In summary
- Former President Donald Trump survived another alleged assassination attempt over the weekend.
- Trump-related political meme cryptocurrencies plummeted over the week.
- Traders questioned the relationship between meme Cryptocurrency prices and relevant news events.
Former President Donald Trump survived another alleged assassination attempt over the weekend. But this time, political meme cryptocurrencies related to the Republican candidate plummeted over the week, leading some traders to question the relationship between meme cryptocurrency prices and relevant news events.
Following the first assassination attempt on Trump, Solana meme coin TREMP surged 71% in the following 24 hours, with TRUMP up 39% and MAGA also climbing 33%. In contrast, TREMP is down 5% over the past 24 hours, TRUMP is down 19%, and MAGA is down just 1% since Sunday’s attempted attack. Weekly losses were even worse, according to data from CoinGecko.
This has sparked a debate over whether political meme coins have begun to lose their luster as the US presidential election approaches.
“Realistically, that event should have been a catalyst for an increase in buying volume, however, no one was interested,” the trader known as Bastille told Decrypt. “[I think it’s]just a general deterioration of retail interest towards a saturated metaverse.”
While the aforementioned meme coins are three of the largest unofficial tribute tokens tied to Donald Trump, there are countless smaller coins out there, but there has been no consistency in how they reacted to the golf course attack. For example, Fight to MAGA (FIGHT), a token created as a result of the first assassination attempt, was up 13% on the day. Meanwhile, Pepe Trump (PTRUMP) fell by almost 18%.
Political meme coins, by nature, are likely to be most relevant during election season and could lose a lot of attention once that date passes. Traders call these coins “event coins,” meaning they are more strongly affected by price action as they get closer to the set date. Another example is the anniversary of the 9/11 attacks.
“People sell out of impatience when they realize the price is not being actively impacted by the outcome or event,” the meme cryptocurrency trader known as 0xWinged told Decrypt. “Always avoid those coins. I do.”
Bastille also claims that large political memecoins are full of overexposed whales looking to exit as soon as they can. As elections approach, these whales will seek liquidity to exit. In other words, attention-grabbing events, such as an assassination attempt, become ideal times for whales to dump their holdings.
Moreover, this attempt was less surprising and flashy than the first one, traders said. The attempt in July was broadcast live on television with an iconic photo that spread around the world, even reaching the largest cryptocurrency game on Telegram.
“The hype and randomness of the (first) assassination attempt saw multiple memecoins surrounding this send in the hundreds of millions,” Bastille explained. “This cannot be repeated.”
Trump’s odds of winning the presidential election against Kamala Harris also remained unchanged on crypto prediction market Polymarket from 24 hours ago, with Harris leading Trump 50% to 49% amid only slight variations over the course of the week.
Edited by Andrew Hayward
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