Trump's Crypto Endorsement Sparks Memecoin Frenzy and Reshapes Political Fundraising Landscape

2024-05-22, 03:35

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## [TL; DR]
Donald Trump, the former U.S President, has promised to support the growth of the cryptocurrency sector if re-elected into office.

After Trump’s endorsement of cryptocurrency the cumulative market cap of the top 50 memecoins rose by over 10%.

VanEck has launched a memecoin index that tracks the prices of leading memecoins that include DOGE and SHIB.

## Introduction 
There is a high chance that some people who previously hated cryptocurrencies may change their mindset as time goes on. This seems to be the case with Donald Trump, the former United States President. During his tenure in office Trump disliked cryptocurrencies. However, he now believes in various digital currencies including non-fungible tokens and the fungible ones.

This analysis looks at Trump’s endorsement of cryptocurrencies and his promise to promote pro-crypto policies if he is elected president for the second time.

## Donald Trump's Public Endorsements of Cryptocurrency
Donald Trump, one of the United States presidential aspirants, surprised many U.S citizens through his open endorsement of digital assets including cryptocurrencies and non-fungible tokens (NFTs). During a special organized event at his Mar-a-Lago resort in Palm Beach, Florida, Trump promised to end U.S hostility towards cryptocurrencies, if elected as U.S’ next  President.

Trump also said that he welcomes cryptocurrency donations for his campaign financing. By accepting cryptocurrency as part of his political fundraising Trump has personally adopted their use. Generally, his new stance towards cryptocurrencies shows a strong mindset change. This is because in some of his previous speeches Trump criticized cryptocurrencies for being unstable and being used for illegal activities like drug trafficking. Here are Trump’s tweets while he was still in office during his first term.
![](https://gimg2.gateimg.com/image/article/17163484101.jpg)
Source: X.com

However, in his speech at the Trump Cards NFT Gala held at Mar-a-Lago resort in Palm Beach he promised to end the United States’ anti-crypto policy which the Biden Administration has adopted. Speaking to a group of his NFT buyers, Trump said, ‘I’m good with It. If crypto is moving out of the U.S. because of hostility toward crypto... well, we’ll stop it. We don’t want that. "If we’re going to embrace it, we have to let them be here."

Related news: [Is Trump MEME Becoming a Best-loved MEME?](https://www.gate.io/blog_detail/4135/as-the-us-presidential-election-approaches-is-trump-meme-becoming-a-best-loved-meme "Is Trump MEME Becoming a Best-loved MEME?")

Trump also said that many members of the Biden administration are against cryptocurrencies. In [a recent speech he said](https://twitter.com/frankdegods/status/1788359051031761269 "a recent speech he said"), “Gensler is much against it, the Democrats are very much against it. And I say this a lot of people are very much for it. I am good with that. If you are in favour of crypto, vote for Trump. They are against it. Biden does not even know what it is. He has no idea.”

Based on Trump’s recent speech some crypto enthusiasts have called for digital asset lovers to vote for Trump. For example, [Kevin Svenson said](https://e.email.forbes.com/c2/869:663bc63ad963c01dcb03f7b2:ot:5e33380926f096d31d28295d:1/d7f718ed?jwtH=eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9&jwtP=eyJpYXQiOjE3MTUyNTQxMTYsImNkIjoiLmVtYWlsLmZvcmJlcy5jb20iLCJjZSI6ODY0MDAsInRrIjoiZm9yYmVzLWxpdmUiLCJtdGxJRCI6IjY2M2NiMWY3NWNlNDQwNDM5ZjAwZTE1ZCIsImxpbmtVcmwiOiJodHRwczpcL1wvdHdpdHRlci5jb21cL3R3b2JpdGlkaW90XC9zdGF0dXNcLzE3ODgzODk3NTQ1MDI4NTY3MDc_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPWNyeXB0b2NvZGV4JmNkbGNpZD01ZTMzMzgwOTI2ZjA5NmQzMWQyODI5NWQifQ&jwtS=F1Jq3yZ4eKIJt22n23xG2KJIfdnBeSxzEP0lqvz6st4 "Kevin Svenson said"), “If you put political biases aside for 2 seconds and just realize that the most likely candidate to win the presidential election has just now, for the first time, announced that he is positive on crypto currencies. It doesn't matter what your opinion is. This is bullish news.”

