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Experts debate election impact on meme coins’ future

Experts debate election impact on meme coins’ future

GrafaGrafa2024/10/28 20:37
By:Isaac Francis

The upcoming U.S. election could shape the future of meme coins, with varying opinions on the impact of potential political outcomes. 

While many predict that a Donald Trump victory might favor the broader cryptocurrency market, the implications for meme coins are more complex. 

Omid Malekan, a professor at Columbia Business School, expressed concerns that a Trump win could make meme coins less attractive. 

He explained that these tokens appeal to investors due to their relatively fair distribution compared to venture capital-backed projects. 

According to Malekan, a Republican-led administration might relax regulations, allowing projects with economic benefits like fee switches and token dividends, which could divert investor interest away from meme coins. 

He stated, "Meme coins are simple and people like them because their initial distribution is more fair. But they have little benefit or value." 

Investor Nic Carter echoed these sentiments, attributing the rise in meme coins partly to restrictive regulations under SEC Chairman Gary Gensler. 

The increased legal actions by the SEC against various crypto projects have been cited as a key factor in meme coin popularity. 

However, not all experts agree with this assessment. 

Investor Murad suggested that meme coins' appeal has more to do with global money supply trends rather than regulatory concerns. 

He emphasised, "As global money supply increases, the importance of attention will increasingly predominate over fundamentals and cash flows." 

Adding to the conversation, Solana Labs co-founder Toly argued that trading meme coins is more about entertainment and market sentiment. 

He compared it to a "Keynesian beauty contest" where participants trade based on perceived popularity rather than utility. 

Despite differing perspectives, meme coins have maintained significant market interest, with a combined market cap surpassing $56 billion in October. 

Investors remain focused on Solana-based (CRYPTO:SOL) and AI-themed meme coins, showing resilience amid shifting political and market conditions.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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