Donald Trump-themed MAGA memecoin has increased 488%

The Donald Trump-themed MAGA memecoin has surged nearly 488% in the last month according to CoinGecko data and boasts a market capitalization of more than $399 million. So, one day, it could make it onto the memecoin podium of fame alongside the dog icons in this category.


MAGA price chart | Source: Tradingview

The project's marketing director and YouTube talk show host Steven Steele said in an interview:

“My intention is really to put MAGA above DOGE or SHIB in terms of size, market capitalization and popularity.”

It may sound absurd but remember that this is the cryptocurrency sector.

Those two dog-themed memecoins have market capitalizations in the billions of dollars, despite starting out as a joke. Since then, Shiba Inu administrators have been running their own blockchain ecosystem called Shibarium, while the Dogecoin community is also working on a number of real-world use cases.

Memecoin is a story with many different views. To some, they represent the worst, most “corrupt” aspects of global crypto casinos. For others, by contrast, there is the jovial spirit that comes with the herculean task of trying to reinvent the global financial system – an ethos that the Avalanche Foundation recently captured when it said They will invest in these community-building jokes.

It is because of this divide that many memecoin projects are trying to overcome by directing their tokens towards useful purposes.

According to Steele, the Trump coin actually has some utility. Specifically, it is the first chapter of the PoliFi experiment that combines politics, finance and community.

Successful prediction?

Apparently, Steele noted, whenever there is a major event involving Trump, there is a “direct correspondence in the value of the coin,” making it a kind of prediction market.

“It has grown to become the de facto betting market on the election for many investors.”

For Steele, price movement accuracy is the funniest part of this big joke.

While there are prediction market contracts that would allow traders to cash in on their belief in the success of the Trump campaign, Mechanism Capital's Andrew Kang argues that the token offers superior rates or returns. You can call it a value proposition. Prediction markets have been accused of being as corrupt as memecoins. While a useful hedge against macroeconomic disaster, there are plenty of contracts devoted to absurdities, such as the date Taylor Swift might announce her pregnancy or whether John McAfee is still alive. Are not.

“However, prediction markets do not offer the same profit potential or profile as memecoins. While 100x or 1,000x returns are possible with memecoins like TRUMP, the prediction market is not liquid enough to generate nine-figure returns.”

On prediction market Polymarket, a contract related to Trump's chances of winning the presidency has liquidity of more than $6 million with some bets reaching more than half a million dollars.


Source: PolyMarket

In contrast, open bets on President Joseph Biden's re-election chances – essentially the same question but reversed – have just under $4.5 million in liquidity.

MAGA's roadmap is election season

Biden coins have been tested, but none have truly “burned up” as Steele said.

On-chain data proves this. The largest Biden memecoin has a market cap of $358,316, and its on-chain activity looks like a relative ghost town of 1,500 holders compared to TRUMP's 7,433 (which is the largest holding in the wallet). of the former president as determined by Arkham).

It's unclear whether memecoin's relative success is an accurate way to test a presidential candidate's prospects, as some market watchers predict.

While token holders are certainly “taking risk” in a sense, stakers do not attempt to arbitrate any possible outcomes other than whether the price will rise or not.

It is possible that memecoin holders have a feeling of "dying slowly" that is not present in those who bet on the prediction market, simply because at the end of the prediction market contract, the value of the losing side will return to 0. No. The fate of Trump coin will be determined after the US presidential election date November 5, 2024.

“In the meme scene, people want a rabble-rouser, someone who is interesting and unpredictable, seen as a total rebel. Trump embodies all of those qualities in the eyes of many people."

Regarding the project roadmap, it is election season.

“Roadmap is associated with election-related events, especially those related to Donald Trump. As the election season heats up, he will provide a lot of momentum,” Steele said.

To the online community, there is something particularly seductive about Trump, so there is a natural attraction towards him.

And just as Trump accidentally gave value to a series of unclaimed Donald-themed coins, team MAGA is trying to give back to the Trump fan community.

Steele said one of the activities the decentralized autonomous organization (DAO) behind MAGA has been doing is to “floor sweep” the first series of official Trump-themed non-fungible tokens, which are used as a fundraising tool by the former president, aimed at generating interest in both his unofficial token and his official NFT chain.

“It was quite successful because we were really focused on Series One of the official Trump NFTs, where the price floor wasn't too impressive until we started sweeping the price floor. This has triggered a resurgence and excitement among his NFT holders.”

Steele also said some of the proceeds from MAGA sales will go toward charitable efforts supporting child trafficking victims and building homes for homeless veterans.

It's an investment, not a vote

NFTs and DAOs have long been touted as supporting online communities, providing a way for these groups to monetize their memberships.

Yuga Labs is testing exactly this with the Bored Ape Yacht Club (BAYC) NFT collection. This NFT is like a ticket to real-life events.

But it's difficult to articulate what the BAYC NFT community represents. There is certainly general interest in cryptocurrency, but it is a fairly broad topic. And some things in the BAYC universe have failed, such as the hip ape band Kings getting poor traffic on its videos. A falling floor price would indicate the community is focusing its attention elsewhere.

On the contrary, much has been written about the kinship of Trump supporters. Whether it's political and economic disenfranchisement, conservative politics, or a general penchant for banter, Trump has the deciding vote. Consider that Trump's alleged day was one of his best fundraising days.

However, not all Trump token holders are members of this club. They are not necessarily voters.

It's a cryptocurrency and as the quantity increases, people will buy it.

“It's a rallying cry for Trump enthusiasts, but also, we have large numbers of investors who are not necessarily Trump fans or they just see what they think is A great investment.”

In February, Mechanism Capital's Andrew Kang laid out his nonpartisan investment thesis for the Trump token.

This investment is based on the attention economy, where Trump is a regular in the news cycle due to the US primaries and his provocative nature. So, according to Kang, they are betting on his continued presence in the media and not just his ability to win the election.

“Bet on his continued presence in the media more than just a potential election victory and Trump is probably one of the best attention-grabbing monopolists in the world,” Kang wrote on X.

In an interview, Kang said that a “surprising number” of fund managers and hedge funds have reached out to express interest in the Trump coin, calling the attention-grabbing token a category sub of altcoins.

“Astute investors and traders are always looking for the next coin that will bring the biggest returns and find Trump fits the bill well, thanks to his ability to attract attention,” he said and adding that professional token investors stand with wholehearted MAGA supporters in their holdings.

After the election – which Kang says Trump will win – there could be a “selling the truth” effect if the coin has seen significant growth.

“However, I predict there will be a period of consolidation after Trump's election victory, similar to how DOGE operated after it was aligned with Elon Musk.”

Regarding his personal support for the former president, Kang said he personally hates politics.

“I don't like to spend time thinking or discussing politics. Trump is interesting enough for me to get over that.”