Quick Take:

• Political memecoins experience extreme volatility following Trump’s hush money trial verdict.
• “FreeTrump” memecoin surged by 330% in one day.
• This trial marks the first time a former U.S. president has been convicted on criminal charges.

Political memecoins linked to former U.S. President Donald Trump have shown significant fluctuations in the wake of his recent trial. After a Manhattan jury found Trump guilty of 34 felony counts of falsifying business records, the crypto market reacted sharply, particularly with tokens related to Trump and his political narrative.

One of the most notable movements was seen with the FreeTrump ($TRUMP) token, which skyrocketed by 330% to reach a price of $0.019 within 24 hours, as reported by CoinGecko. Concurrently, the Jeo Boden (BODEN) token, inspired by current President Joe Biden, saw a more modest rise of 9.2%, trading at $0.3319.

However, not all Trump-related tokens fared well. The MAGA (TRUMP) token, which is associated with a wallet holding 580,000 coins linked to Trump, plummeted by 16.2% to $11.54. Another token, MAGA VP (MVP), speculated to be connected to Trump’s potential vice presidential pick, dropped 16.5% to $0.48.

The overall market capitalization for political finance (PolitiFi) memecoins dipped slightly by 0.1%, settling around $1.56 billion, according to CoinGecko.

Trump Found Guilty

On May 30, a Manhattan jury convicted Trump on 34 counts of falsifying business records. These charges stemmed from allegations that Trump’s lawyer, Michael Cohen, paid an adult film actress $130,000 during the 2016 presidential campaign to silence her about an alleged affair. The trial is historic as it marks the first instance of a former U.S. president being tried and convicted of criminal charges.

Trump’s sentencing is scheduled for July, where he could face up to four years in prison. This development has significant implications not only for his political career but also for the financial instruments associated with his name.

Cryptocurrency and Trump’s Public Image

Trump’s legal troubles have had a profound impact on the cryptocurrency market, particularly tokens bearing his name. Before his April criminal trial, trading volume for the “Trump Digital Trading Card Collection” NFTs saw a dramatic decline of 99%.

The Trump Digital Trading Card Collection was initially launched in December 2022, with each of the 45,000 tokens priced at $99. Despite an initial surge in popularity, the interest waned significantly as legal issues mounted.

Market Reactions and Future Implications

The reaction of political memecoins to Trump’s trial verdict underscores the unique intersection of politics and cryptocurrency. The swift rise and fall of these tokens highlight their volatility and the speculative nature of the market.

Analysts and investors are closely watching the developments in Trump’s legal battles and their potential impact on related digital assets. While the FreeTrump token’s spike indicates a rally among supporters or speculators, the broader market’s mixed response reflects uncertainty about Trump’s future and the stability of politically charged cryptocurrencies.

As Trump’s sentencing date approaches, further volatility can be expected in the memecoin market. Investors and traders should remain cautious, as the legal and political landscapes continue to evolve rapidly.

Conclusion

The conviction of former President Donald Trump has had immediate and significant effects on the political memecoin market. The surge of the FreeTrump token contrasted with the decline of other Trump-related tokens paints a complex picture of investor sentiment. With Trump’s sentencing on the horizon, the crypto market’s response to political events remains a fascinating and unpredictable aspect of the digital finance world.

As the lines between politics and cryptocurrency blur, the market’s reaction to legal and political developments will likely continue to be a key area of interest and volatility.