President Joe Biden announced he will not compete in the upcoming US presidential elections and has endorsed Vice President Kamala Harris as the Democratic nominee, with substantial party backing.
This announcement caused significant volatility in the cryptocurrency market, particularly affecting meme coins, with Biden-related tokens plummeting and a Harris-linked coin soaring by nearly 90%.
The Biden Effect
On July 21, President Joe Biden made a significant announcement that he will not seek re-election in the November elections. This decision comes amid pressure from numerous prominent Democrats who urged him to step aside after a lackluster performance in a recent debate against Donald Trump. Compounding concerns about his suitability for another term, Biden tested positive for COVID-19 a few days ago, raising further questions about his health.
In light of his withdrawal, Biden has thrown his support behind Vice President Kamala Harris as the Democratic candidate. This move has garnered considerable support within the party.
Unsurprisingly, Biden’s announcement had a profound impact on the cryptocurrency market, especially within the meme coin sector. Tokens associated with Biden, such as Jeo Boden (BODEN), experienced significant declines.
Conversely, Kamala Horris (KAMA) – a meme coin linked to the Vice President – surged by nearly 90%, reaching an all-time high of over $0.02.
Meanwhile, MAGA (TRUMP) – a token associated with Republican candidate Donald Trump – also saw increased volatility. Its price initially spiked following the announcement but has since started to decline, currently trading at around $6.80 according to CoinGecko, marking a 7% drop over the past 24 hours.
Beware the Risks Involved
The pronounced volatility in these meme coins serves as a reminder that investing in this sector carries significant risks. Traders should conduct thorough research and only invest money they can afford to lose.
While there are stories of individuals amassing fortunes quickly due to a sudden rise in meme coin values, there are also many who have faced substantial financial losses by entering the market at inopportune times.
Prospective investors should watch our dedicated video to learn about common pitfalls and how to protect themselves in this volatile market.