Ryan Selkis, the chief executive of Messari, a crypto data company, shared similar sentiments. He [wrote](https://twitter.com/twobitidiot/status/1788389754502856707 "wrote"), “I didn’t expect to share that I was in Mar-a-Lago tonight, but President Trump spoke very highly about crypto … Fight for crypto. Support President Trump.”

Also, Trump criticized the current US government for lack of comprehensive knowledge about cryptocurrency, which has forced them to implement restrictive measures against digital assets. During an interview with CNBC last month, Trump said that if elected into office again he will not enforce regulatory crackdown on digital assets like <a href="/uk/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>.

Read also: [Donald Trump Trading Card Volume Pumps Resultant from Criminal Indictment](https://www.gate.io/blog_detail/2450/donald-trump-trading-card-volume-pumps-resultant-criminal-indictment "Donald Trump Trading Card Volume Pumps Resultant from Criminal Indictment")

Likewise, Kristin Smith, CEO of the Blockchain Association, a crypto industry lobbying group, is hopeful that Trump’s speech will have a long lasting impact on this year U.S election campaigns. [He said](https://twitter.com/BlockchainAssn/status/1788963540562260350 "He said"), “President Trump’s remarks signal a sea of change in the importance of digital assets this election cycle.”

As per a [Cryptoadventure publication](https://cryptoadventure.com/bitcoin-bulls-anticipate-trump-victory-standard-chartered-predicts-150k-btc/ "Cryptoadventure publication"), a recent Standard Chartered Bank report said that the crypto market wants Trump since there is a looming fiscal dominance if the current administration continues. However, the bank explained that if the Federal Reserve monetizes government debts then many people will opt for cryptocurrencies. The Report also clarified that if Trump is re-elected president that can reignite enthusiasm in bitcoin which may be followed by a strong surge in crypto prices.

Trump’s words are good news not just to the United States crypto enthusiasts but to all crypto lovers around the globe. It has sent a positive vibe into the cryptocurrency market, creating confidence among the crypto community. At least that digresses crypto investors’ minds from the current U.S crackdown on cryptocurrencies.

As a fact, since 2022 the Biden administration has been cracking down on crypto activities in the country. So far, it is involved in various legal battles with leading crypto firms like Ripple Labs, Binance Exchange, Coinbase, Gemini Exchange and others. As a result, some experts believe that the current United States administration wants to do away with cryptocurrencies. The reason is that some lawmakers have even called for the banning of cryptocurrencies.

Related news: [Biden-Related Memecoin Stuns Markets With 5000% Surge](https://www.gate.io/post/NewsBTC/status/4936842 "Biden-Related Memecoin Stuns Markets With 5000% Surge")

Nevertheless, it is yet unclear if Trump’s recent rhetoric about digital assets can increase the number of votes he will receive by a large margin. Apart from cryptocurrencies Trump also talked highly of non-fungible tokens where he has invested much as well. In fact, his Mar-a-Lago resort in Palm Beach gathering was organized for the investors who purchased his NFTs such as the Trump Digital Trading Cards (TRUMP).

## Donald Trump's Crypto Endorsement Influences Memecoin Resurgence 
Donald Trump’s endorsement of digital assets has already led to a memecoin resurgence. In fact, within a week after his speech the collective market capitalization of the top 50 memecoins increased by over 10%.

The top performers included MAGA Coin ($TRUMP), Turbo Toad Token ($TURBO), Ponkesol ($PONKE) and Myro ($MYRO) whose values rose by between 9% and 50% within a 24-hour period after Trump’s speech. Such a price surge simply indicates that Trump’s rhetoric on digital assets may change the memecoin market dynamics, at least in the short-term. That also indicates that positive crypto policies may lead to a robust digital asset market.

Santiment, a market intelligence platform, attributed the memecoin price surge to Trump’s recent speech. It [posted](https://twitter.com/santimentfeed/status/1788750340730605709 "posted"): “Much of the attribution to these latest memecoin rises goes to Donald Trump and his pro-crypto endorsements.”

What is also important to note is that [MAGA (Make America Great Again) memecoin](https://www.gate.io/how-to-buy/maga-trump "MAGA (Make America Great Again) memecoin") which was inspired by Trump’s political slogans was one of the best crypto performers during that period as its price soared by about 80%. Donal Tremp (TREMP), another political-themed memecoin, also gained by a large margin. Santiment commented positively about the development as the next image shows.

