In my humble opinion, as someone who has navigated the choppy waters of both the crypto world and the realm of public relations, I can’t help but draw parallels between political campaigns and meme coins. Much like Bonk and Beercoin, candidates like Trump and Harris often ride a wave of initial excitement, promising the moon and the stars to their respective audiences.
In the realm of cryptocurrency, Token Generation Events (TGEs) represent significant milestones where a project launches and disseminates its tokens to initial backers, investors, or the general public. Prior to their TGEs, projects frequently entice early investment by promising potential future worth, but it’s crucial for investors to understand that the actual outcome can be quite unpredictable.
In the U.S. election, the competition between candidates is similar to a pre-sale of digital tokens, where the pledges made by candidates are comparable to the projected values of coins offered in exchange for early support. Voters make their choices based on each candidate’s perceived future success, much like investors who buy tokens expecting potential profits down the line.
In a similar vein to crypto initiatives, contenders generate enthusiasm and collect both tangible and intangible resources (voter backing) as they make extravagant pledges about what they will accomplish if victorious. Trump and Harris’ tactics mirror not just traditional token launches but the pre-sales of meme coins, striving to secure maximum voter investment with assurances of substantial rewards in terms of policies and changes.
Much like how meme coin investors can be lured in by hype and the allure of swift profits, people often find themselves drawn to political candidates who propose solutions that seem like immediate paths to success. However, these quick-fix promises often fail to deliver as intended, leaving supporters feeling disappointed when they realize their aspirations weren’t met.
Meme market overview
As of this writing, the total market capitalization of meme coins has reached $75.3 billion.
As an analyst, I find myself observing a fascinating market landscape in the world of meme coins. Dogecoin, with its impressive market capitalization of $20.26 billion, stands out as the undisputed leader. Close behind is Shiba Inu, boasting a market cap of $10.44 billion. PEPE, though trailing slightly, still holds a significant presence at $4.08 billion. According to data from Coinranking, approximately 54% of the 7,623 meme coins currently listed have seen gains this year, indicating a persistent enthusiasm for these lighthearted digital assets.
Examining the meme coin index, a tool that monitors the development of top meme-driven cryptocurrencies, reveals an impressive 233.12% increase in value from the start to mid-March 2024. This growth has been steady, with fluctuations characterizing its performance throughout the year.
Following a spike, the market experienced notable downturns, predominantly during June and July, only to eventually settle by the last quarter. The most recent data indicates a remarkable 118.99% Year-to-Date (YTD) growth, implying that meme coins continue to captivate investor attention. However, with an annualized volatility rate surpassing 100%, this index underscores the highly speculative character of the meme coin market, where traditional analysis based on fundamentals holds minimal significance.
Harris surges ahead in fundraising as crypto billionaires pick sides
Come October 2024, it’s clear that my investments in Vice President Kamala Harris’ campaign are proving fruitful. Her fundraising efforts have significantly outpaced those of Donald Trump. Since January 2023, her team has managed to accumulate an impressive $997.2 million, while Trump has only gathered $388 million. In the first half of October, Harris’ fundraising skyrocketed to $97.2 million, dwarfing Trump’s $16.2 million. The support for Harris has been particularly robust in California, contributing over $131 million, closely followed by New York and Massachusetts.
In addition, Trump received significant backing, amounting to more than $39 million, primarily from the state of Virginia, as well as California and Texas. This financial support demonstrates Trump’s regional financial advantages in these areas.
As an analyst, I’ve observed that prominent figures within the cryptocurrency sphere have expressed their political preferences ahead of the upcoming election. The Winklevoss twins, creators of Gemini, have contributed $10.1 million to Trump’s campaign, primarily due to their disagreement with the Biden administration’s proposed crypto policies. On the other hand, Chris Larsen, co-founder of Ripple, has endorsed Kamala Harris and pledged XRP worth $10 million in her support. Tim Draper, a well-known figure in the crypto world, has chosen to divide his donations between both candidates, while Elon Musk contributed a substantial $75 million to a pro-Trump Political Action Committee (PAC).
Trump and Harris’ meme-inspired strategies
As a crypto investor, I find that token presales thrive on creating a buzz before the token’s launch by enticing potential investors. Similarly, during political campaigns, candidates like Trump and Harris generate excitement and gather momentum among voters by making audacious, sometimes populist, pledges.
