A new meme coin craze has taken the cryptocurrency world by storm, and this one is different from the other meme coins that have managed to go mainstream. The MAGA coin is the new cryptocurrency surging in the markets.
It's a Donald Trump-themed coin, getting its name from Trump's famous slogan – Make America Great Again. It surged in price at a rate of about 400 percent in the last month alone. The creation of the coin and its popularity is part of Trump's online campaigning, but as is the case with most meme coins, it can turn into something more.
What's MAGA Coin's worth?
Today's live MAGA price is $11.12, with a 24-hour trading volume of $28,470,438 at the time of this writing. The current CoinMarketCap ranking is #220, with a live market cap of $467,680,208.
However, the most important thing about a crypto coin as an investment is its potential, not just its value. The 400 percent growth and the potential to grow further drive investors towards MAGA, not just its online popularity.
"My intention is really to have this up there with a DOGE or SHIB, that kind of scale and market cap and popularity," the project's marketing director, YouTube talk show host Steven Steele, said in an interview.
A Point About Meme Coins
Expert publications such as CCN have written about meme coins before, and it's a dividing issue that the industry is always discussing. Some find meme coins to be a fun way to promote the cryptocurrency and a way to earn in a new market quickly.
Others, however, are very much against the creation and the popularity of meme coins as it's usually just a short-term trend, and it goes against the efforts to make cryptocurrencies a serious part of the mainstream finance industry.
Prediction Problems
The main problem with this meme coin, in particular, comes from the fact that it's tied up with the name and reputation of former President Donald Trump. Every time President Trump did something on the campaign trail or made the news for some comment, the market reacted, and the value of the MAGA coin changed – usually, but not always – going up.
It makes it impossible to predict the potential value of a MAGA coin the way other coins, even one on memes, can be relied upon. Since the value almost always depends on an outside force – something that President Trump does, some investors will shy away from it.
Biden's Crypto Coin
President Trump isn't the only one who has produced a meme coin. President Biden also has one, but it has much less meme potential, as Biden's campaign doesn't lean that heavily on online influence and trends such as memes.
The largest Biden meme coin has a market cap of $340,000, and its chain activity looks like a relative ghost town compared to 1,500 holders versus the 7,433 for TRUMP (the largest holding in the former president's wallet identified by Arkham).
What does it mean for the Election?
It's impossible to tell how the popularity of a meme coin with a reference to a presidential candidate translates to their chances of winning an election. Both candidates have an online presence in the field of crypto coins, but Trump's campaign and policies are closer to investors in this field.
At the same time, Trump's presidency and overall campaign and effect on politics are very chaotic, and that's the worst thing for long-term financial plans and investments. The fact that MAGA coins are more valuable and used can't be used to predict election outcomes.
"In the meme scene, people want a rabble-rouser, someone exciting and unpredictable, perceived as a total rebel," Steele said. "Trump embodies all of those qualities in the eyes of many."
An Investment and Not a Vote
There have been other meme coins before, and some have managed to become more than just memes. The best example is Dogecoin, which started as a viral internet joke and became an actual coin with many users. It has grown in value as any good investment would.
The question remains if MAGA coins will also be able to do that. Purchasing MAGA coins is more of a political statement of support for the former president and not a way to invest in a potentially profitable venture. When it manages to turn from one into the other, it will become a real crypto coin.
"It's kind of a rallying cry for people who are Trump enthusiasts, but also, we have a fair amount of investors who aren't necessarily Trump fans, either; they just see what they perceive to be a great investment," Steele said.
In February, Mechanism Capital's Andrew Kang also came out with a non-partisan approach to the MAGA coin investment, which treats it as a part of the so-called attention economy rather than a political move.
What Will Happen After the Election?
The biggest gamble with the MAGA coin investment is about the election itself. The outcome of the election will greatly affect its value, and that's what most investors are looking for. If Trump loses the election, the coin will also lose most of its value.
However, if Trump wins the election, which is what the polls indicate at the moment, it's not easy to predict how the coin will react. Some believe its value will skyrocket, while others see it as part of an election campaign effort that won't have a purpose after the election.
Trump NFTs
This isn't the first time Trump's campaign is diving into the world of blockchains and cryptocurrencies. Trump was also the first presidential candidate to introduce a series of NFTs officially supported by the campaign. The first NFT collection from former President Donald Trump sold out less than a day after going on sale, with nearly $4.5 million in profit.
Buyers of the Trump-themed non-fungible tokens gain ownership of a specific digital copy of the image. The $99 NFTs, which Trump describes as "pertaining to my life and career," digitally represent the former president as an astronaut, race car driver, cowboy, and superhero.
Dogecoin
Dogecoin is the most famous meme coin because it became more than just an internet meme and is now an actual digital coin that many use to make payments and conserve value. The coin turned from a joke to a serious proposition when Elon Musk promoted it online. Many believe that it's the model for the MAGA coin and that the same can happen to it as Trump's campaign gains momentum again.
The live price of Dogecoin is $ 0.138602 per (DOGE / USD) at the moment of writing, with a current market cap of USD 19.86B. 24-hour trading volume is $ 2.89B USD. DOGE to USD price is updated in real-time. Dogecoin is -1.69% in the last 24 hours, with a circulating supply of 143.31B.
Conclusion
A meme crypto coin inspired by the campaign and popular support for Donald Trump has recently emerged and gained momentum on the market. MAGA coin has shown quick growth and online interest as a part of the campaign effort. It remains to be seen if it will become more than that and actually become a valuable investment outside of the Trump supporter community.
