By
Svetlana Soroka
April 26th, 2024
According to the crypto exec, Trump’s campaign and court cases will pump the tokens regardless of the election outcome.
A few Donald Trump-themed tokens on multiple blockchain networks have increased more than 100% in 24 hours following crypto fund Mechanism Capital’s support for the assets. In an X post, founder Andrew Kang said the tokens are the company’s first focus for the year.
“Mechanism Capital has accumulated its first new positions of 2024. These new positions center around Trump and include Trump-related meme coins and NFTs. Prolific usage of Trump sticker packs to start immediately,” wrote he.
Mechanism Capital Founder Explains Trust in Trump Tokens
Kang’s post explains that the bet on Trump tokens ties into the election. According to the founder, Trump is one of the world’s best “attention monopolizers” and will continue to hog attention as the election cycle continues. Pointing out that primary elections have begun and there will be an election every week or two, Kang says Trump will always be in the news. He described the former president’s strategy as provocative, adding that Trump says “outrageous and funny things”.
In addition to the election, Trump has a few ongoing court cases and indictments, including the civil fraud trial of the Trump Organization and subversion cases for the Georgia and federal elections. He says these developments will likely pump the Trump tokens regardless of the election results.
“This bet is not just on whether Trump wins or not. Polling indicates that he’s very likely to win, but that’s not the point. The point is that he’s going to be in headlines everywhere all the time, and ppl are constantly going to be talking about Trump,” Kang wrote.
Kang, however, sounds a note of warning. According to him, only the Trump coins with the largest market cap can guarantee longevity.
His warning extends to the general risk with “shitcoins”. However, Kang highlights that the major risk with the main $TRUMP token is if Donald Trump himself dumps his holdings, which are valued at approximately $1 million. He compares this possibility with that of meme coins $DOGE and $SHIB, which suffered similar fates but did not collapse, adding that even if Trump drums all of his $TRUMP, the asset could still remain strong. Kang ended his post with:
“Overall, this is the first memecoin I’ve seen that I believe can rival DOGE/SHIB.”
Data on Trump Tokens
One crypto wallet supposedly operated or owned by Donald Trump, according to labeling on Arkham, holds more than $1 million worth of $TRUMP. Initially, the developers of the coin deposited $7,100 between August and October 2023. However, the value of the holdings gradually pumped.
Data from DEXTools shows that Trump-based tokens traded over $3 million in the past 24 hours and have a combined market cap of over $90 million.
While the former president may be connected to $TRUMP, he is strongly against the development of a central bank digital currency (CBDC) in the United States. During a speech in Portsmouth, New Hampshire, last month, he said he would “never allow the creation of a central bank digital currency”. Trump explained that a CBDC would give the federal government absolute control over people’s money, adding that it would be a threat to freedom.
In a different speech, this time in New Hampshire’s city of Laconia, Trump doubled down on his decision to prevent the creation of a US CBDC if elected.