FX168 Financial News (North America) News According to data from CoinGecko, the MAGA coin themed after former U.S. President Trump has surged nearly 400% in the past month, with a market value of more than $285 million. It may soon become a Hall of Famer in the meme coin world, right up there with the dog icon.

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(Source: CoinGecko)

Steven Steele, the project’s marketing director and YouTube talk show host, told CoinDesk: “My goal is for this project to gain recognition like DOGE or SHIB and achieve the same scale, market capitalization and popularity. The level of welcome.”

This may sound ridiculous, but that’s the beauty of encryption. #NFT and Cryptocurrency#

Remember, two dog-themed meme coins have reached billions of dollars in market capitalization, even though they started out as jokes. Since then, Shiba Inu’s team has launched their own blockchain ecosystem, Shibarium, and the Dogecoin community is exploring several real-world use cases.

Meme coins have divided the crypto space. For some, they represent the worst and most “depraved” aspects of global crypto casinos, while for others they embody the light-heartedness that comes with the daunting task of reshaping the global financial system – Avalanche Foundation's recent statement that it will invest in these community-building jokes is also indicative of this spirit.

This divide manifests itself in the way many memecoin projects try to compensate by steering their tokens in useful directions.

Steele said his Trump token actually has some practical value. This is part of the PoliFi experiment, combining politics, finance and community.

Is MAGA coin an indicator for predicting the general election?

Steele noted that apparently whenever there is a major event involving Trump, "the value of the token will be directly reflected in it," making it a means of predicting markets.

“For many investors, this has become a de facto election betting market,” Steele said. For Steele, the supposed accuracy of token movements is the funniest part of the big joke. part.

There are prediction market contracts that allow traders to monetize their belief in the success of Trump’s campaign, and Mechanism Capital’s Andrew Kang believes that such tokens offer higher interest rates or returns. This can be said to be a value proposition. Prediction markets have been criticized for being as depraved as meme coins, and while they are also an effective means of combating macroeconomic catastrophes, there are also plenty of ridiculous contracts out there, like the date Taylor Swift might announce her pregnancy, or John ·Is McAfee still alive?

“Prediction markets don’t offer the same return potential or profile as meme coins do,” he said. “While meme coins like Trump might deliver 100x or 1,000x returns, prediction markets are not liquid enough to generate 9-figure returns."

On the prediction market PolyMarket, a contract on Trump's chances of winning the presidential election has more than $6.46 million in liquidity, with some bets exceeding $500,000. #USAelection#

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(Source: PolyMarket)

By comparison, public bets on President Biden's reelection chances have only $4.66 million in liquidity.

The road map is election season

There have been attempts at Biden coins, but none really “took off” as Steele puts it.

On-chain data supports this. The largest Biden meme coin has a market cap of $340,000 and 1,500 holders, making its on-chain activity look like a relative ghost town compared to Trump’s 7,433 holders.

It’s unclear whether the relative success of meme coins is an accurate way to test a candidate’s prospects. While token holders certainly have “stakes” in some sense, bettors are not trying to judge any possible outcome other than whether the price will rise.

This may be because memecoin holders have a sense of degradation that prediction market bettors don’t, simply because at the end of a prediction market contract, the value of the losing side returns to zero. Trump Tokens may continue to be used after November 5, 2024.

“In the meme coin scene, people want a demagogue, someone who is exciting and unpredictable and is perceived as a total rebel,” Steele said. “Trump has what many people think he has. All these qualities.”

As for the project's roadmap, it's extremely relevant during the election season.

"The roadmap has to do with election-related events, particularly those related to Donald Trump. He will provide a wealth of fodder as the election season heats up." For those who end up online, Trump has There was something particularly captivating, a natural pull towards him.

Just as Trump inadvertently gave value to a series of unsanctioned Trump-themed tokens, the MAGA Token team is trying to reward Trump’s fan base.

Steele said one activity the Decentralized Autonomous Organization (DAO) behind MAGA Coin has been doing is “cleaning up” the first series of official Trump-themed non-fungible tokens (NFTs) that were Used by the former president as a fundraising tool to build interest in his unofficial tokens and official NFT series.

“It was very successful because we were really focused on Trump’s first official NFTs, and before we started cleaning up, the bottom price wasn’t that impressive. That created a resurgence and excitement among his NFT holders .”

Steele also stated that a portion of the proceeds from the MAGA token sale will be used for charity to help victims of child trafficking and provide shelter for homeless veterans.

It's an investment, not a vote

NFTs and DAOs have long been touted as supporting online communities and providing a way for these groups to monetize their membership.

Yuga Labs is testing this with its collection of Bored Ape Yacht Club NFTs that serve as tickets to real-life events.

But it’s hard to tell clearly what the BAYC NFT community represents. Of course, there is a common interest in cryptocurrencies, but it is a fairly broad topic. In the world of BAYC, some things have failed, such as the ape band Kingship, whose videos lacked sufficient traffic. The falling floor prices suggest the community's attention is already focused elsewhere.

In contrast, much has been written about the closeness among supporters of Trump, both of whom have solid votes. The day Trump was indicted was one of his biggest fundraising days.

However, not all Trump token holders are part of this club. They are not necessarily voters.

This is cryptocurrency and when the numbers go up, people buy.

"It's kind of a rallying cry for Trump fans, but we also have a fair number of investors who aren't necessarily Trump fans who either just saw what they thought was a great deal," Steele said. investment."

In February, Mechanism Capital’s Andrew Kang laid out his nonpartisan investment thesis for Trump Coin.

Trump is a frequent presence in the news cycle due to the US primaries and his provocative nature. "The stakes are his continued presence in the media, not just that he might win the election," he wrote on X.

"Betting on his continued presence in the media, rather than just his possible electoral victory, Trump may be one of the best attention monopolies in the world," Kang wrote on X.

In an interview with CoinDesk, he said that a “surprising number” of fund managers and venture capital firms have reached out to express interest in Trumpcoin, calling the attention token a subcategory of altcoins.

He said: “Sharp investors and traders are always on the lookout for the next coin that will deliver the greatest returns and recognize that Trump fits the bill perfectly because of his ability to draw attention to himself.” He added , professional token investors hold it alongside die-hard MAGA supporters.

(Screenshot from X)

Kang, who expects Trump to win the election, said it could have a "sell the news" effect if the price of Bitcoin surges after the election.

“However, I expect there will be a period of consolidation following Trump’s election, similar to what Dogecoin did after being linked to Elon Musk,” he said.

Regarding his personal support for Trump, he said: "I personally hate politics."

“I don’t like spending my time thinking about politics or talking about politics,” he said. "Trump is funny enough for me to get over that."