Political-based memecoins are surging in the lead-up to the United States November presidential election — but will they survive diminished interest in the post-election period?
A memecoin frenzy has dominated crypto trading in 2024, and tokens with political associations (PolitFi) like Jeo Boden (BODEN) and Maga (TRUMP) have outperformed other memecoin categories.
Many market observers assume they’ll reach a crescendo sometime over the next two months and then fade after the election. Pseudonymous crypto market analyst and trader Crypto Rand warned Cointelegraph:
“Once the hype momentum is gone, liquidity vanishes. The lack of liquidity can easily trap you.”
This assumption may be premature, as some say that tokens with the right attributes can withstand the anticipated drop-off or even thrive after the elections.
Kyle Kemper, who worked on RFK’s Jr. campaign and developed Make America Health Again (MAHA), told Cointelegraph that “there is definitely a future for PolitiFi memecoins after the US elections” if they can unlock new use cases, adding more value to the memecoin.
“PolitiFi has the potential to evolve beyond just memecoins into more serious applications like campaign coins, candidate-specific tokens, and movement-driven cryptocurrencies.”
But the reality is most memecoins don’t last long enough to evolve.
Memecoins’ short lifespans
Crypto Rand said memecoins rely heavily on social media sentiment and hype to generate value, rather than solid fundamentals or utility. The fast growth comes with an almost inevitable rapid decline.
The “lifespan of a memecoin rarely lasts more than three months,” the trader said.
97% of memecoins have died since 2024. Source: Chainplay memecoin report 2024
According to the trader, 95% of investors see memecoins as pure gambling and have little intent to hold onto the assets for the long term. This could mean the US election will be the end of the current craze in PolitiFi, unless Donald Trump wins.
“If Trump wins the election, I’m sure it will trigger a mini-season, the last dance.”
Still, Crypto Rand said the “vast majority” of PolitiFi memecoins will go to zero.
PolitiFi tokens can survive if they can evolve new use cases
Kemper said that political-based memecoins are “just getting started,” as they could be used to fundraise, incentivize grassroots involvement and foster ongoing engagement in political movements, “making them a powerful tool in the future of politics and finance.”
MAGA memecoin donations from Oct. 11, 2024. Source: X
Weiss Ratings research editor Jurica Dujmović also said that some PolitiFi memecoins could outlast the US elections if they offer clear utility.
“The fate of these coins will largely depend on their ability to evolve beyond their initial premise and develop tangible utility or foster enduring communities.”
Nicholas Passino is the co-founder of the MAGA MEME PAC, who helped create the Trump-themed MAGA coin. He told Cointelegraph that “PolitiFi tokens represent a much larger and broader movement than is represented by one single election.”
“We believe that tokens that seek to help certain political movements will last long into the future.”
Coins that have robust communities driven by shared ideological interests or speculative ambitions may persist beyond the electoral cycle, Dujmović said.
Communities built on shared ideology over value
Dujmović said PolitiFi memecoins offer a novel form of political expression, allowing individuals to “put their money where their mouth is.” They also provide a sense of belonging and gamify political engagement, which, if stimulated correctly, can create robust networks.
Still, as Crypto Rand points out, “devs are launching dozens of memecoins in a single week of every kind,” meaning ideology is unlikely to be the purpose of most PolitFi coins launched to make a quick buck.
According to decentralized exchange aggregator data, between 40,000– and 50,000 new crypto tokens are created daily. This figure can reach 100,000 during intensive periods of viral hype. Solana is the most popular blockchain for these launches, with 17,000–20,000 new tokens launched daily.
Top 15 chains by the number of memecoin pools launched daily as of March 29, 2024. Source: DexScreener
Kemper admitted there are so-called “cabal coins,” well-funded projects launched by inner circles that routinely pump, dump and repeat the process. He said their “primary purpose is to create and extract value using advanced tools” where only insiders benefit.
Filtering projects with a genuine political background from cabal coins can be challenging. Traders should look for projects that demonstrate long-term viability.
For Dujmović, the key for creators is to build coins around figures or ideas that can sustain long-term engagement and community interest. Given its polarizing presence, Trump’s brand is an obvious candidate.
Donald Trump is the meme lord
Among the political-based memecoins, those based on former US President Donald Trump dominate the market.
Meme about Trump-themed memes. Source: X
Kemper said that most PolitiFi memecoins are tied to Trump because of his populist movement and the solid meme-driven community behind him. Trump’s unique ability to capture media attention and drive public discourse makes him a natural focal point for speculative tokens.
“Trump’s personality and viral social media moments make him perfect for memecoins.”
Dujmović said Kamala Harris’s role as vice president and her current presidential candidacy haven’t generated the same level of speculative fervor in the memecoin market.
Passino said that in his opinion there isn’t much profit to be made in PolitiFi memes representing Biden or Harris because “they represent the antithesis of what crypto stands for.”
Still, there are some opportunities for coins that poke fun at those politicians, as Biden-themed parody memecoin BODEN demonstrated with a surge of 120% in the last month.
Parody meme from BODEN. Source: X
Dujmović noted how Trump continued to influence American politics even after leaving office in 2021, keeping him relevant in ways few other political figures can match.
Various memecoins could see a resurgence of interest as political careers are revived and hit the spotlight again said Dujmović.
For example, Robert F. Kennedy Jr. may resume his political career after he dropped out of the presidential race. Trump suggested he may offer Kennedy a Cabinet position.