Many experts believe that the impact of Donald Trump on the crypto market could be more significant than that of Kamala Harris. However, the effect on meme coins specifically is still up for debate.
Columbia Business School professor Omid Malekan suggests that a Trump presidency may have a negative impact on the meme coin sector. He argues that meme coins are a form of economic populism, representing a statement against what is perceived as unfair practices in traditional venture-backed projects.
Malekan’s viewpoint is supported by Nic Carter, the co-founder and general partner of Castle Island Ventures. Carter believes that meme coins have emerged partly in response to the strict policies of the U.S. Securities and Exchange Commission (SEC). If Trump were to win and change certain rules favoring traditional crypto assets, interest in meme coins could decline.
On the other hand, there are differing opinions within the crypto community. Some, like blogger Murad, argue that the growth of meme coins is primarily driven by economic factors rather than political ones. Similarly, Jordan Fish, known as Cobie, highlights that many ordinary traders are drawn to meme coins due to limited access to early-stage investment opportunities in larger projects.
The meme coin sector has experienced rapid growth in 2024, with some coins associated with Donald Trump seeing a surge in volume and price leading up to the U.S. election. Despite their relatively small market capitalization compared to the overall crypto market, meme coins have captured the attention of the crypto community.
Forrest Przybysz, a trader and CEO of Sistine Research, explains that meme coins thrive on attention cycles, with figures like Trump attracting significant interest. Yan Liberman, co-founder of Delphi Digital, likens meme coins to collectibles that allow for the monetization of public attention.
While a Trump presidency could potentially fuel a cryptocurrency boom, the future of meme coins remains uncertain. These coins may lack practical utility and strategic significance for the broader decentralized finance market. As the U.S. presidential elections draw nearer, the crypto market is likely to experience volatility, although the exact nature of this volatility remains unpredictable.