Arthur Hayes has asserted that meme coins are becoming a powerful tool for political advertising.
He credited President Donald Trump’s use of meme coins for introducing a form of political financing that bypasses traditional structures. In his view, the Official Trump (TRUMP) could serve as a leader in terms of market movement, even more so than Bitcoin (BTC), the largest cryptocurrency.
How Trump Meme Coin is Redefining Political Financing
In his latest essay, Hayes traced the evolution of political communication through technological advancements. He explained that, over time, politicians have adapted to each new medium to connect directly with voters and shape public opinion.
In the current era, Trump, one of the most globally influential political figures, has become the first major politician to embrace meme coins.
“Trump has ushered in a new era of political meme coins,” the essay read.
Hayes argued that traditional opinion polls are often skewed by social desirability bias. Nonetheless, meme coins provide a “zero-knowledge” proof of political popularity.
He explained that if someone strongly dislikes Trump or doubts his rising popularity, there’s no incentive to buy TRUMP. Instead, they might avoid purchasing it or else participate in futures trading.
According to the Maelstrom CIO, this dynamic makes the price movement of TRUMP a true reflection of Trump’s global popularity.
“Ultimately, every leader, whether democratically elected or not, will endorse their own political meme coin as the people will stop believing crooked pollsters and the propaganda mainstream media machine when it comes to political popularity,” Hayes predicted.
He acknowledged that TRUMP has dropped around 80% from its peak. At the same time, Bitcoin has yet to reach the $110,000 high it hit during the height of TRUMP mania. Despite this, Hayes foresees growth.
“I believe that if crypto sentiment improves, TRUMP will lead Bitcoin,” he stated.
Hayes suggested that any policy expected to benefit the crypto market could trigger a surge in TRUMP before the news even breaks. Bitcoin would follow soon after.
Following Hayes’ comments, TRUMP’s price started to see recovery. The meme coin rallied by double digits, rising by 12.29% over the last 24 hours. Much of these gains were recorded in the past hour alone.
At press time, TRUMP was trading at $18.97. Yet, it remains 75.90% lower than its all-time high of $73.43. Meanwhile, the overall PolitiFi market has been performing well.
According to CoinGecko, the sector saw an 11.41% increase in the last 24 hours. At the time of writing, the market capitalization stood at $3.98 billion. Despite the growth in the broader market, the majority of the top political meme coins recorded losses.
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