Crypto Frenzy: Trump-Themed Tokens Surge as Mechanism Capital Places Big Bets

Mechanism Capital's strategic move into Trump-related tokens anticipates a surge in meme coin interest.

In a bold move, Mechanism Capital has announced its venture into Trump-themed tokens, positioning itself at the forefront of a rising trend. The crypto fund believes that tokens and NFTs tied to Donald Trump could see a substantial boost, leveraging the former president's media influence.

Founder Andrew Kang revealed in an X post that the fund's recent positions for 2024 are primarily focused on Trump-related meme coins and NFTs. Kang emphasized the potential impact of Trump's media presence, irrespective of the election outcome.

The surge in value of various Trump-themed tokens across Ethereum, Solana, and other networks, some experiencing a 100% increase in the last 24 hours, aligns with Mechanism Capital's strategic move.

Kang stated, "This bet is not just on whether Trump wins or not...His whole strategy is being provocative, saying outrageous and funny things, things that get the people going."

Mechanism Capital has specifically invested in the TRUMP meme coin offered by @MAGAmemecoin, boasting a market capitalization exceeding $90 million and $3.3 million in trading volumes within the past 24 hours, according to DEXTools data.

Interestingly, a crypto wallet linked to Trump, noted by the on-chain platform Arkham, holds over $1 million worth of TRUMP tokens. Originally receiving $7,100 from the meme coin's developers, the wallet's value surged as it became a proxy bet on Trump's campaign.

Other Trump meme tokens also witnessed a surge in value, although on lower liquidity and trading volumes compared to @MAGAmemecoin, as per DEXTool data.

The issuance of TRUMP tokens, like many meme coins, is decentralized and not directly associated with the former U.S. President. The ease of creating tokens on blockchain platforms allows anyone to initiate such projects.

Trump-themed tokens have become a notable driver of trading volume, reflecting a growing trend in using meme coins as an unconventional tool for speculation on future events.

In 2020, FTX introduced a perpetual contract market, mimicking its crypto derivatives markets, allowing investors to bet on the U.S. election outcome using TRUMP and BIDEN tokens. These tokens saw significant trading volumes during the election period.

Looking ahead to the 2024 presidential election, Polymarket features a contract with over $37 million in volume, where bets on Trump's chance of winning stand at 53%, while Biden holds a 36% chance. Notably, wildcard bets include 7% for Michelle Obama and 2% for Gavin Newsom, despite no credible evidence suggesting their candidacy.

(Photo Source / DexTools)