Trump-Related Tokens Surge 100% Amid Widespread Appeal Amongst Americans
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Several Donald Trump-related tokens have experienced a 100% surge in price in the past 24 hours across various blockchains, following a February 6 announcement by Mechanism Capital.
Mechanism Capital, an investment firm in the cryptocurrency industry focusing on decentralized finance, declared its investment positions for 2024 and forecast a potential spike in the value of Trump-related tokens and NFTs later this year.
Founder Andrew Kang announced on X (formerly Twitter) that the fund had acquired Trump-related memecoins and NFTs, emphasizing the immediate use of Trump sticker packs.
Trump-Themed Tokens Rocket as Prominent Crypto Fund Bets on Coins Modeled After Ex-President
The former president has been a considerable driver for related crypto trading volume since 2020, data shows.@realDonaldTrump #ibes #Solana #Crypto #trading #BTC #USDC #Bullish $GME $DYM pic.twitter.com/kxyZ3K0siG— 👑KINGSofCOINS💰 (@KINGSofCOIN) February 6, 2024
In light of this, the crypto investment firm has openly embraced Trump-related assets, marking a new trend in the convergence of politics and cryptocurrency.
The firm’s move is viewed as a bold gamble on the political news cycles and public attention leading up to the U.S. Presidential elections.
The strategic maneuver isn’t merely speculation on Trump’s potential victory in the upcoming elections, but a broader anticipation of his capacity to dominate news cycles with his provocative behavior.
Regardless of the election’s outcome, Kang’s strategy is evident—he wants to capitalize on the talk surrounding Trump to yield major returns.
Mechanism Capital Focuses on $TRUMP Tokens
Mechanism Capital is especially focusing on a particular memecoin, the $TRUMP memecoin created by MAGAmemecoin.
According to DEXTools data, $TRUMP has a market capitalization exceeding $100 million and a recorded trading volume of $6.05 million in the last 24 hours.
The memecoin has surged over 49% in the past 24 hours and is currently trading at $2.38.
Additionally, various other Trump meme tokens have experienced a surge in value within the past 24 hours, with some experiencing spikes of up to 100%.
However, these tokens traded on relatively lower liquidity and volume compared to MAGAmemecoin.
In addition, Arkham’s on-chain platform revealed that an identified crypto wallet, believed to be under Trump’s direct ownership or operation, contains over $1 million worth of these TRUMP tokens.
According to Arkham, between August and October last year, the memecoin’s developers sent the wallet $ 7,100 worth of $TRUMP, boosting its value as it became increasingly used as a proxy bet on Trump’s campaign.
Kang also warned against the risks involving meme coins, which include the possibility of Trump dumping all his $TRUMP holdings and renouncing the coin.
This action could either lead to its immediate demise or follow a trajectory similar to that of $DOGE/$SHIB.
According to Kang, the $DOGE founder dumped all tokens and disavowed the project, while Vitalik Buterin sold off $SHIB tokens. Regardless, both coins demonstrated resilience despite these setbacks.
Overall, this is the first memecoin Kang has encountered that he believes has the potential to compete with Doge/Shib.
A Recurring Phenomenon
The use of digital assets for political speculation has been around for a while. For instance, during the 2020 election period, FTX hosted a sequence of prediction markets offering TRUMPWIN or TRUMPLOSE tokens for traders to buy.
The now-defunct crypto company invited investors to wager on the election’s outcome. If Trump had emerged victorious, these tokens would be valued at $1. However, since he lost, the token fell to $0.
Leading up to the election, the TRUMP and BIDEN tokens collectively amassed a trading volume of nearly $4 million, with over $2 million exchanging hands in the days after the White House’s announcement of Trump’s Covid diagnosis.
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