Related news: [The ](https://www.gate.io/learn/articles/understanding--web3-banking-protocol-in-one-article-fiat24/2161 "The ")
![](https://gimg2.gateimg.com/image/article/17163486812.jpg)
Source: x.com

## Trump vs. Biden: The Crypto Sentiment Battle
Donald Trump might have limited knowledge on cryptocurrencies but he has positioned himself as a champion in the sector. In fact ,Trump has lamented that many crypto firms are leaving the United States for other countries with crypto friendly regulations. As a result, he assured the attendees at his Florida home gathering that he would stop crypto firms from leaving the country by instituting pro-crypto measures.

Regarding this, [Kitcoin quoted Trump as saying](https://www.kitco.com/news/article/2024-05-09/battle-lines-drawn-trump-advocates-crypto-while-biden-looks-regulate "Kitcoin quoted Trump as saying"), “Crypto is moving out of the U.S. because of hostility towards crypto. We’ll stop it because I don’t want that – if we’re going to embrace it, we have to let them be here.”

On the contrary, during Biden’s tenure in office the government has introduced many restrictive measures on crypto activities  and has been cracking down on leading crypto firms. For example, in March his government approved a proposal to introduce a 30% excise tax on the cost of electricity channelled towards Bitcoin mining.

Responding to that development Cynthia Lummis, the Republican Wyoming Senator promised to fight such development. [She said](https://twitter.com/SenLummis/status/1661803569341759495 "She said"), “A proposed 30% punitive tax on digital asset mining would destroy any foothold the industry has in America. I will not let President Biden tax the digital asset industry out of existence.”

Robert F. Kennedy Jr, Independent Presidential candidate, felt agitated by the Biden Administration’s stance to introduce the tax. He [tweeted](https://twitter.com/RobertKennedyJr/status/1653808786577010697 "tweeted"), “Cryptocurrencies, led by bitcoin, along with other crypto technologies, are a major innovation engine. It is a mistake for the U.S. government to hobble the industry and drive innovation elsewhere. Biden’s proposed 30% tax on cryptocurrency mining is a bad idea.” Such sentiments show that Biden is not as progressive as Trump is in relation to digital assets.

Geoffrey Kendrick, digital asset researcher at Standard Chartered, commented on Trump and Biden stance towards cryptocurrencies. He [said](https://www.kitco.com/news/article/2024-05-09/battle-lines-drawn-trump-advocates-crypto-while-biden-looks-regulate "said"), “While officials in the Biden administration have taken a relatively tough stance on digital assets, Trump said in a March interview that if elected, he would not crack down on Bitcoin or other digital assets.”

He continued, “We think that a second Trump administration would be broadly positive via a more supportive regulatory environment. In a scenario of U.S. fiscal dominance, we think Bitcoin would provide a good hedge against de-dollarization and declining confidence in the U.S. Treasury market.”

During his first tenure in office Trump adopted a laissez-faire approach. Such a hands – off approach helped the crypto sector in the United States to grow. His administration’s policies like deregulation and tax cuts which were supportive of investment also promoted the growth of the digital sector.

On the contrary, the Biden administration has focused on regulating the crypto sector. Whereas legislation is necessary for the stability of the sector and for consumer protection overregulation dampens innovation.

## Institutional Embrace: The MarketVector Meme Coin Index
Currently, there is a rise in institutional investment in cryptocurrencies. As an example, VanEck, a New York-based asset management firm known for launching a spot bitcoin ETF in January, has introduced a MarketVector Meme Coin Index (memecoin). VanEck’s memecoin index tracks the value of leading memecoins [Dogecoin (DOGE)](https://www.gate.io/blog_detail/265/sg93ifrviej1esbeb2dly29pbibpbibhyxrllmlvihwgqnv5iervz2u "Dogecoin (DOGE)") and <a href="/uk/price/shiba-inu-shib" target="_blank" class="blog_inner_link">Shiba Inu</a> (SHIB). Such an index gives investors a chance to invest in high-risk but high-reward memecoin sector in a structured way.

## Conclusion 
Trump’s positive rhetoric on cryptocurrency led to a surge in prices of the top 50 memecoins. It also positioned him as a pro-crypto presidential candidate for this year’s elections in the United States. As a result of his recent speech, several prominent regulators and leaders of crypto firms have hailed Trump’s new stance on digital assets. In the meantime, VanEck, a New York-based asset management firm, has launched its memecoin index which indicates the greater recognition of memecoins than before.

<div class="blog-details-info">
<div>Author:* Mashell C.*, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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