The electoral event in the United States has come to an end, and Donald Trump has exceeded the necessary 270 votes in the Electoral College, ensuring his return to the White House.
Although some markets, such as bitcoin (BTC), received the results positively, in the market for memecoins inspired by Trump and Democratic candidate Kamala Harris There was a huge collapse when the news broke.
Trump and Harris related memecoins had experienced a notable performance in the days leading up to the election.
Interest was particularly focused on meme cryptocurrencies inspired by Trump, who promised crypto-friendly policies, including the creation of a strategic national reserve in bitcoin and regulations that would favor cryptocurrency mining.
However, after his electoral victory, the landscape changed drastically for these digital assets.
One of the most prominent memecoins was Doland Tremp (TREMP), developed on the Solana network. Its price reached $0.45 as votes were counted, driven by expectations of a Trump victory.
However, when Trump’s lead and subsequent victory were confirmed, TREMP began to decline, recording a 31% drop. As can be seen in the following graph of TradingViewtoday its value stands at 0.16 dollars per unit.
“Selling the news”: the strategy that brought down TREMP
This dramatic drop is explained by the strategy known as “selling the news.”
The traders They anticipate that the price of an asset (such as a cryptocurrency) will rise before a major eventsuch as the publication of a company’s financial results, a political announcement or, in this case, the publication of election results
After identifying the event, before it takes place they buy the asset with the expectation that its price will increase when the news is published.
Once the outcome of the event is known, traders sell the asset for a profit. The idea is that many people have bought the asset before the event, which drives the price up..
However, once the event ends and the news is confirmed, These investors sell to secure their profitswhich causes the price of the asset to decrease.
In the case of Kamala Harris-inspired memecoins, the drop was even steeper, driven by the candidate’s electoral defeat.
The Kamala Horris memecoin (KAMA), which was trading at $0.013 on election day, Today it has a value of just 0.0008 dollars, which represents a resounding drop of 93%as can be seen in the following graph.
The decline of TREMP and KAMA reflects the volatility of this market and how the political landscape directly affects its value.
PolitiFi: the boom of memecoins and its connection with politics
This year, the elections in the United States gave rise to a new category of memecoins called PolitiFi, a competition that is bidding to be on the same level as traditional memecoins.
These political memecoins They capitalize on the humor and creativity of memes to attract users’ attention and encourage interaction in cryptocurrency communities.
Memecoins have gained popularity in the cryptocurrency market as digital assets that pay tribute to public figures or politicians, often functioning as an expression of support for an ideology or candidate.
However, just as these currencies can rise to popularity overnight, they can also crash in a matter of hours. The volatility in these currencies is extreme, as their value depends largely on sentiment on social networks and online communities..
The PolitiFi category encapsulates this phenomenon in a particular way, as it seeks to express political satire through tokens that allow users to not only participate in political discourse, but also obtain financial profits.
Although they are highly speculative and volatile assets, Its rise responds to the interest in connecting the world of politics with that of cryptocurrencies in a new and attractive way for many investors.
