PolitiFi Memecoins Can Be 'Litmus Test' For 2024 Presidential Candidates: Expert

PolitiFi memecoins, or cryptocurrency tokens that have themes built around political movements and political figures, are taking over the world of digital assets, and for one crypto executive, these coins can play a crucial role in gauging the popularity of presidential candidates vying for the top seat in the White House later this year.

Memecoins of political nature have gained much popularity in the digital assets space not only because they encourage engagement among users but also because they have been used to raise awareness about certain political movements and causes.

Many PolitiFi memecoins today revolve around key figures in the U.S. political space, including ex-president Donald Trump, incumbent President Joe Biden, and independent presidential contender Robert F. Kennedy Jr. The largest chunk of PolitiFi memecoins today are Trump-themed.

"PolitiFi memecoins are a major reflection of the industry's public image as they relate to the ongoing election campaigns in the U.S. With three potential candidates – Trump, Biden and Kennedy Jr. – gunning for the Oval Office, a thriving memecoin ecosystem has been built around these politicians," Max Jones, the co-founder of leading token launchpad on the Solana blockchain, MemePad, told International Business Times.

Indeed, there has been much activity around political tokens in recent days. Among the biggest gainers in the last seven days were Trump Mania (TMANIA), which logged a staggering 116.4% spike in the past week, as per data from CoinGecko. Baby Trump (BABYTRUMP) is also on a roll, increasing by 17.6%, and FreeTrump ($TRUMP) climbed by 18.8%. Maga Pepe (MAGAPEPE) surged by 80.7% in the last seven days and has been up by 52.3% in the past 24 hours.

The Kennedy Memecoin (BOBBY) is down by 23.3% in the past week, but saw a 10.3% increase in the past day as of early Thursday morning. The Jeo Boden (BODEN) coin is down by over 18% in the last 24 hours, but is up by 2.9% in the past week.

For Jones, the current atmosphere in the memecoin space around Trump "might take precedence in his crypto-focused campaign." The crypto community went abuzz earlier this week amid reports that Trump may speak at the Bitcoin 2024 event in Nashville next month.

The business magnate has recently been positioning himself as pro-crypto and has increasingly been promising support for the industry should he secure a second term in the November 2024 elections.

"As the campaign heats up, these memecoins may serve as a popularity check among the respective candidates. Though their volatility is linked to the hype around the politicians they track, their growth also takes a deep learning toward the broader market," Jones noted.

Memecoins are extremely volatile and can switch tides from the red to the green line within minutes. On the other hand, some political memecoins such as the MAGA (TRUMP) token, are steadily moving up, even on a much slower pace compared to Bitcoin and other top cryptocurrencies.

In a world where American voters are growing increasingly interested in crypto, as demonstrated in a May poll that revealed 47% of U.S. voters "indicated that they expect some of their investment portfolio to include crypto," memecoin popularity can play a hand.

Jones noted that only time will tell whether memecoins can actually "stand the test of time." On the other hand, "they currently serve as an uncommon litmus test for Trump, Biden, and RFK." In politics, a litmus test is a question raised to political candidates for high positions. Their answers will determine a nominating official's decision.