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    Why Meme Coins Could Suffer Under Donald Trump’s Presidency

    The post Why Meme Coins Could Suffer Under Donald Trump’s Presidency appeared first on Coinpedia Fintech News

    As November 5 draws closer, all eyes are on the U.S. election, a day set to shape not only the country’s future but potentially the path of the cryptocurrency market.

    Forecasting platforms like Polymarket now predict that Republican candidate Donald Trump is more likely to win against Democratic candidate Kamala Harris. Within the crypto world, many see a Trump victory as a spark for the next big bull run, believing his pro-crypto stance could remove the regulatory obstacles holding back growth. But not everyone shares this optimism—especially when it comes to the future of meme coins.

    Columbia finance professor and crypto expert Omid Malekan recently dropped a surprising take: he thinks Trump’s policies could actually spell trouble for meme coins. Let’s explore this further below.

    Bear Run for Meme Coins Because of Trump?

    While Trump’s pro-crypto stance excites many, Malekan suggests his leadership could have a less favorable effect on meme coins.

    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

    Trump has consistently vowed to reform crypto regulations, and Malekan believes these changes might shift investors’ interest away from meme coins and toward more functional projects like decentralized applications (DApps).

    According to Malekan, meme coins lack genuine utility, and a regulatory focus on practical use cases could leave them out of favor.

    Are Meme Coins a Form of Protest?

    Malekan explains that meme coins often act as a way for traders to voice their frustration over restrictive regulations. Under Trump, if the regulatory environment becomes more open and innovation-friendly, the need for this “protest” through meme coins might fade. Malekan suggests that if traders feel less restricted, meme coins could lose some of their current appeal.

    Another significant point Malekan raises is that a Republican win could encourage the return of major crypto events like Initial Coin Offerings (ICOs) and airdrops, which have been curtailed under the current Democratic administration. 

    Also Read :   Trump Election Impact on Cryptocurrency: How a Win Could Shake the Market   ,

    With fewer regulatory barriers, these events could gain momentum again, drawing attention to projects with real utility.

    Differing Opinions: Is Regulation Really Key to Meme Coin Popularity?

    Some experts disagree with Malekan’s stance. Crypto analysts like Murad Mahmudov and Cobie argue that meme coin popularity is not closely tied to regulatory sentiment. Instead, they believe meme coins thrive on their potential for quick profits and the overall increase in the global money supply. They contend that regulation is less of a driving factor in the popularity of meme coins.

    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

    As the election unfolds, its impact on crypto could be significant. While a Trump win might bring important shifts, especially for meme coins, opinions vary widely on what it all means.

    Will meme coins thrive or dive under Trump’s regulatory plans? Let us know what you think!

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