Massive Volatility of Meme Coins as Joe Biden Drops US Presidential Race: Details

TL;DR

President Joe Biden said he will not run in the US presidential election, endorsing Vice President Kamala Harris as the Democratic nominee, with significant support from the party. The disclosure sparked volatility in the cryptocurrency market, with Biden-related meme coins plunging and a Harris-related token surging nearly 90%.

The Biden effect

The current President of the United States of America, Joe Biden, took office on July 21 after announcing that he will not seek re-election in November of this year. His decision follows uproar from a number of high-profile members of the Democratic Party who urged him to stay out of the fray because of his lackluster performance in the public debate against Donald Trump last month.

Additionally, multiple reports revealed that the POTUS tested positive for COVID-19 a few days ago, another setback that adds to his seemingly worrying health status recently.

Vice President Kamala Harris was endorsed by Biden to take her place as the Democratic nominee in the election. Many members of the party supported the choice.

Somewhat expected, Biden’s disclosure had a huge impact on the cryptocurrency market, especially in the realm of meme coins. Listings related to the current political leader, such as Jeo Boden (BODEN), dipped by double digits.

BODEN Price, Source: CoinGecko

On the other hand, Kamala Horris (KAMA), a VP-related meme coin, exploded almost 90% to hit an all-time high of over $0.02.

MAGA (TRUMP), an asset linked to Republican candidate Donald Trump, also saw higher volatility. Its price shot up substantially minutes after the announcement, but began to retreat in the last few hours. It is currently trading around $6.80 (according to CoinGecko data), down 7% on a 24-hour scale.

Be aware of the risks involved

The huge volatility witnessed by the aforementioned meme coins comes as another warning that traders should approach the sector after due diligence and invest only as much as they are willing to lose.

While there are numerous examples of people who became millionaires in a short period of time due to the explosion in the price of a certain meme coin, there are also those who suffered crucial financial losses after entering in the ecosystem at the wrong time.

Those about to jump on the bandwagon should check out our dedicated video to guard against some common mistakes on the matter:

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