Financial experts have often pointed out that meme coins, cryptocurrencies inspired by internet memes, do not serve a useful purpose and rely heavily on social media trends to gain popularity. The recent price swings involving BODEN support this criticism.
The old saying that any kind of attention is good attention might not hold true for meme coins anymore. In the past, even a simple mention by a famous politician could make similar coins shoot up in value. However, the recent price movement of the “Jeo Boden” (BODEN) meme coin suggests a shift in investor sentiment.
On May 8, 2024, BODEN saw a quick increase in value after former President Donald Trump humorously mentioned the “Jeo Boden” meme coin during a recent NFT event in Florida. Despite the initial 25% jump, it soon dropped, settling at around 16% above pre-comment levels, according to CoinGecko.
Trump Speaks on $BODEN at NFT Event
— db (@tier10k) May 9, 2024
"That's a Lotta Money for a Coin, I Don't Like That Investment"
Audio Source: @realDannyNelson pic.twitter.com/8NcpuCc6ZI
Upon learning that BODEN had reached a market capitalization of $240 million, Trump stated:
“That’s a lot of money for a coin, I don’t like that investment.”
This comment follows a period of significant gains for memecoins representing both Trump and President Joe Biden.
Analysts Doubt BODEN’s Long-Term Viability
Financial experts have often pointed out that meme coins, cryptocurrencies inspired by internet memes, do not serve a useful purpose and rely heavily on social media trends to gain popularity. The recent price swings involving BODEN support this criticism.
“Memecoins are a speculative gamble, not a long-term investment,” says Michael Harris, a cryptocurrency analyst at Fairhaven Wealth Management. “Their value hinges entirely on social media buzz, and a single negative comment can trigger a rapid decline.”
The same concerns can be seen in the reactions on Polymarket, a platform where people bet on outcomes related to cryptocurrencies. Although there was some buzz when people thought Donald Trump might mention BODEN, the market did not show much movement, raising concerns about the long-term potential of this meme-inspired coin.
Surge in Solana-Based Meme Coins
Memecoins are a type of cryptocurrency that are inspired by internet jokes and cultural moments. Their value often depends on hype and association with these cultural touchstones, leading to high volatility. However, the Solana blockchain, known for its speed and low transaction fees, has become a hub for memecoin activity.
Blockchain analytics platform DexScreener reports that last month, Solana-based memecoins featuring caricatures of President Biden (“Jeo Boden”) and former President Trump (“Doland Tremp”) experienced significant growth. At their peak, “Jeo Boden” had a market capitalization of $473 million, while “Doland Tremp” reached $83 million.
This trend reflects a broader surge in Solana meme coins. According to CoinGecko, the combined market capitalization of SOL-based meme coins was a staggering $7.07 billion as of May 9, 2024.
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