A meme coin analyst said that the increasing attention to memecoins is driven by money supply, contrary to some belief that it is due to politics.
A reaction to a speculation circulating in social media that if a Republican wins the White House, it will be the end of meme coins.
Politics Not The Reason
Murad, a meme coin expert, suggested that politics could not be the primary reason why meme coins are on the rise.
The analyst explained that the said cryptocurrency does not care about “political winds” or the US Securities and Exchange Commission (SEC), adding, “99% of meme coin buyers couldn’t care less about politics.”
It is a stance that contradicts Nic Carter, a known Bitcoiner, who opined that hype and frenzy on memecoins is the result of an “oppressive SEC regime”.
– Memecoins = in large part reaction to oppressive SEC regime
– if SEC finds sanity, less desire / need to trade memecoinsQED, trumpwin bearish memecoins https://t.co/l3CmArstsh
— nic carter (@nic__carter) October 27, 2024
Money Supply Is The Driver
Murad argued that in his opinion, the rising global money supply is the main driver of cryptocurrency’s popularity, saying that the flourishing money supply indicates that there is a lot of money floating around, which investors can use to buy memecoins and other high-risk assets.
99% of Memecoin buyers couldn’t care less about Politics
There are secular socio-economic forces at play that are much bigger than a single election
The rise of Memecoins has more do to with the persistently rising Global Money Supply.
Will that stop under Trump? Nope.…
— Murad 💹🧲 (@MustStopMurad) October 27, 2024
According to him, individuals purchase memecoins to “catch a moonshot”, adding that these people are not too concerned about projects with fee switches or “legit revenues”.
Murad noted that if cryptocurrencies shifted to projects similar to equity trading like dividends, a big portion of the market would be wiped out, saying that investors come to meme coins because of the wild price surge and not to trade equities.
A Republican Would Kill Meme Coins?
Meanwhile, a professor at the Columbia Business School predicted that if Donald Trump returned to the White House or, if the Republicans swept the US national elections, it would mark the end of meme coins.
Omid Malekan believed that meme coins are forms of economic protest, saying that people are turning their attention to meme coins because the policies of the SEC are steering them in that direction.
To further ingratiate myself with Solana fans, here’s an argument of why a Trump win and/or Republican sweep (which Polymarket has at 50%) is bearish memecoins.
i) Memecoins themselves are a form of economic populism. They are a statement against the unfair ( and often grifty)…
— Omid Malekan 🧙🏽♂️ (@malekanoms) October 27, 2024
Malekan argued that meme coins are being used against what he called “shady VC-backed coins”, saying that the crypto is a symbol of “economic populism”.
He added that people are using meme coins to voice out their protest due to regulatory crackdowns, saying that this is a response to the “toxicity of the Gensler/Warren regime”.
Hence, he believed that if Republicans won the election would be a turning point that would allow the return of “sanity” in tokens, global airdrops, and ICOs, a situation that would lead to the demise of the meme coin mania.
He accused the SEC as the entity responsible for the entry of meme coins into the market, something Malekan sees would stop once Trump wins the election.
Featured image from xtsupport.zendesk.com, chart from TradingView
Source: https://bitcoinist.com/memecoins-thrived-under-secs-oppressive-regime-crypto-analyst-says/