In a surprising turn of events, Trump – who once referred to Bitcoin as a ‘scam’ and a ‘disaster waiting to happen’ – declared that if elected in November, he would swiftly set up a Presidential Advisory Council for Bitcoin and cryptocurrencies, and create a ‘national Bitcoin reserve.’ Recognizing the influential voter base within the crypto sector, Trump appears to have undergone a dramatic change of heart, now ardently supporting cryptocurrencies to such an extent that he vows to transform the United States into the ‘global leader’ in crypto.
In a similar vein to how new meme coins draw specialized communities, Harris vows to promote groundbreaking technologies such as AI and digital currencies, having recently declared her support for this. This is evident in her ‘Opportunity Agenda for Black Men’ initiative, where she champions crypto-friendly policies tailored towards Black investors, acknowledging that approximately one fifth of them already possess or have previously owned cryptocurrency assets.
Despite Harris’s claims about cryptocurrency serving as a means for economic advancement among Black Americans, some critics are expressing doubts, suggesting that her narrative might be overstated. Molly White’s examination of the poll Harris referenced indicates higher crypto ownership among non-white Democrats compared to white ones, with 22% of Black Democrats reporting they have invested in crypto. However, a majority (72%) of these non-white Democrats do not view it favorably for the economy. Moreover, only 18% of Democrats overall have bought crypto, with the highest ownership found among Hispanic and Asian American Pacific Islander (AAPI) voters. These findings cast doubt on Harris’s pro-crypto stance, as it appears that the interest in cryptocurrency within key demographics might not be as strong as initially perceived.
Looking at the Initial Token Generation Event (TGE) process for meme coins, doesn’t it seem familiar to the exaggerated claims typical in the crypto sphere? I delved deeper into the history of each candidate’s crypto promises in my previous article.
Bonk and Beercoin as Political Parallels
Meme tokens like Bonk (BONK) and Beercoin (BEER) provide a glimpse into the industry’s temporary excitement and long-term difficulties. In the early part of 2023, Bonk made its debut on Solana and distributed a $1.3 million airdrop to spark interest and create buzz within the community. It marked the introduction of meme coins on the Solana blockchain by giving half of its total supply to the public. Following the initial wave of excitement, BONK reached a maximum price of $0.00004547 on March 4, 2024, however, it subsequently experienced typical corrections common in meme coins. As we speak, BONK is trading 51.5% below its all-time high, but with a trading volume of $215 million, this suggests ongoing interest while also highlighting the inherent risks associated with investing in such a speculative market.
However, Beercoin advertised bonuses as high as 20% during its pre-sale event worth $5 million. Nevertheless, over time, its performance didn’t live up to the initial expectations. Matters worsened by October 2024 when ByBit declared they would remove the 1000BEERUSDT perpetual contract from their platform.
As a researcher exploring the Beercoin project, I’ve observed a shift in their recent actions, which they’ve labeled as a step towards fairness and a “long-term win for the entire Beercoin community.” However, this move has sparked dissatisfaction among users who perceive it as a broken promise, an experience that echoes the disillusionment many voters feel when political promises remain unfulfilled.
Conclusion
In a similar vein, just like meme tokens can experience volatility and unfulfilled expectations following their Token Generation Events (TGEs), political campaigns frequently find it challenging to realize their grand promises after elections. Both meme coins and politicians capitalize on initial enthusiasm, yet they both encounter real-world hurdles that test their resilience in the long run. Similar to crypto projects aiming for market acceptance, these candidates are competing for something equally uncertain: the trust and commitment of voters.
Mike Ermolaev serves as the founder and chief executive officer of Outset PR, a groundbreaking agency renowned for its innovative public relations strategies that make significant waves in the blockchain, Web3, and artificial intelligence industries. Frequently spotlighted in leading publications, Mike showcases his keen understanding of crypto market trends and associated risks, skillfully combining thorough analysis with easy-to-grasp explanations. Additionally, Mike conceptualized the Crypto Opinion interview series, securing high-profile conversations with key figures such as executives from Ripple and Tether, musician Matt Sorum, and even Prince Philip of Serbia – offering unique perspectives to readers.
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2024-11-04 19:51