The cryptocurrency market had a strong reaction to the news that US President Joe Biden will not run for a second term. Some of the memecoins linked to Biden and his family members also took a hit with tokens tied to Joe Biden, his wife Jill, and his son Hunter dropping by 80% and 46% respectively.
The decrease occurred shortly after Biden’s decision was publicized, reflecting the market’s highly responsive to political developments.
The token associated with Joe Biden, Jeo Boden, fell by 62% in two hours after the news, and tokens named after Jill and Hunter also experienced losses. Additionally, this decline wiped out about $10 billion from BODEN’s market capitalization which is a huge loss for investors.
Kamala Horris Hits All-Time High
In contrast to the Biden family tokens, the memecoin associated with U.S. Vice President Kamala Harris, Kamala Horris (KAMA), surged by 133%. This increase was fueled by speculation that Harris might become the Democratic nominee for president.
Although the token later cooled off, losing 35% from its peak, the initial surge led to an all-time high price of $0.02571 according to data from Coingecko. Kamala Horris (KAMA) was trading at $0.017, a 58% surge in the last 24hrs.
Industry Perspectives on Crypto Policies
Ripple CTO David Schwartz commented on the potential shift in Democratic crypto policies following Biden’s withdrawal. Schwartz suggested that the new Democratic nominee might adopt a more favorable stance towards cryptocurrencies, differing from Biden’s more reserved policy approach.
This perspective is shared by other industry leaders who are closely monitoring to gauge how U.S. policies might evolve regarding memecoins and digital assets.
Furthermore, notable figures like Elon Musk have expressed views on political developments. Elon reacted to a past video of Vice President Kamala Harris stating her gender and pronouns. He commented, “Imagine 4 years of this…” potentially influencing public and market opinions about presidential candidates and their policies.
Future Regulatory Outlook
Moreover, analysts suggest that SEC Chair Gary Gensler’s potential resignation could mark a turning point for cryptocurrency regulation. The experts predict that Gensler might step down with a change in administration, particularly if the new leadership adopts a pro-crypto stance. This scenario introduces additional uncertainty and anticipation regarding the future regulatory landscape in the U.S.
The crypto market remains highly reactive to global events and political developments. The swift changes in the value of memecoins linked to political figures underscore the volatile nature of this investment class. As the U.S. political scene continues to evolve, these developments could affect the regulatory environment for cryptocurrencies.
