Trump’s Election Sparks Memecoin Mania: Is It Just Gambling?
Welcome to the wild world of the attention economy, where social media can turn anyone into a superstar overnight! Enter Haliey Welch, the “hawk tuah girl” whose rise to fame was propelled by a cheeky interview question. But hold onto your hats—she’s now at the center of a crypto storm!
The buzz around her new memecoin, Hawk, rocketed to a staggering $490 million just hours after its launch on December 4. Fast forward, and it’s now a mere $17 million. Talk about a rollercoaster ride!
After her meteoric rise, Welch faced backlash, with critics accusing her of taking advantage of her followers. Crypto expert Stephen Findeisen, known as Coffeezilla, labeled the launch a “rug pull,” a term for when developers deceive investors for quick profits before abandoning the project.
Despite the drama, Hawk is still trading, and Welch insists her team hasn’t sold a single token yet. We’re reaching out to her representatives for more insights.
This turmoil occurs amid a massive surge in memecoins, which saw their total market cap soar from $20 billion to an eye-popping $118 billion this year, per CoinMarketCap. Can you believe it? At one point in November, the memecoin platform pump.fun unleashed a jaw-dropping 69,000 new tokens in a single day!
Experts are raising eyebrows at memecoins, questioning their real value. “It’s just a catchy name slapped onto a digital coin, with no intrinsic worth,” says Carol Alexander, a finance professor at the University of Sussex.
So what exactly are memecoins? They’re a quirky blend of internet memes and cryptocurrencies. Think viral images or videos that capture the cultural pulse (who doesn’t remember Moo Deng the hippo?). On the other hand, cryptocurrencies are digital assets built on decentralized blockchains that track ownership.
Sam Baker, a UK-based memecoin trader, admits that many of these launches draw inspiration from internet crazes you’ve probably never heard of and leverage influencers to hype them across platforms like Discord and X.
He acknowledges the lack of real value in memecoins and admits there’s no formula for success. Recent entries include coins inspired by the latest Squid Game series on Netflix and even the tumultuous political landscape in Syria.
“It’s pure gambling,” Baker says, “like purchasing a lottery ticket. But some of these could skyrocket by 10,000% or more!”
Memecoins symbolize the convergence of two digital economy pillars, merging the fun of memes with the potential of crypto. “It’s all about monetizing attention from social media,” Baker explains, marking the shift from the web 2.0 of social media to the web 3.0 of decentralized finance.
There’s also a striking resemblance to meme stocks—shares that have surged after being promoted on social media, like the infamous GameStop craze where retail investors drove prices through the roof!
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The recent explosion of memecoins is also tied to Donald Trump’s election victory, with the crypto market doubling since then. Trump has been vocal about his support for crypto, promising to end the “persecution” of the industry. As a result, Bitcoin, the king of digital assets, soared past $100,000 just after his win.
Cryptocurrencies have become a favorite among influential figures on the right, like Peter Thiel, due to their ability to circumvent traditional regulations and central banking systems. Memecoins are particularly appealing to retail investors since many tokens are priced at only a fraction of a cent.
Creating memecoins is surprisingly easy—just mint a few thousand dollars’ worth of tokens on a popular blockchain like Solana and promote them across social media, hoping for a profitable sell-off. Once acquired, they can also be traded on exchanges.
Elon Musk, one of Trump’s key backers, has long championed Dogecoin, the original memecoin inspired by a meme featuring a shiba inu. What started as a parody has transformed into a serious contender, now valued at $60 billion, even though its transaction usability is limited to a handful of businesses like Tesla.
Merav Ozair, founder of the Emerging Technologies Mastery consultancy, points out that Trump’s election has ignited a new wave of enthusiasm for crypto assets. “The new administration is promising to champion the crypto space, fueling this hype,” she notes.
However, she emphasizes that the fundamentals of memecoins remain unchanged: “It’s just like stepping into a casino and betting on a number.”
