The conviction of former President Donald Trump has triggered a rollercoaster of volatility in meme coins linked to him and current President Joe Biden. Here’s an in-depth look at the developments following Trump’s legal setback and its impact on the cryptocurrency market.
Trump Found Guilty: The Legal Backdrop
On May 30, a Manhattan jury found Donald Trump guilty of 34 charges related to falsifying business records, making him the first former U.S. president to be convicted of a felony. The charges stem from a hush-money payment of $130,000 to porn star Stormy Daniels, who alleged an affair with Trump prior to his 2016 election. Trump’s former lawyer, Michael Cohen, facilitated the payment in exchange for Daniels’ silence, which Trump has denied.
Trump condemned the verdict as a “disgrace” and criticized Judge Merchan, who presided over the case. The sentencing is set for July 11, where Trump could face imprisonment, though legal experts speculate a fine is more probable.
Meme Coin Volatility: A Market Reaction
The court’s decision ignited significant volatility in meme coins associated with Trump and Biden. The MAGA (TRUMP) coin experienced a wild ride, initially plummeting from $13.50 to $11.20 following the verdict. It then surged by 50% to reach an all-time high of $16.80 before stabilizing around $13.90, according to CoinGecko data.
Similarly, Donald Tremp (TREMP) saw its value drop by 5% only to rebound by 18% to $1.38, and it currently sits at about $1.18, marking a 6% daily increase. On the other hand, a meme coin linked to President Biden, Jeo Boden (BODEN), plunged by 15%.
Is Trump the Crypto Choice?
Despite his historical skepticism towards cryptocurrencies, Trump has recently adopted a more favorable stance. Earlier this year, he softened his tone, suggesting he could “live” with Bitcoin (BTC) and even portraying himself as the preferable candidate for crypto enthusiasts. Trump asserted that his administration would support the cryptocurrency sector, unlike Joe Biden’s administration, which he claims opposes it.
“I’m fine with it. I want to make sure it’s good and solid and everything else. But I’m good with it. And if you like crypto in any form (and it comes in many different forms), if you are in favour of crypto, you better vote for Trump,” he stated.
Trump also vowed to prevent the creation of a central bank digital currency (CBDC), promising to let Bitcoin and other cryptocurrencies flourish if he becomes the 47th president of the United States. Polls indicate that Trump could have an edge in the upcoming presidential race, leading in five out of six swing states.
Conclusion
The conviction of Donald Trump has not only made headlines in the political arena but also caused significant ripples in the cryptocurrency market. Meme coins tied to his persona have exhibited extreme volatility, reflecting the market’s reaction to his legal troubles. As the 2024 presidential race heats up, Trump’s evolving stance on crypto could play a pivotal role in swaying the votes of cryptocurrency supporters.
Also Read: Donald Trump’s Crypto Portfolio Briefly Surpasses $10 Million
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