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PolitiFi Pops Off

A more active scene around political tokens has created a new betting arena for degens.
Jack Inabinet Jack Inabinet May 31, 20242 min read
market analysis PolitiFi Pops Off

A Liquid Election. Trump was convicted on 34 felony counts yesterday in a saga very much unrelated to crypto, yet one that still managed to trigger rampant activity within crypto’s burgeoning PolitiFi token scene. Why is this sector destined to continue providing lucrative trade opportunities and abundant volatility in the coming months?

Immediately upon news of Trump’s conviction, Ethereum’s TRUMP and Solana’s TREMP, the two most-established memecoins associated with the former President, cratered, plunging by over 20% in the minutes that followed the announcement. Meanwhile, the lone widely popular Joe Biden memecoin, BODEN, experienced the opposite effect, gaining nearly 30% as crypto market participants initially perceived the verdict to be a bullish catalyst for the token.

After the initial shock subsided, holders’ fortunes quickly reversed; Trump-associated coins painted their charts with double-digit bullish reversals as BODEN slid lower to retrace the entirety of its gains. Beyond the established tokens, a variety of fresh coins launched to commemorate the event, and although none appear to have been able to gain lasting traction.

Source: DEXScreener

While PolitiFi tokens have since come off their local extremes, yesterday’s events nonetheless highlighted the type of erratic behavior we can expect from the sector leading up to the November general election.

Crypto degens love to speculate on opportunities that could result in profit and global attention is bound to be tuning into the most important events of this election cycle given the contentious state of U.S. politics, meaning the upcoming June 27 Presidential debate, Trump’s July 11 sentencing hearing, and the election itself are likely to present immense amounts of volatility for traders!

Further, considering that crypto has increasingly become an election issue, with both campaigns engaging the industry and taking public policy stances on controversial issues, it would not be surprising to see PolitiFi tokens increasingly come into the mainstream as routes to speculate on the outcome of the election. 

Jack Inabinet

Written by Jack Inabinet

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Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial apartment development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business and remains based out of the Seattle area.

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