gains it made during the pre-market session.
This performance happened after Joe Biden delivered an underwhelming performance in his first debate with Donald Trump. In the aftermath, many notable Democrats and vocal Biden supporters recommended that he step aside for a fresh candidate. Writing for the New York Times, Paul Krugman said:
“Given where we are, I must very reluctantly join the chorus asking Biden to voluntarily step aside, with emphasis on the “voluntary” aspect.”
In another piece, Thomas Friedman wrote:
“They – Biden and his team – have been holed up at Camp David preparing for this momentous debate for days now. If that is the best performance they could summon from him, it’s time for Joe to keep the dignity he deserves and leave the stage at the end of this term.”
MAGA vs STRUMP vs TRUMP
Therefore, these tokens retreated because the odds of Biden dropping out of the race before the Democratic Convention have risen.
Such a move will likely see Trump competing with a younger Democratic candidate, who has a better chance of winning. Some of the proposed names include Kamala Harris, Gavin Newsom, and even Michele Obama.
To a large extent, most of the Trump-themed tokens like MAGA, STRUMP, and TRUMP have done well this year because of his lead against Biden. This lead will likely widen after the debate, pushing Biden to withdraw from the race.
These tokens also retreated as the crypto industry remained under pressure. Bitcoin’s attempts to recover have faded at $62,000 while its double-top pattern points to more downside, at least in the near term.
