US Elections and the Future of Meme Coins: What's in Store for the Market?
Date: 2024-10-29 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
Many experts believe that Donald Trump's victory could change the direction of meme coins. However, opinions on how exactly this will affect the sector remain controversial.
Omid Malekan, a professor at Columbia Business School, believes that interest in meme coins arose amid dissatisfaction with the current token distribution system, which is often focused on venture capital funds and insiders. In his opinion, Trump's return to the White House will lead to "Republican reform" that will support the ideals of transparency and accessibility, for example, in the form of the return of ICOs and open airdrops.
Malekan suggests that the weakening of the Democrats' position will lead to the softening of some regulatory norms. This, in turn, will open up opportunities for the redistribution of fees and dividend payments, which will support more valuable tokens and cause a decrease in interest in meme coins. “Mem coins are attractive due to a fairer distribution, but their real value remains questionable. When regulation allows more useful tokens to develop, interest in memes falls,” the expert says.
Nick Carter, founder of Coin Metrics, expresses a similar point of view, believing that the popularity of meme coins is partly due to strict regulation by the US Securities and Exchange Commission (SEC). He is confident that if the regulator’s position is softened, the need to buy meme tokens will decrease.
However, there are critics who disagree with this position. According to analyst Murad, the growing interest in meme coins is more closely related to the increase in the global money supply than to political events. “Buyers of these tokens are often not interested in profitability and commission mechanisms, they come to cryptocurrency for ‘quick profits’. With the increase in the money supply, greed only increases, pushing any fundamental indicators into the background,” the analyst explains.
Solana Labs co-founder Anatoly Yakovenko sees the popularity of meme coins in the psychological aspects of trading. According to him, “trading such assets for many is entertainment, a kind of popularity contest, and not serious investment.” Trader Cobie also believes that the desire to buy assets with growth potential pushes users to buy meme coins, despite the possible easing of regulation under Trump.
Today, the meme coin market remains stable, and their total capitalization is about $62.4 billion, despite the debates and political uncertainty.
