- October 28, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
The post Will Trump’s Presidency Signal a Bear Market for Meme Coins? appeared first on Coinpedia Fintech News
November 5 is the crucial day for the US electorate. Almost all the major forecasting platforms, including Polymarket, suggest that Republican candidate Donald Trump has a higher chance of winning the election than Democratic candidate Kamala Harris. Most crypto enthusiasts believe that a Trump victory would mark the beginning of a new bullish period for the entire cryptocurrency market. However, contrary to popular expectations, market expert Omid Malekan recently made a striking statement regarding the future prospects of the Meme Coin market. Here is what you should know about his revelation!
Trump’s Presidency’s Potential Impact on Meme Coins
Malekan, who is a Columbia finance professor, argued that a Trump presidency could be a bearish period for the Meme Coin market.
To further ingratiate myself with Solana fans, here's an argument of why a Trump win and/or Republican sweep (which Polymarket has at 50%) is bearish memecoins.
i) Memecoins themselves are a form of economic populism. They are a statement against the unfair ( and often grifty)…
— Omid Malekan
(@malekanoms) October 27, 2024
Donald Trump earlier promised that he would bring significant reforms to the country’s crypto regulation environment if elected.
The Colombia professor noted that these reforms could shift investors’ focus from Meme Coins to functional projects like DApps, which offer more utility, leaving Meme Coins, which lack functional value, behind.
Meme Coins as Economic Populism
As per Malekan’s opinion, Meme Coins serve as a tool for traders to register their discontent with restrictive regulations. Malekan’s primary argument suggests that in a liberal regulatory environment, like the one Trump proposes, there would be less need to express dissatisfaction through Meme Coins, thus naturally reducing their appeal.
Malekan also pointed out that a Republican victory could reintroduce major crypto events, like ICOs and airdrops, which faced restriction under the current Democratic regime.
Differing Views on Meme Coins’ Popularity Factor
Not all crypto experts share Malekan’s view. Some, like Murand Mahmudov and Cobie, strongly disagree with the observation of Malekan. The prime reason for their objection is that they don’t think that Memecoins have anything to do with crypto regulation. They asserted that regularity sentiment is in no way an element that influences the popularity of Meme Coins. They highlighted profit potential and increases in the global money supply as the two key drivers of Meme Coins’ popularity.
In conclusion, the US election may have significant implications for cryptos, with a Trump presidency potentially reshaping the market.
Stay tuned to Coinpedia for the latest developments in the Meme Coin market!
