- The cryptosphere embraces a wave of newly-created coins depicting Donald Trump.
- Crypto hedge fund discloses a memecurrency trade strategy, singling out one coin.
- Trader explains how media attention and simultaneous controversies serve as a bonus.
A huge cryptocurrency investment fund capitalized on the upcoming United States presidential election by betting on Donald Trump-themed coins. This unusual strategy was unveiled in a tweet by Andrew Kang, a leading member of the Mechanism Capital fund.
The traders base their tactics on the assumption that former President Trump “is one of the best monopolizers in the world.” As the preliminary votes have already started, Kang expects Trump to take up the lion’s share of the mass media’s attention until the voting ends.
Mechanism Capital’s memecoin betting strategy doesn’t imply that Donald Trump is expected to win the election but that Trump-encrusted coins are expected to gain traction because everybody will be talking about the controversial former president. “His whole strategy is being provocative, saying outrageous and funny things, things that get the people going.”
The Main Risk of Investing in Trump’s MAGA Coin
While the author of this trading strategy implied that at least a few Trump-themed coins are dwelling around the cryptosphere at the moment, only one coin seems to stand out from the flurry of pump-and-dump coins deployed on Ethereum.
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Kang chose Maga (TRUMP) as having the most potential. The memecoin scored 1054.4% gains in the last 30 days. For reference, TRUMP was priced at just $0.252 on January 9, 2024, soaring to an all-time high of $3.03 on February 7, 2024.
TRUMP is valued at $2.68 at press time, according to independent price aggregator CoinGecko. While this coin has been tracked since August 30, 2023, at the initial price of $0.077177, the current 1054% monthly surge significantly spiked Donald’s crypto portfolio, now at over $3 million.
According to the on-chain detective agency Arkham Intelligence, Donald Trump’s wallet currently holds 579.281K of TRUMP coins, valued at $1.55 million at publication. Trump’s digital purse also consists of lesser-known coins like $BABYTRUMP, $TRUCK, $BITTCOIN, and some copycat versions of $TRUMP and $PEPE.
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Kang also claimed that he participated in various Telegram group chats to get in touch with the developers of the rising Trump memecoin. Ironically, after the investigation of MAGA coin’s developer team and community, the trader sees the highest risk in the scenario where “Trump himself dumps all his $TRUMP (currently valued at ~$1m) and disavows the coin.”
On the Flipside
- Alongside Donald Trump-themed memecoins, PEPE was previously mulled as a likely element in Donald Trump’s presidential campaign due to MAGA symbolism being used for PEPE’s initial launch.
- However, the theory has been debunked by PEPE’s community, which claims that the coin is a homage to the original Pepe the Frog meme, despite Trump himself holding 6.9M PEPE for over half a year.
Why This Matters
Memecurrencies are known for extreme price fluctuations, while social hype surrounding the coin is usually a key factor in the coin’s overall adoption rate.
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