The ex-president has significantly boosted crypto trading activity since 2020, according to data trends.
Mechanism Capital is placing its bets on tokens and NFTs linked to Donald Trump. With the upcoming U.S. elections, the fund predicts a surge in meme coins associated with Trump, regardless of the election outcome. Various Trump-themed tokens across Ethereum, Solana, and other networks saw spikes of up to 100% in the past 24 hours, as Mechanism Capital disclosed these as its initial positions for 2024.
Founder Andrew Kang mentioned, “These new positions focus on Trump, encompassing Trump-related meme coins and NFTs. Expect to see widespread use of Trump sticker packs very soon.” The investment is riding on the news cycles and attention surrounding Trump in the lead-up to the elections, aiming to capitalize on meme tokens amidst the hype.
Mechanism’s focus lies particularly on a specific TRUMP meme coin offered by @MAGAmemecoin, boasting a market cap exceeding $90 million and trading volumes of $3.3 million in the past day, according to DEXTools data. A crypto wallet allegedly linked to Trump holds over $1 million worth of these TRUMP tokens, originally receiving $7,100 from the developers but significantly appreciating in value.
While various Trump meme tokens surged in value, including some by 100% in the last 24 hours, they tend to have lower liquidity and trading volumes compared to @MAGAmemecoin. Importantly, the issuance of TRUMP tokens or any meme token isn’t directly tied to the former U.S. President.
Meme coins, functioning more as indicators of popularity than prediction markets, are gaining traction as alternative betting tools for future events, especially those tied to the former president. In the lead-up to the 2020 election, platforms like FTX introduced markets allowing investors to speculate on election outcomes. Similarly, Polymarket now hosts contracts predicting the 2024 presidential election, with significant volumes on bets related to Trump and Biden, suggesting a continued interest in political speculation within the crypto community.
