Bitfinex Analysts See Volatility in Political Memecoins as Presidential Debate Approaches

The incumbent U.S president Joe Biden is set to go on a debate with Republican contender Donald Trump on 27th June.

The televised debate will give the two U.S presidential contenders the opportunity to present their plans for the next four years should they be voted for.

As a result, analysts at Bitfinex have predicted a volatility in political meme coins ahead of this debate. Political meme coins are meme coins inspired by political sentiments and euphoria, and they belong to the Politifi space in crypto.

Just like any other meme coins, these tokens’ prices are influenced directly by the prevailing sentiments in the political space at any point in time, rather than by any real world use cases. Examples of such tokens are Ethereum-based Super Trump and Maga, and the Solana-based, misspelled, Jeo Boden.

“There could be significant movement for ‘Politifi’ tokens during and after the debate depending on their performance as these tokens have turned into speculative assets themselves in terms of the election results,” Bitfinex analysts told The Block. 

The analysts added that it is important to note that Trump has positioned himself as the “Crypto President”. Trump recently said that the U.S should be the crypto mining headquarters of the world, a statement that has endeared the crypto community to him.

“Trump has reduced regulations and championed innovation in financial technology, while Democrats, like Biden and his official surrogate Elizabeth Warren, continue to believe only the government has the answers to how our nation leads the world,” a statement from Trump’s Republican party said.

Discussions on Capital Gains Critical

The analysts added that specific discussions about capital gain taxes and specific crypto taxation policies could be the major determinants of the prevailing sentiments after the debate. 

“What could be interesting and have market impact is discussion around capital gains taxes in general and crypto taxation policies in particular,” they added.

Other important topics expected to be covered by the debate are regulatory frameworks affecting cryptocurrencies, which is a major point of concern in the U.S today. There are no clear guidelines for the industry, although the securities and exchange commission (SEC) continues to haunt the industry.

The debate is expected to not just affect Polifi meme coins but also the general crypto market as Trump seems determined to address the general issues surrounding the industry.

Politico Meme Coins Update

The crypto industry has been on a downward spiral for days, driven by Bitcoin’s decline. As expected, Prolitifi meme tokens have nosedived as well. 

Several of the top ones like ConstitutionDAO, MAGA, and MAGA Hat have dropped significantly. It will be interesting to see how the upcoming debate affects these meme tokens.