Trump’s victory may diminish the allure of meme tokens, according to a Columbia Business School professor.
The meme coin sector is still a subject of debate, despite the fact that the majority of forecasts concur that a Donald Trump victory would be more advantageous for the crypto market than a Kamala Harris victory.
In the event that Trump wins the election, a professor from Columbia Business School has suggested that meme coins may experience a decline.
According to Professor Omid Malekan, investors’ fascination with meme currencies is a result of their dissatisfaction with the unjust tokenomics of venture capital-backed projects. Trump’s victory could result in the Republican Party relaxing certain policies, which could benefit token holders economically through fee transfers and token dividends. Consequently, this could potentially detract investor interest from meme coins.
“Meme coins are popular because to their initial distribution being more equitable, and they are also easy to use. However, they are of minimal utility or benefit. My argument is that meme coins are less enticing in a world where coins with greater utility are not subject to excessive regulation.” – Omid Malekan elaborated.
Furthermore, Investor Nic Carter concurs with Professor Malekan, asserting that the increase in meme currencies is partially a response to the SEC’s oppressive regulations. Brendan Malone, Head of Policy at Paradigm, has reported an increase in SEC legal actions during Gary Gensler’s tenure.
However, a lot of people in the industry don’t agree with Malekan. Analyst Murad contends that meme currencies are not associated with politics and that their expansion is instead the result of the expanding global money supply.
“People who buy meme coins don’t even care about buying things that make real money or have fee switches turned on. In reality, the activation of fee shifts expedites the demise of the altcoin complex, as no one enters the crypto market with the intention of trading equities. Parabolas are the primary reason why individuals flock to cryptocurrency. As the global money supply expands, the significance of attention will surpass that of fundamentals and cashflows. Murad commented, “This road is one-way only.”
The global M2 money supply has now surpassed $107.1 trillion, a significant increase from the $104 trillion at the start of the year. Its year-over-year growth rate is the greatest since December 2021, at 7%.
Toly, the co-founder of Solana Labs, also expresses his disagreement with Malekan, providing a viewpoint that is more influenced by trading psychology.
“Trading meme currency is a source of entertainment. It is a Keynesian beauty pageant that determines the most entertaining option for the audience. Trading all other items is considered labor. If anything, individuals are likely to desire a reduction in their workload.” – Toly made a comment.
Meme coin market capitalization surpassed $56 billion at the time of these discussions and remained above $50 billion throughout October.
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