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Omid Malekan, a lecturer at Columbia Business School, predicted that the meme coin industry would suffer if Trump won the election. The expert saw that investor interest in meme currencies has surged due to dissatisfaction with the tokenomics of venture-backed projects. The Republican Party's potential rule changes enabling token holders to profit from fees and dividends during Trump's presidency might dampen demand for meme currencies.
To further ingratiate myself with Solana fans, here's an argument of why a Trump win and/or Republican sweep (which Polymarket has at 50%) is bearish memecoins.
— Omid Malekan 🧙🏽♂️ (@malekanoms) October 27, 2024
i) Memecoins themselves are a form of economic populism. They are a statement against the unfair ( and often grifty)…
Nic Carter, co-founder and general partner of Castle Island Ventures, predicted that if the Republicans were to win the election with Donald Trump as their candidate, the popularity of meme coins—which have evolved into a reaction to the SEC's strict policies—would decline. In his remarks, Professor Omid Malekan of Columbia Business School had this to say about the article: In his message, he urged the Solana project's neighbors to back Democratic presidential candidate Kamala Harris.
According to Malekan, a "bearish" element for meme currencies will be more regulation of the crypto space in the US. Carter backed him up, stating that meme coins' demand would fall if the SEC changed its stance but that speculative interests would ensure that the market remains active.
These statements elicit varying reactions from people. According to blogger and influencer Murad, the election outcomes will have little to no impact on the meme coin industry since its development is driven by economic rather than political factors. Jordan Fish, also known as Cobie, is another well-known blogger who disagrees with Malekan and Carter. He stresses that regular traders are still interested in meme currencies since they can't join big initiatives initially.
The meme coin sector is the fastest-growing crypto sector in 2024, expanding over 1800% since January. Meme currencies connected with Donald Trump have increased in circulation and price before the election. Its capitalization is low compared to the meme coin market. Coingecko estimated its size at $1.2 billion, 2.4% of the market, with just four companies worth more than $100 million. However, this did not stop the crypto community from noticing them.
Trader and Sistine Research CEO Forrest Przybysz said meme coins' appeal depends on attention cycles, and the more attention they get, the greater their worth. Thus, if Trump's electoral promises come true, bitcoin will thrive in America. Meme currencies may not be useful or strategic for the decentralized financial sector. The crypto market may see volatility as the U.S. presidential elections near. Exactly what type of volatility is unknown.
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