President Joe Biden announced on Sunday that he is ending his re-election campaign. This decision comes as many Democrats worry that the 81-year-old might not win a second term and could hurt the party’s chances in the upcoming election.
Following this news, the Kamala Harris-themed meme coin, KAMA, jumped to a record high of 2.4 cents.
Crypto Surge and Market Reactions to Biden’s Departure
The recent surge in KAMA, the Kamala Harris-themed meme coin, highlights a growing trend of crypto traders speculating on political events through meme coins.
On Sunday, KAMA’s value more than doubled in response to President Joe Biden’s announcement that he is ending his re-election campaign. This surge led to significant gains for a lucky trader, who achieved an 8200% return on a $960 investment in the Kamala Harris parody coin, Kamala Horris ($KAMA).
According to DEXScreener data, the trader bought 628,200 $KAMA tokens on June 26 and sold them over three weeks and 266 transactions, netting a profit of $77,829.
In contrast, Bitcoin experienced a brief dip of 2.3%, dropping to $65,885 before recovering to around $67,002. Analyst Noelle Acheson attributed the drop to concerns that a potential Biden replacement might be less favorable for the cryptocurrency market compared to Trump in the upcoming election.
Market Reactions to Biden’s Exit: Trump-Inspired Coin Rises, Biden Coin Falls
In reaction to President Joe Biden’s announcement, Doland Tremp, a meme coin inspired by Donald Trump, surged 30% to approximately 55 cents. With a market cap of $24 million, Doland Tremp’s rise has made KAMA nearly four times larger than BODEN, the Biden-themed coin, which plummeted by 50% following the news.
Source: X
Biden’s decision has also led to a surge of new tokens mocking both Harris and Biden on the meme coin platform Pump.fun. Historically, these new tokens often see their values quickly decline as traders engage in speculative trading on the Solana (SOL) blockchain.
Political Endorsements and Cryptocurrency Trends
Harris’s campaign has garnered endorsements from prominent figures including President Joe Biden, former President Bill Clinton, former Secretary of State Hillary Clinton, and crypto-skeptic Senator Elizabeth Warren.
Harris expressed her gratitude for the support, stating, “I am honored to have the President’s endorsement and I intend to earn and win this nomination. I will do everything in my power to unite the Democratic Party – and unite our nation – to defeat Donald Trump and his extreme Project 2025 agenda.”
The rise of KAMA underscores how political events can significantly impact cryptocurrency trends. As the 2024 election draws near, shifts in the political landscape are expected to continue affecting the value of politically-themed cryptocurrencies.
This year is pivotal for the cryptocurrency market, with billions at stake following the recent recovery from a prolonged period of consolidation. The outcome of the election, whether involving Trump or Harris, will be crucial in shaping the market’s future.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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