Andrew Kang, co-founder of Mechanism Capital, a crypto venture capital firm, has taken a position in "Trump related meme coins and NFTs." The $TRUMP token surged 32% on the announcement.
What Happened: Kang outlined his thesis on X to announce his fund.
Memecoins are "all about the attention economy" and "Trump is probably one of the best attention monopolizers in the world."
He pointed to the U.S. primary elections and Trump's pending court cases as catalysts for the former President to remain in the headlines.
With Trump's strategy of "being provocative, saying outrageous and funny things, things that get the people going," Kang says "the bet is not just on whether Trump wins or not."
He further points out that among the several Trump-related projects, the Ethereum ETH/USD version called "MAGA memecoin" stands out due to having the highest market capitalization and "good vibes" in the community.
The risk, according to Kang, is Trump dumping the stash of $TRUMP tokens he received as donations to disavow the coin. This could "kill it immediately' or it could follow the path of Dogecoin DOGE/USD and Shiba Inu SHIB/USD, which survived similar events.
"Overall, this is the first memecoin I've seen that I believe can rival Doge/Shib," says Kang, citing the Republican primaries as "project roadmap."
Read Also: Trump Calls CBDCs 'Dangerous' And Deems AI 'A Tremendous Security Problem'
Why It Matters: $TRUMP is up 66% over the past 24 hours and over 100% in the last three days. The token is trading around a market capitalization of $120 million, more than a 100X increase in value since its launch in August 2023.
Trump's MAGA memecoin stash is worth $1.5 million following the announcement, according to Arkham Intelligence data. Trump NFTs are trading around a floor price of 0.33 ETH, around $760, according to OpenSea.
While memecoins are routinely predicted to become the next Dogecoin or Shiba Inu, it is unusual to see high-profile investors endorse them openly. With prediction markets putting Trump's chances to win the election at 52%, it seems likely that the four-time-indicted GOP frontrunner will dominate the news cycle in the upcoming months.
What's Next: Despite repeated calls for new "Dogecoin killers," the original apex memecoin continues to outperform its rivals in several metrics.
Read Next: Fair Play? Traders Turn $3,694 Into $1.78 Million With Copy Of 'Dogecoin Killer' $WIF
Image: Shutterstock
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