Crypto has become one of the major talking points of this election. What started as an underground digital payments movement has ripped the very fabric of the mainstream zeitgeist.

While Donald Trump and Kamala Harris duke it out in the 2024 U.S. presidential election, let’s look at the somewhat tumultuous relationship that both candidates have had with crypto.

Donald Trump

This is Trump in 2019:

This is Trump in 2024:

Safe to say, it has been a complete 180-degree turn. What’s even more surprising is that Trump’s stance changed because of the most unlikeliest of reasons. To understand this, let’s take you back to 2021. 

NFTs were all the rage. Stephen Curry and Eminem had Bored Ape profile pics, Paris Hilton was branded an NFT business genius, and First Lady Melania Trump decided to launch her NFT platform in collaboration with Parler.

Following that, next year, Trump launched his first NFT collection. The “Trump Digital Trading Cards," sold out in less than a day, generating $4.5 million. The $99 NFTs depicted Trump in various personas like an astronaut, cowboy, and superhero. Since then, Trump released multiple NFT collections.

According to insiders, Trump found these NFTs so amusing that he began to warm up to crypto.

You heard that right.

Trump is now a crypto follower because of NFTs!

Trump’s Appearance In Bitcoin 2024

Trump made the headlines when he agreed to participate in Bitcoin 2024. Trump made several promises, including firing SEC Chairman Gary Gensler (which got one of the loudest reactions of the night), creating a US national Bitcoin stockpile by retaining all government-owned Bitcoin, and more. He predicted Bitcoin’s value would surpass gold and reaffirmed his pledge to commute Ross Ulbricht's sentence. Trump vowed to prevent the implementation of CBDC and promised to end anti-crypto policies on his first day in office.

Be Defiant

Trump also promoted a new Trump Organization crypto platform, "The DeFiant Ones," on Truth Social. He emphasized its mission to challenge big banks and financial elites. The platform, backed by his sons Eric and Donald Trump Jr., aims to offer decentralized finance solutions, potentially including tokenized real estate, to democratize access to financial services. 

As you can imagine, Trump’s support in the crypto community has soared. Since he started accepting Bitcoin donations, he managed to raise $25M from the crypto sector by July itself.

Kamala Harris

Democratic presidential candidate Kamala Harris has rarely spoken out openly about crypto. Recently, news came out that Harris is open to progressive crypto policies. Brian Nelson, a senior advisor for the Harris campaign, indicated that while the VP would advocate for stable regulations to support emerging technologies, her administration would also focus on implementing safeguards due to the industry's recent instability. 

Appealing To The Crypto Folks

However, are these claims credible? Or are they just a way to appeal to crypto enthusiasts? Let’s examine the current administration’s activities, which VP Harris is definitely a part of.

In recent years, the US federal government has intensified its scrutiny of the cryptocurrency industry, with agencies like the SEC, DOJ, and Treasury Department targeting firms, projects, and exchanges. This crackdown has been driven by concerns over fraud, tax evasion, and regulatory non-compliance and spearheaded by the likes of Janet Ellen, Elizabeth Warren, and Gary Gensler.

While cases such as FTX’s collapse due to Sam Bankman-Fried’s fraudulent activities have underscored the need for oversight, some see the government’s broad approach as a war on the entire crypto sector, not just bad actors.

Proponents argue that this aggressive stance against crypto has stifled the development of Web3 and caused a crypto “brain drain” out of the US. Critics warn that if regulatory pressures force the industry offshore, the US could lose its leadership in this sector, ultimately harming innovation and economic dynamism.

Rise of Polymarket

Polymarket, the largest on-chain prediction market, has experienced significant growth recently, with 50,000 new accounts being added each month and a total value locked around $100 million. The platform allows users to bet on the outcomes of various events, primarily political ones, and has become a key tool for gauging public sentiment and quickly pricing real-time events. 

Unlike traditional polling methods, Polymarket uses crowd wisdom to provide faster insights into unfolding news.

The platform's volume has surged over the past year, with open interest increasing more than tenfold and monthly trading volumes projected to exceed $400 million by August 2024. 

While the majority of activity focuses on political predictions, other event types, such as sports, are also gaining traction. The US Election race has heated up in Polymarket.

Around $178M in bets have been locked up on Kamala Harris and Donald Trump. It will be interesting to see if prediction markets like Polymarket will replace opinion polls in the future.

PolitFi Coins

PolitiFi meme coins are a category of memecoins inspired by political figures. The coins often reflect political events and sentiment, causing their prices to fluctuate based on the latest political developments. As a result of these elections, the following PolitiFi coins have gained traction:

As you can see, the majority of the PolitiFi coins are related to Donald Trump. Meanwhile, the Kamala Harris-inspired KAMA has also gained considerable traction.

Trump vs Harris: Who You Got?

Trump and Harris have adjusted their approaches to crypto, with Trump becoming more pro-crypto and Harris showing cautious support. The entire crypto market is now completely glued to the results of the elections. Many believe that a Trump win will kickstart a super bull cycle for crypto. Is there any truth to this statement? Or is it just hopium?

Let us know what you think.

In the meantime, make sure to join our daily crypto alpha newsletter here.

Plus, make sure to subscribe to our YouTube channel. Here is our latest video 👇