Discussions concerning general capital gains taxes and crypto taxation policies could impact the market and PolitiFi memecoins.
On-chain experts have warned that political-themed meme coins will remain volatile for the next seven days or more as the United States presidential debate approaches.
Bitfinex analysts said PolitiFi tokens have become speculative assets for the outcome of the upcoming elections; hence, they could witness dramatic rises and falls before, during, and after the debate between the leading candidates, incumbent President Joe Biden and former President Donald Trump.
PolitiFi Tokens to Witness Volatility
Over the past few months, the crypto market has witnessed the launch of several Trump-themed and Biden-themed tokens, such as the Ethereum-based Super Trump (STRUMP) and Maga (TRUMP), the BNB Smart Chain-based Maga Hat (MAGA), and the Solana-based Jeo Boden (BODEN) and Doland Tremp (TREMP).
These meme coins have garnered market caps and volumes running into millions of dollars as crypto community members continue to trade them. Data from Coingecko’s PolitiFi token category shows the meme coins have a collective market cap of more than $1 billion and a 24-hour trading volume of over $256 million.
The U.S. presidential debate between Biden and Trump, scheduled to air live on June 27, will see both candidates reveal their proposed policies. The duo would discuss legislative processes, likely touching on frameworks affecting cryptocurrencies. Bitfinex analysts believe discussions concerning general capital gains taxes and crypto taxation policies would interest the community and potentially impact the market.
“There could be significant movement for ‘Politifi’ tokens during and after the debate depending on their performance as these tokens have turned into speculative assets themselves in terms of the election results. What could be interesting and have market impact is discussion around capital gains taxes in general and crypto taxation policies in particular,” the analysts stated.
Crypto Community Supports Trump
The crypto market is currently experiencing a drawdown, with leading assets like bitcoin (BTC) and ether recording losses of 10% and 8% in the past month, respectively. Likewise, PolitiFi tokens like TRUMP, MAGA, TREMP, and BODEN have been significantly down in the past week, recording double-digit losses. Notably, rumors of an official DJT token on the Solana network further triggered the plunge in Trump-related tokens.
Meanwhile, top crypto community members have announced their support for Trump due to his pro-crypto stance. Yesterday, crypto exchange Gemini co-founders, the Winklevoss twins, revealed that they had donated $1 million in BTC each to Trump’s campaign and would be voting for him.