what meme coin presales reveal about Trump and Harris

In the cryptocurrency world, Token Creation Events are key moments when a project creates and then distributes its tokens to early backers, investors, or the public. Ahead of upcoming TGEs, projects often offer speculative future value in exchange for early acquisition, but most investors understand that the reality can be much less predictable.

The US election race closely mirrors token presales, where candidates’ promises resemble projected coin values ​​exchanged for early support; Just as investors back tokens that predict future gains, voters make commitments based on a candidate’s perceived future potential.

Similar to crypto projects, candidates are generating excitement and raising both real and symbolic funds in the form of voter support, while making big promises about what they will deliver if elected. Trump and Harris’ strategies resemble not only typical token launches but also meme coin presales, aiming to maximize voter participation with promises of big returns in the form of policies and reforms.

Just as meme coin investors are wooed by hype and promises of quick returns, voters are often attracted to candidates who make promises that seem like shortcuts to overnight success, but often disappoint supporters when those promises fall short.

Nozzle market overview

As of the time of this writing, the total market value of meme coins has reached 75.3 billion dollars.

Dogecoin is the leader with a market value of $20.26 billion, followed by Shiba Inu with $10.44 billion and PEPE with $4.08 billion. According to Coinranking data, 54% of the 7,623 currently listed memecoins have made gains this year, indicating continued interest in these fun digital assets.

Source: Marketvector

Looking at the meme coin index, which tracks the performance of leading meme-based cryptocurrencies, shows peak annual growth of 233.12% in mid-March 2024, with continued volatility throughout the year.

Following the increase, the market faced sharp corrections, especially in June and July, and stabilized towards the last quarter. Latest readings show an impressive 118.99% increase YTD, indicating that meme coins have significantly retained investor interest. However, with an annual volatility rate exceeding 100%, the index reflects the highly speculative nature of the meme coin sector, where fundamental analysis is almost irrelevant.

Source

Harris steps out in fundraising as crypto billionaires choose sides

As of October 2024, Vice President Kamala Harris has expanded her lead over Donald Trump in fundraising. His campaign reported raising $997.2 million since January 2023, compared to Trump’s $388 million. In the first half of October alone, Harris raised $97.2 million, far exceeding Trump’s $16.2 million. Contributions to Harris came primarily from California, which contributed over $131 million, followed by New York and Massachusetts.

Source: Fec.gov

The biggest support for Trump, meanwhile, came from Virginia, which contributed over $39 million, along with California and Texas, reflecting regional funding strength.

Source: Fec.gov

Several pro-crypto billionaires have also taken sides in the upcoming elections. Gemini’s founders, the Winklevoss twins, donated $10.1 million to Trump, mostly due to their opposition to the Biden administration’s crypto policies. In response, Ripple co-founder Chris Larsen supported Harris, pledging $10 million worth of XRP. Tim Draper split his donations between both candidates, while Elon Musk donated $75 million to a pro-Trump PAC.

Trump and Harris’ meme-inspired strategies

Just as token presales rely heavily on building excitement before a token launch to attract investors, Trump and Harris are generating buzz and gaining voter momentum with bold, often populist promises.

Trump, who has previously described Bitcoin as a ‘scam’ and a ‘disaster waiting to happen’, announced that he would ‘immediately appoint a Bitcoin and crypto presidential advisory council’ and create a ‘national Bitcoin stockpile’ if he wins the elections in November. .’ Apparently aware of the significant electoral potential in the crypto industry, Trump has undergone a transformation in Damascus – a complete reversal in attitude – now embracing crypto with such enthusiasm that he has vowed to make the US the ‘crypto capital of the planet’.

Harris, meanwhile, is capitalizing on social and progressive excitement, similar to how new meme coins attract niche communities, after pledging to “promote innovative technologies like Artificial Intelligence and digital assets.” A recent example is his ‘Opportunity Agenda for Black Men’ initiative, where he advocates for pro-crypto policies targeting Black investors, noting that 20% of them currently own or have cryptocurrency assets.

Still, skeptics have begun to question whether Black Americans’ interest in digital assets is as strong as it seems, arguing that much of Harris’ narrative about cryptocurrency as a tool for economic empowerment may have been exaggerated. According to Molly White’s analysis of the survey cited by Harris, crypto ownership among non-white Democrats is higher than among white Democrats; 22% of Black Democrats report purchasing crypto. However, 72 percent do not see this as positive for the economy. Additionally, only 18% of Democrats overall have purchased crypto, with ownership peaking among Hispanic and AAPI voters. These factors complicate Harris’ pro-crypto agenda because crypto’s appeal among key demographic groups may be overstated.

So, when viewed through the lens of the meme coin TGE cycle, can you now see how both campaigns reflect the over-the-top promises often seen in the crypto world? In my previous article, I explored the history of both candidates’ crypto promises in more detail.

Bonk and Beercoin as Political Parallels

Meme coins like Bonk (BONK) and Beercoin (BEER) provide insight into the industry’s short-term excitement and long-term challenges. Bonk launched on Solana with a $1.3 million airdrop in early 2023, aiming to engage the community and generate excitement. Solana became the first meme coin on the blockchain and distributed 50% of its total supply to the public to create buzz. After initial excitement, BONK reached its peak price of $0.00004547 on March 4, 2024, but soon encountered sharp corrections typical of meme coins. As of this writing, BONK is trading 51.5% below its all-time high, but with a trading volume of $215 million, it reflects the ongoing excitement as well as risks in this speculative sector.

Beercoin, on the other hand, promised bonuses of up to 20% in its $5 million pre-sale event. But its long-term performance has struggled to meet initial promises. By October 2024, the situation worsened when ByBit announced the delisting of the 1000BEERUSDT perpetual contract.

Although Beercoin framed the move as a step towards justice and described it as a “long-term win for the entire Beercoin community,” disappointed users accused the project of broken promises; This is an outcome that resonates with the unfulfilled political promises that voters often experience.

Solution

Just as meme coins face volatility and unfulfilled promises after their TGEs, political campaigns often struggle to deliver on their big promises post-election. Both meme coins and politicians thrive on initial enthusiasm but eventually face real-world challenges that test their staying power. Trump and Harris, like meme coins, are in the business of creating buzz; They throw spaghetti at the wall to see what sticks. But unlike crypto projects trying to gain market attention, these candidates are competing for something equally uncertain: voters’ trust and loyalty.

Mike Ermolaev

Mike Ermolaev is the founder and CEO of Outset PR, a leading agency known for disruptive PR initiatives that create meaningful impact in the blockchain, Web3 and AI industries. Regularly featured in leading publications, Mike shares his keen insight into crypto market opportunities and potential risks, blending in-depth research with refreshingly simple explanations. Mike also moderated the Crypto Opinion interview series; He held incredible sessions with influential figures like Ripple and Tether executives, rocker Matt Sorum, and even Prince Philip of Serbia, and shared his special insights with readers.