Hype, a new memecoin trading platform on Solana, has introduced a “President Memecoin Index” enabling traders to track and trade tokens related to the upcoming U.S. election.
The index tracks some of the largest memecoins associated, though not officially affiliated, with former President Donald Trump and Vice President Kamala Harris. This includes Doland Tremp (TREMP), MAGA token (TRUMP) and Donald Trump (TRUMP) as well as Kamala Horris (KAMA), Krazy Kamala (KAMALA) and KAMALA HARRIS (HARRIS).
“The challenge with memecoins around events or trends is that sometimes there isn’t ‘one’ coin everyone rallies around. With presidents, for example, there are multiple, and so an index visualization helps capture more surface area around the trend,” Hype founder Ravi Bakhai told The Block in an interview.
The index is designed to track these tokens' prices and provide insight into potential election outcomes, similar to how betting platforms harness market insight. Some see platforms like blockchain-based Polymarket as providing a less biased view into the likelihood of future events over polls because those with “skin in the game” are incentivized to wager on what they truly believe.
Presidential memecoins are part of a micro-trend in crypto called “PoliFi,” a play on the portmanteau DeFi.
“If you think one outcome is going to happen, you would buy that candidate's coin,” Bakhai said. “Memecions are essentially attention markets, so if more attention goes to one candidate, the higher the price will go.”
Right now, mere hours before polls open on Tuesday, Hype’s index shows that the weighted basket of Trump-themed tokens is up 86.9% since the presidential debate in mid-September. Harris-themed tokens are up 48.9%.
“Weirdly enough, the President Memecoin Index closely tracks what we’re seeing on prediction markets like Polymarket/Kalshi. Trump initially had a significant gap just as what we saw in the prediction markets and now Kamala is closing in,” Bakhai said.
On Polymarket, Trump’s odds now stand at around 57%, down from a recent high above 66% at the end of October.
Bakhai noted one particular difference between PoliFi token forecasting and betting markets: memecoins have “uncapped upside,” in that a token’s price can rally long after the election is called.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
