President Joe Biden announced on Sunday that he will be withdrawing from the 2024 Presidential race. This decision caused Biden-themed meme coins to crash, impacting the meme coin market and platforms like Polymarket.
Biden has endorsed Vice President Kamala Harris as the Democratic nominee.
Kamala Horris (KAMA) Meme Coin Soars
Polymarket saw significant activity following Biden’s announcement. Some traders, who predicted Biden’s exit, profited greatly.
For example, one trader made a 100x profit as the news spread. Another trader saw a return of $196,102 from an initial bet of $38,160 on Biden’s withdrawal.
However, not all traders were successful. One user – “AnonBidenBull” lost nearly $2 million while betting on Biden’s candidacy.
Biden-themed meme coins, including those named after his family members, dropped over 60%. The “Jeo Boden” (BODEN) token fell 60.11% within 24 hours, wiping nearly $10 million from its market cap.
In contrast, tokens linked to Vice President Kamala Harris, such as the “Kamala Horris” (KAMA) token, surged 80% amid speculation she might be the next Democratic candidate.
Market Reacts Sharply to Political News
This market response highlights the speculative nature of meme coins, which often react strongly to news and public perceptions. Investors in these tokens face extreme risks, as their value can fluctuate wildly based on political events.
Biden did not cite health reasons for his decision, despite recently contracting COVID-19. However, the political implications are clear. Kamala Harris’s chances of winning the US Presidential election have surged to 29%.
According to Polymarket data, Donald Trump remains the top contender, with 64% odds of winning the election.
