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Just recently, U.S. President Joe Biden has announced that he will not seek reelection in the upcoming 2024 Presidential Election. Biden stated that stepping down was in the best interest of the party and the country. In a follow-up post on X, Biden offered his “full support and endorsement” for Vice President Kamala Harris as the Democratic Party’s nominee.
My fellow Democrats, I have decided not to accept the nomination and to focus all my energies on my duties as President for the remainder of my term. My very first decision as the party nominee in 2020 was to pick Kamala Harris as my Vice President. And it’s been the best… pic.twitter.com/x8DnvuImJV
— Joe Biden (@JoeBiden) July 21, 2024
Biden had been facing increasing pressure to bow out of the race over the last few weeks. Multiple current senators and former President Barack Obama reportedly suggested he step down. Biden’s decision comes after a weak debate performance last month, which intensified discussions about his potential replacement.
Donald Trump responded to Biden’s announcement on Truth Social, stating, “Crooked Joe Biden was not fit to run for President, and is certainly not fit to serve — And never was!”
Vice President Harris expressed her gratitude for Biden’s endorsement, stating, “I am honored to have the President’s endorsement and my intention is to earn and win this nomination.”
Aside from Harris, potential Democratic challengers include California Gov. Gavin Newsom, Illinois Gov. J.B. Pritzker, and Michigan Gov. Gretchen Whitmer. Harris and Whitmer have not taken a firm stance on crypto. Newsom has shown optimism towards Web3 and innovation but remains neutral to somewhat pessimistic about cryptocurrency.
Cody Carbone, vice president of policy for the Chamber of Digital Commerce, noted last month, “When it comes to Newsom, he has been forced to be somewhat neutral when it comes to cryptocurrency, if not somewhat pessimistic, but somewhat optimistic about Web3 generally and innovation, which I think is a great thing.”
How Did the President-related Memecoins And Polymarket React?
The announcement had immediate repercussions in the cryptocurrency market. The memecoin Jeo Boden (BODEN) dropped by 44%. Conversely, tokens for other potential contenders saw notable gains. The memecoin Kamala Horris rose by 52%, while Gabin Noosum jumped 115%. Tokens associated with Republican Presidential candidate Donald Trump, particularly Doland Tremp, gained 24%.
In the wake of President Joe Biden’s announcement to withdraw from the reelection campaign, the Kamala Harris meme coin, KAMA, experienced a remarkable surge, quadrupling in value on Sunday. This event highlights the intersection of cryptocurrency speculation and presidential politics, where traders bet on the fortunes of political figures.
Minutes after Biden’s announcement, KAMA hit an all-time high of 2.4 cents. With a market capitalization of $24 million, KAMA now boasts roughly four times the value of BODEN, the Biden-inspired coin that previously dominated the PolitiFi scene. In stark contrast, BODEN suffered a significant decline, losing about 50% of its value following Biden’s declaration.
The political upheaval triggered a wave of new tokens mocking both Harris and Biden, launched by traders on the meme coin platform Pump.fun. Despite the frenzy, historical trends suggest that most of these tokens will likely plummet in value as buyers and sellers rush to trade meme currencies on the Solana (SOL) network.
The rapid rise of the Kamala Harris meme coin underscores the volatile and unpredictable nature of the cryptocurrency market, particularly when intertwined with political developments. As the race for the presidency heats up, traders and speculators will undoubtedly continue to watch closely, ready to capitalize on the next big political shift.
On the prediction market Polymarket, the odds for Biden to win the election dropped to below 1%, while Kamala Harris now stands at 26%. Trump remains around the same at 63%.
As Democrats prepare to select a presidential nominee at the Democratic National Convention next month in Chicago, it’s unclear whether the party will follow Biden’s endorsement and nominate Harris. Polymarket currently has Harris’s odds of being the nominee at 81%, with a generic ’Other’ candidate at 12%.
MAGA Coin Drops 8%
The “Make America Great Again” (MAGA) movement, which inspired the creation of Maga Coin, saw an 8% drop in its value over the past day. Concurrently, the trading volume of this Ethereum-based coin surged by 140% to $19 million, indicating a frenzy of sell-offs. The negative reaction in the market could be attributed to Biden’s withdrawal. Polymarket odds were already leaning towards Biden’s exit even before his official announcement, as cryptocurrency bettors had been wagering against him for a considerable time.
In contrast, the Donald Trump-themed memecoin, which is based on the Solana blockchain, increased in value by 53% in the past day, with trading volume soaring by 265%.
Trump-related currencies have seen substantial gains this year, bolstered by his supportive stance on the U.S. cryptocurrency market. His campaign promises, which include turning the United States into a crypto-friendly tourism destination, positioning himself as a “crypto president,” and accepting political donations in cryptocurrencies, have generated significant support among crypto enthusiasts.
On Polymarket, the probability of Trump winning the election remains remarkably high at 65%, reflecting the bullish sentiment within the cryptocurrency market.