Polymarket estimates a 63% probability that Biden may withdraw from the race due to his health condition.
US President Joe Biden tested positive for COVID-19, triggering a wave of speculation about his 2024 re-election campaign. The announcement sparks a significant rally in meme coins named after potential successors, electrifying the cryptocurrency market.
Biden, 81, is experiencing mild symptoms and quarantines at his Delaware residence, according to Karine Jean-Pierre. Despite his efforts to continue performing duties, Polymarket has estimated a 63% probability that he may withdraw from the race due to his health condition.
Responding to this uncertainty, meme coins Gabin Noosum (NOOSUM) and Kamala Horris (KAMA) surged 171% and 94%, respectively, within 24 hours. These tokens, named after potential Democratic candidates Gavin Newsom and Kamala Harris, reflect investors’ speculation on who might succeed Biden.
Meme Coins’ Political Tumbles
Contrastingly, meme coins associated with former President Donald Trump have suffered declines. MAGA (TRUMP) and the misspelled “Doland Tremp” (TREMP) have dropped by over 8.5 and 13%, respectively, according to Coingecko data. This shift indicates a lack of confidence in Trump’s chances in the upcoming election amid Biden’s health issues.
Nancy Pelosi has reportedly advised Biden privately that defeating Trump in the November election would be challenging. This advice, coupled with Biden’s recent debate performance, has raised doubts about his re-election bid. Amid these developments, meme coin markets are buzzing with activity, reflecting the political uncertainty.
The meme coin phenomenon isn’t new. Earlier in 2024, a parody token named Jeo Boden (BODEN), inspired by Biden, reached a $648 million market cap, showing the meme coin market’s volatility and speculative nature. Meme coins thrive on social media hype and investor FOMO (fear of missing out), often leading to rapid price fluctuations.
The Boden token experienced a 54% surge within 24 hours of its launch. These tokens, while having no intrinsic value, capture attention quickly through viral social media posts and the allure of quick profits. The meme coin craze has seen significant funds raised in presales, despite warnings from experts about the high risk of scams and “rug pulls.”
Meme Coins Urgency Risky Frenzy
Crypto education firm Gryphsis Academy notes that meme coins’ appeal lies in their scarcity and timeliness, creating a sense of urgency among investors. This urgency is amplified by limited-time offers and exclusive airdrops, compelling swift action. However, the risk remains high, with many new tokens potentially being fraudulent.
Anatoly Yakovenko, co-founder of Solana, has urged investors to be cautious amidst the ongoing meme coin frenzy on Solana’s platform. With thousands of new tokens launching, the odds of a rug pull are significant, cautioning investors to thoroughly research before diving into meme coin investments.
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