As the U.S. gears up for the upcoming elections, speculation swirls around how a Donald Trump presidency could impact the vibrant yet volatile world of memecoins. According to Omid Malekan, an adjunct professor at Columbia Business School, Trump’s win would likely be “bearish” for memecoins, viewing them as a reflection of economic populism. “Memecoins themselves are a form of economic populism,” Malekan noted in an October 26 post on X. He argues that a shift towards “regulatory sanity” could redirect focus in the crypto space toward decentralized applications (DApps) and away from the speculative nature of memecoins, potentially leading to a prolonged bear market.
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Regulatory Changes Could Influence the Memecoin World
Memecoins currently boast a staggering market capitalization of $61 billion, according to CoinGecko. As Malekan pointed out, a Republican sweep might restore initial coin offerings and fully open token airdrops, countering the pressures from the SEC and figures like Senator Elizabeth Warren. Nic Carter, a partner at Castle Island Ventures, echoed this sentiment, stating that the need for memecoins diminishes when the SEC eases regulations.
While Malekan’s analysis paints a rather grim picture for memecoins, some industry players are more optimistic. They argue that a Trump victory could actually fuel renewed enthusiasm for altcoins, thanks to his pro-crypto promises. This has left many wondering whether the market might rally if his campaign rhetoric translates into favorable policies.
Some Argue That Politics Don’t Matter to Memecoin Buyers
Contrastingly, not everyone agrees with Malekan’s take. According to CoinTelegraph, memecoin bull Murad Mahmudov insists that political matters are irrelevant to most memecoin buyers. “Ninety-nine percent of memecoin buyers couldn’t care less about politics,” he stated, emphasizing that their popularity is tied to the ever-increasing global money supply. Crypto trader Jordan Fish, known as “Cobie,” believes that memecoins appeal to those seeking quick gains, explaining that “it is (almost) impossible for a normal person to buy a non-memecoin ‘early’ anymore.”
Polling Signals Shifting Voter Sentiment
With just eight days until the Nov. 5 elections, the race remains tight. A recent Coinbase poll revealed that two-thirds of crypto owners in key swing states are eager to back a pro-crypto candidate, with Trump and Democratic nominee Kamala Harris nearly neck and neck in the polls, according to FiveThirtyEight data from October 27.
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