A meme coin analyst said that the increasing attention to memecoins is driven by money supply, contrary to some belief that it’s because of politics.
A response to a speculation circulating in social media that if a Republican wins the White House, it would be the tip of meme coins.
Politics Not The Reason
Murad, a meme coin expert, suggested that politics couldn’t be the first reason why meme coins are on the rise.
The analyst explained that the said cryptocurrency doesn’t care about “political winds” or the US Securities and Exchange Commission (SEC), adding, “99% of meme coin buyers couldn’t care less about politics.”
It’s a stance that contradicts Nic Carter, a known Bitcoiner, who opined that hype and frenzy on memecoins is the results of an “oppressive SEC regime”.
– Memecoins = largely response to oppressive SEC regime
– if SEC finds sanity, less desire / must trade memecoinsQED, trumpwin bearish memecoins https://t.co/l3CmArstsh
— nic carter (@nic__carter) October 27, 2024
Money Supply Is The Driver
Murad argued that in his opinion, the rising global money supply is the most important driver of cryptocurrency’s popularity, saying that the flourishing money supply indicates that there may be lots of money floating around, which investors can use to purchase memecoins and other high-risk assets.
99% of Memecoin buyers couldn’t care less about Politics
There are secular socio-economic forces at play which are much greater than a single election
The rise of Memecoins has more do to with the persistently rising Global Money Supply.
Will that stop under Trump? Nope.…
— Murad 💹🧲 (@MustStopMurad) October 27, 2024
In line with him, individuals purchase memecoins to “catch a moonshot”, adding that these people will not be too concerned about projects with fee switches or “legit revenues”.
Murad noted that if cryptocurrencies shifted to projects much like equity trading like dividends, a giant portion of the market can be worn out, saying that investors come to meme coins due to the wild price surge and never to trade equities.
A Republican Would Kill Meme Coins?
Meanwhile, a professor on the Columbia Business School predicted that if Donald Trump returned to the White House or, if the Republicans swept the US national elections, it will mark the tip of meme coins.
Omid Malekan believed that meme coins are types of economic protest, saying that individuals are turning their attention to meme coins since the policies of the SEC are steering them in that direction.
To further ingratiate myself with Solana fans, here’s an argument of why a Trump win and/or Republican sweep (which Polymarket has at 50%) is bearish memecoins.
i) Memecoins themselves are a type of economic populism. They’re a press release against the unfair ( and sometimes grifty)…
— Omid Malekan 🧙🏽♂️ (@malekanoms) October 27, 2024
Malekan argued that meme coins are getting used against what he called “shady VC-backed coins”, saying that the crypto is a logo of “economic populism”.
He added that individuals are using meme coins to voice out their protest because of regulatory crackdowns, saying that this can be a response to the “toxicity of the Gensler/Warren regime”.
Hence, he believed that if Republicans won the election can be a turning point that will allow the return of “sanity” in tokens, global airdrops, and ICOs, a situation that will result in the demise of the meme coin mania.
He accused the SEC because the entity answerable for the entry of meme coins into the market, something Malekan sees would stop once Trump wins the election.
Featured image from xtsupport.zendesk.com, chart from TradingView