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Meme coins have existed in the cryptocurrency space for more than a decade already, and while they were initially based on Internet memes only, this has changed throughout the time, and today, there are different types of meme coins available, ranging from celebrity meme coins and dog-themed meme coins to trend-based meme coins. The 2024 American elections have spawned a new category of meme coins known as PolitiFi coins, or political meme coins.
These digital assets are satirical and humorous and, as their name suggests, emerge from the intersection of cryptocurrencies and politics. The market cap of meme coins runs into billions, which is only proof of the kind of virality they can generate. But what exactly are these PolitiFi coins, and how do they work? In this blog, we will discuss everything you need to know about them, so keep reading to learn more.
Understanding political meme coins
Political meme coins are inspired by political events, figures and views. One example of such a meme coin is trump coin, launched by U.S. President Donald Trump, and hosted on the Solana blockchain. This meme coin hit the market right after its launch, reaching a peak of $75.35 only a few days later. Following the performance of the Trump coin, MELANIA also emerged, launched by US First Lady Melania Trump.
Political meme coins serve as a hybrid of speculation and satire, enabling users to engage with political narratives through cryptocurrencies. These meme coins illustrate the support of users for a candidate, expressing a touch of rebellion or humor, and due to their inherent political and social nature, they create an inclusive and playful atmosphere. Some political meme coins also serve as digital collectibles, as they tend to have bursts of popularity all of a sudden, capturing a specific moment. Moreover, they enable holders to participate in the platform's governance decisions or donate to political campaigns, just like other cryptocurrencies.
How do PolitiFi coins work?
Political meme coins are usually created by anonymous developers or politically motivated groups to capitalize on election results, social media trends, and public sentiment. Compared to standard cryptocurrencies like Ethereum and Bitcoin, political meme coins don’t have much utility or value beyond speculative trading. They are launched on Solana, Ethereum, and BNB Smart Chain blockchains, and they require blockchains to support smart contracts and rapid transaction fees. Solana’s SPL and ERC-20 token standards allow developers to efficiently produce these meme coins, while there are also meme coins generators available for anyone seeking to generate and launch tokens in minutes without needing any coding skills.
Investors in meme coins may purchase these tokens early and sell them at a higher price once hype drives demand, profiting from speculative trading. On the other hand, ordinary traders make the most of short-term volatility. Overall, holding political meme coins is enjoyable and entertaining for many, but they are still speculative assets feeding on excitement, and it’s essential to be cautious when investing in them.
How can you spot political meme coins early on to profit from them?
If you want to make productive investments in PolitiFi coins, it’s essential to pick them up before they go viral. Conducting adequate research and participating actively in the community of meme coins will help you stay ahead of the curve and identify the best opportunities. Here’s what to consider:
- Explore launchpads. Political meme coins usually emerge from isolated launchpads before they can go mainstream. Different platforms offer early access to new meme coins, so you may want to keep an eye on these launchpads to spot potential viral political meme coins.
- Monitor pre-pumping activity. Several tools can help you track wallet movements and determine where the large investors, known as whales, are placing their bets. This can offer insight into where the markets are heading.
- Follow thought leaders and influencers. Crypto influencers can use their voices to raise awareness of a specific political memecoin and impact its success, so it’s a good idea to keep an eye on them and evaluate sentiments around meme coins.
- Engage with cryptocurrency communities. Platforms like TikTok, Reddit, X, Discord and Telegram are where early meme coin conversations happen, revealing hotshot projects. Hence, you can join communities on these platforms to measure enthusiasm around a particular coin and determine whether it’s worth buying or not.
Beware of fake political meme coins
Whenever political meme coins go viral, fake meme coins also emerge. Behind them are promoters who want to profit from unsuspecting fans or supporters. For example, the launch of the Trump coin led to a wave of fraudulent meme coins. It’s essential to be aware of this phenomenon and do your best to avoid these fake political meme coins. Here’s what some of the tactics involving fraudulent meme coins look like and what to do to prevent them:
- Request for sensitive information. Malicious actors often use fraudulent websites that provide free tokens to get access to seed phrases and users' private keys. This is why you should never reveal your personal wallet information and always check twice that the website you’re visiting is the official one.
- Phishing scams. Fraudsters also use phishing emails to steal critical information like private keys. If you receive any unsolicited messages, beware of them and don’t engage with them. Only trust and communicate with verified sources.
- Unverified exchange listings. You shouldn’t use crypto exchanges that are unregulated and little-known, as they may list fraudulent tokens, leading to potential financial losses. Instead, choose reputable exchanges that implement strict security measures.
- Honeypot tokens. If you fall for tokens, you can buy but not sell; there won’t be any possibility of getting your money back. Make sure to always verify liquidity conditions before buying a token to prevent such honeypot tactics.
- Misleading token contracts. Fake political meme coins tend to have namesake tickers; however, they lack any official affiliation with the related party or candidate, which is why you should always check the token contact address before investing.
- Hacked social media accounts. Fraudsters often hack the social media accounts of celebrities to promote their fake tokens, so avoid having blind faith in celebrity posts. Instead, double-check the post to ensure its veracity before you make any investment decisions.
The bottom line
Political meme coins are an exciting development in the crypto landscape, merging political expression with finance, and offering individuals a unique way to engage with political movements and issues. However, investors should understand the risks associated with them, and approach PolitiFi coins with caution.