In these months leading up to the American presidential elections, there are those who are betting everything on crypto memes and Donald Trump-themed NFTs. The idea of the crypto fund Mechanism Capital is to profit from the excitement surrounding the presidential candidate.
Donald Trump and the bet on crypto meme and NFT dedicated to him
Mechanism Capital has shared its strategy for accumulating crypto meme and Donald Trump-themed NFTs, in anticipation of the upcoming American elections.
Andrew Kang, founder of the crypto and DeFi investment company, has published a tweet describing his basic theory, stating that he has accumulated the first new positions of 2024.
In practice, Kang predicts that the news cycle about presidential candidate Trump has just begun, and it will increasingly be the center of attention, causing a surge in tokens dedicated to him.
Here’s how Kang describes his bet on crypto memes and Trump-themed NFTs on X:
“[..] This bet is not just about whether Trump wins or not. Surveys indicate that it is very likely that he will win, but that is not the point: the point is that he will always be in the headlines and people will constantly talk about Trump. His strategy is to be provocative, to say outrageous and funny things, things that keep people engaged. There are not only elections, but also legal cases and indictments that are about to go to trial, which act as catalysts/events to increase attention.”
Donald Trump and the prediction of a surge in crypto meme and NFT dedicated to him
The same Kang, continues in his tweet to describe his research on which crypto meme and Trump-themed NFTs to bet on.
And indeed, there are several Donald Trump-themed tokens developed on Ethereum, Solana, and other blockchains. At the time of writing, some of these have recorded a 100% surge in the last 24 hours, thanks in part to Mechanism Capital’s position.
In this regard, Kang states that only Trump tokens with the highest market capitalization will have a certain longevity and will serve as a gathering point for all speculations related to the candidate.
Anyway, Mechanism’s bet seems to be on the specific meme coin TRUMP, offered by @MAGAmemecoin.
TRUMP has a market capitalization of over 90 million dollars and has recorded 3.3 million dollars in trading volumes in the last 24 hours, according to the data from DEXTools. The issuance of the TRUMP token, or any other meme token, has nothing to do directly with the former president of the United States.
The story of TRUMP’s airdrop to the address of the former US President
The crypto meme TRUMP was launched in August 2023 by the crypto project Maga and depicts a caricature of the former President of the USA with the famous laser eyes typical of the Bitcoin community.
The same crypto project wanted to then send several tokens to former US President Donald Trump, as a marketing strategy, in order to be more appealing to the public.
In practice, the transfer was executed via airdrop to Trump’s wallet, whose address was publicly known, after Trump deposited some information about his financial statement with the competent authorities on August 14th.
The fact is that the 579,281 TRUMP sent to Trump’s address between August and October 2023, went from having a value of just $5.7 thousand to exceeding one million dollars by the end of January 2024.
Donald Trump has never sold or moved any of these coins, but given their current value, who knows, he might change his mind.