MAGA, HORRIS and Other PoliFi Tokens Drop After US Elections

The crypto market appears to be losing interest in Political Finance (PoliFi) memecoins a day after Donald Trump was elected president of the United States.

MAGA, the Trump-themed PoliFi token considered the creator of the genre, has lost nearly 49% of its value on the day and nearly 50% in the past week. Kamala Harris-themed Kamala Horris (KAMA) fell 75% in the same period.

In theory, PoliFi tokens should rise whenever there is a positive event regarding the candidate they are associated with.

Mechanism Capital’s Andrew Kang said shortly after the MAGA token launched in February that Trump-themed PoliFi tokens benefit from Trump’s media presence and that Trump “is one of the best attention monopolists in the world.”

Stating at the time that the token could be part of the “sell the news” tactic, Kang maintained his optimism about the token after the election.

However, he added that he expects a period of consolidation following the election victory, similar to what Dogecoin was after being associated with Elon Musk.

Currently, the MAGA token is literally struggling to reach higher liquidity levels as it is not listed on major centralized exchanges (CEX).

The token, which is traded on exchanges with relatively lower volumes such as Gate.io, MEXC and BingX, is not listed on Kraken, Bybit and OKX.

Traders may be favoring BTC after the election, as Bitcoin has surpassed its all-time high and some bullish market observers are calling for $100k by the end of the year. According to CoinGecko data, memecoins, which increased by 12 percent during the day, may also decline if traders shift to BTC.