30s Summary

The MAGA token, a crypto themed after Trump, decreased in value following Trump’s re-election contrary to expectations. The decline extends to other Political Finance (PoliFi) memecoins, with most seeing drastic drops in value. Despite being excluded from major exchanges, MAGA trades on less popular platforms. Some attribute the tokens’ slump to traders shifting to Bitcoin due to its recent high performance. However, these tokens primarily provide entry into themed communities, which could potentially, ensure their longevity despite financial fluctuations.

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The MAGA token, a crypto themed around former President Trump, took a dive in value following Trump’s re-election – a bit of a surprise, as these tokens generally do well when attached to positive news. Yet, these tokens also serve as a means of entry into themed-communities – a use that could outlast any short-term financial speculation.

Political Finance (PoliFi) memecoins, like MAGA, are losing popularity a day after Trump’s re-election. MAGA, the original PoliFi token, has seen a nearly 50% drop in value in just a day, with the Kamala Harris-themed token, Kamala Horris trading as KAMA, seeing a 75% decrease in the same time frame.

Political Finance tokens theoretically rise in value whenever their affiliated candidate scores a win. However, following its launch in February, Andrew Kang from Mechanism Capital predicted that the MAGA token might experience a “sell the news” effect after the election. He compared the scenario to the behavior of Dogecoin following its association with Elon Musk.

MAGA has struggled to gain liquidity as it was blocked from major centralized exchanges. It does trade on decentralized exchanges and less popular ones like Gate.io, MEXC, and BingX but missed out on being listed on Kraken, ByBit, and OKX.

There’s also the possibility that post-election, traders are moving into Bitcoin as it recently reached an all-time high. Bitcoin forecasts are optimistic, with some market observers predicting it could reach $100k by the end of the year.

However, the primary purpose of PoliFi tokens extends beyond financial gains; they function as access to a community. And if these communities are managed well, they could be around for longer compared to short-term profits or losses.

This article was edited by Parikshit Mishra.