How Trump’s Presidency Will Fuel the Memecoin Space
How Trump’s Presidency Will Fuel the Memecoin Space
As the world counts down to the beginning of Trump’s second term in office, the crypto space is in a very unique position. Trump had marketed himself as the best candidate for the crypto sector and now that he has won, many are watching to see if he will keep his promises.
From all indications, the meme coin space especially will benefit from Trump being in office, even as the industry as a whole is looking towards a new era. But how can Trump’s administration help the already-controversial asset class?
The Meme Coin Debacle
Meme coins occupy a unique place in the crypto industry that sometimes leads to controversy. You see, they are assets based on memes, lore, and pop culture references. For context, several of the biggest meme coins in the industry are all based on the meme of a Shiba Inu dog looking nervously at the viewer. Other meme coins include those based on Pepe the Frog, TV shows, world events, and so on. Naturally, meme coins have ridiculous names, aesthetics, and backstories that can be hard to take seriously.
But despite all of these, meme coins have been wildly successful among investors. The top meme coin Dogecoin (based on the Shiba Inu meme) is within the top 10 cryptos by market cap. And if 2024 proved anything, it is that the public is hungry for meme coins. Presales for new tokens like Pepe Unchained raised millions and are pegged to make a high debut. And as Alan Draper writes, investors looking for the best crypto to buy are often turning to these meme coins to get their needs met.
Because meme coins are as controversial as they are successful, investors were cautious leading up to the US presidential election and speculated about how they would fare in a Trump presidency.
In Comes Trump
One thing that was markedly different about this latest campaign trail is that cryptocurrency was a bigger player. Previous ones barely mentioned the industry, but this time, there was a deliberate attempt to court it, with Trump being the most aggressive. First, he began accepting cryptocurrency as part of his campaign donations and became the first US presidential candidate to do so. On top of this, he began to seek co-signs from leading figures in the industry such as the Winklevoss twins who donated to his campaign.
During one of his fundraisers, he made the bold statement that he would fire current Securities and Exchange Chair Gary Gensler if elected. This was notable because the SEC and the crypto industry have seemingly been at odds. Yes, 2024 saw the Commission finally approve spot ETFs for both Bitcoin and Ether but that didn’t change the complex history they have. Specifically, the SEC has taken many top firms in the crypto industry to court, including the likes of Coinbase, Gemini, Ripple Labs, and so on. As far as many were concerned, the crypto space was being bullied by the SEC and the promise to replace its chair was appealing to many.
Also lending Trump credibility was the fact that he had dipped into the blockchain space as well. Years before running for re-election, he released his own line of NFTs, which quickly sold out despite accusations of plagiarism. Following his failed assassination attempt, he also released a line of Bitcoin-themed sneakers, which also sold out. His campaign led to the formation of several meme coins themed around him such as Trumpcoin, and major tokens even saw a spike in value after he survived. Needless to say, his campaign appeared to be creating an avenue where digital assets could thrive.
Towards the Future
Now that Trump has been re-elected, the meme coin space could be in for even more growth. First, the overall market sentiments have been positive since November, with Bitcoin being dangerously close to the coveted $100,000 price point. The idea among many consumers is that the next four years will be especially good for the crypto sector, and many tokens, meme coins included, are feeling this effect.
Another source of optimism is the fact that Trump has declared his pick for the next SEC chairman-Paul Atkins, who is famously pro-crypto. Gensler has already declared that he will vacate his seat once Trump is inaugurated and this removed any doubts about whether a pro-crypto candidate could be installed so soon. Having an SEC chair that is welcoming towards the crypto space is a major win for the sector and a major step towards uniting the two.
The number of crypto entrepreneurs who are backing Trump is also on the rise. Just recently, Justin Sun, the founder of TRON, spent $30 million buying tokens from World Liberty Financial, which is a Trump-backed crypto enterprise. World Liberty Financial had been struggling prior to Sun’s purchase and the Independent suggests that Trump could profit as much as $18 million personally from this move. All these indicate that the next few years are shaping up to be a prosperous time for crypto.
Then we have to consider the fact that Trump is considered as much of an entertainment figure as he is a politician. His first term gave the world endless memeable moments and we can expect this to be fully capitalized on by the crypto space as his second term unfolds.
What Can Consumers Do?
As the meme coin and crypto space are set to be revolutionized during the incoming Trump administration, investors are advised to stay informed. Whether it’s about the newest assets being released into the market or the performance of existing assets, staying in the know will allow you to make informed decisions.
Another thing to keep an eye on is the new developments regarding crypto regulation. As the SEC welcomes a new chair in 2025, the way that the crypto sector, including meme coins, is treated might change significantly. And if they are positive changes, investors could go on to profit significantly.
Conclusion
Meme coins have had an interesting journey so far. Despite being one of the most ridiculed asset classes in the crypto space, they continue to see development and enthusiasm from investors. The Trump campaign trail proved to be beneficial for cryptos as a whole and meme coins by extension.
As the inauguration date approaches, the next few years could be even better for meme coins, with pro-crypto regulation giving it an easier time entering the market and a Trump presidency providing an endless source of memeable moments. In all of this, meme coins investors stand to see their earnings increase even more.
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