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House of Charts: Making money on political memecoins

8 min read
House of Charts: Making money on political memecoins image

Speculating on the results of the US presidential election has long become not only a national but even international sport. Financially, too, traders and investors speculated on the election for decades, betting that certain industries would profit based on being seen favorably by either the Republican or the Democratic party. With the rise of prediction markets such as Polymarket, it became possible to bet on the specific candidate’s success. But the emergence of political meme coins took it to a whole new level.

MAGA, BODEN, and Co

For many, Donald Trump is the one who started political coins. With him having a strong brand among a passionate following that includes many people trading in memecoins, it’s no surprise that political tokens such as MAGA, TREMP, and DJT have seen strong demand. With Trump being vocal on Twitter and having the ability to move markets with a word, there is some logic in these speculators’ hopes to profit off Trump’s hype and hysterics.

With the expected run-off between Trump and Biden, there naturally appeared Biden-themed memecoins like BODEN and JILLBODEN (for the President’s wife). Why collect political tokens? Some people buying those coins probably did so in support of that candidate or party. But many more have likely done it as pure speculation to sell for profit once the victory chances balance swung in favor of one or the other candidate, as so often happens in the US presidential race.

Swing states

Because the news cycle is so sensationalist and because of the stakes in the election of the leader of the most powerful country in the world, the prices of these political memecoins can swing wildly. For example, with rumors circulating that the Libertarian candidate, RFK Jr., will drop out and endorse Trump, Trump-themed memecoins surged in price over the last few days, with TRUMP spiking 40% in less than a day. Of course, RFK-themed memecoins dropped at the news.

There are other ways for speculation to play a role with political memecoins for sale. DJT was speculated to have been created by or with the involvement of Barron Trump, Donald Trump’s son. At least that’s what its creator, “pharma bro” Martin Shkreli, tried to convince the world. And as if anyone still needed to learn why trusting Shkreli was a horrible idea, DJT rug pulled, removing all liquidity and leaving its holders with nothing of value.

And let’s not forget the biggest “unexpected” black swan event in political memecoins: Biden dropping out of the race and VP Kamala Haris taking over the nomination. Not surprisingly, Biden-themed memecoins collapsed immediately, with BODEN tanking 62% in two hours after the dropout announcement.

BODEN token price change
KAMA token price change

Speculators understand that neither KAMA nor TRUMP nor similar memecoins will replace the US dollar or have any other real-world impact after one of the candidates becomes the President. But the temptation to capitalize on such price swings is strong.

Getting the most out of political memecoins

So how does one capitalize on the sharp spikes in political memecoin prices while protecting against the sharp price declines? Sniping is the way. News spreads fast, often too fast to react manually. New memecoins are created and prices are pumped so quickly that the best profit potential can be gone before one even looks at the chart.

Anticipating political memecoins with Noti

Sniping political memecoins with the Noti sniper bot is easy: just put in the coin, and how much you want to buy. Noti then does everything else for the user, automatically and faster than other sniping bots. But how to anticipate which political memecoins will go on the rise?

Let’s first look at the RFK Jr. example. As popular as he is among a very small group of people, RFK Jr. has zero chances of actually winning the presidency. And the history of US presidential elections has plenty of examples of 3rd party candidates dropping out and supporting a mainstream candidate. Even if that were not to happen, mere speculation on such an event would send Trump-themed memecoins up — and that’s exactly what has happened. Sniping up TRUMP, MAGA, or other such memecoins when the very first rumblings of the RFK-endorsement rumor may have given some quick-footed sniping bot user a very profitable play (obviously, not financial advice).

Same thing with the KAMA memecoin. After Biden’s disastrous performance in the debate, the writing was on the wall so thick that only a geriatric presidential candidate would miss it. For sure, many people rushed to buy KAMA then. The debate was on June 27th. The price spiked nearly 300% in the following days:

KAMA price spike

But imagine the quick profit someone could make sniping KAMA right during the debate!

Finding the right politicoins

How does one know which of the dozens of Trump, Biden, or Harris politicoins to pick? One way is to pick the oldest with the biggest market cap. Another is to monitor the news to see which is trending the most. Yet another is to try to figure out which one may have been created by the son-in-law of the best friend of the old college roommate of a candidate. Since Noti is not merely a crypto sniping bot but an entire sniping platform, it uses specially-trained AI algorithms to find and monitor popular tokens. So one can outsource the hard research work to Noti’s AI engine.

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Cutting your losses

In trading, minimizing losses is even more important than maximizing profits. That’s why traders tend to have stop or trailing stop orders in place wherever possible. But in the hyper volatile world of politicoins, stop orders are not enough. As the DJT example showed all too well, memecoins need to be monitored for suspicious team activity — as Noti does. When the Shkrelis of the world try to pull liquidity, Noti sees that intent in the mempool and automatically sells its users’ holdings of that asset. Similarly, monitoring the mempools of politicoins like MAGA/KAMA/BODEN may provide early warning for troubling activity and the need to sell the asset before a price dump.

Exit Polls

At the end of the day, anything can be speculated on — but the US presidential election is such a hot topic that it almost guarantees wild price swings in related memecoins. And this particular election has been marked by shocking turns of events that no doubt made some speculators wealthy and some less so. Either way, sniping with a simple UX, effective, and powerful tool like the Noti sniper bot makes politicoin speculating into a more predictable experience.


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