Former President Donald Trump's conviction set off a roller coaster of volatility in meme coins linked to him and current President Joe Biden. Here's an in-depth look at developments following Trump's legal setback and its impact on the cryptocurrency market.
Trump found guilty: the legal context
On May 30, a Manhattan jury found Donald Trump guilty of 34 counts related to falsifying business records, making him the first former U.S. president to be convicted of a crime. The charges stem from a hush-money $130,000 payment to porn star Stormy Daniels, who alleged an affair with Trump before his election in 2016. Trump's former lawyer, Michael Cohen, facilitated the payment in exchange for silence from Daniels, which Trump has denied.
Trump condemned the verdict as a “disgrace” and criticized Judge Merchan, who presided over the case. Sentencing is scheduled for July 11, when Trump could face prison time, although legal experts believe a fine is more likely.
Meme Coin Volatility: A Market Reaction
The court's decision triggered significant volatility in meme coins associated with Trump and Biden. MAGA coin (TRUMP) had a wild ride, initially falling from $13.50 to $11.20 after the verdict. It then jumped 50% to an all-time high of $16.80 before stabilizing around $13.90, according to CoinGecko data.
![Trump Guilty Verdict Triggers Meme 6 Coin Volatility Trump Guilty Verdict Triggers Coin Volatility](https://cryptomufasa.com/wp-content/uploads/2024/05/Trumps-Guilty-Verdict-Sparks-Meme-Coin-Volatility-1024x703.png)
Likewise, Donald Tremp (TREMP) saw its value drop 5% to rebound 18% to $1.38, and it currently sits at around $1.18, a 6% daily increase. In contrast, a meme coin linked to President Biden, Jeo Boden (BODEN), plunged 15%.
![Trump Guilty Verdict Triggers 7 Coin Volatility Trump Guilty Verdict Triggers Coin Volatility](https://cryptomufasa.com/wp-content/uploads/2024/05/Trumps-Guilty-Verdict-Sparks-Meme-Coin-Volatility-1-1024x703.png)
Is Trump the crypto choice?
Despite his historical skepticism toward cryptocurrencies, Trump has recently taken a more favorable stance. Earlier this year, he softened his tone, suggesting he could “live” with Bitcoin (BTC) and even presenting himself as the preferred candidate of crypto enthusiasts. Trump said his administration would support the cryptocurrency industry, unlike Joe Biden's administration, which he said is opposed to it.
“I'm fine with that. I want to make sure it's good and solid and everything else. But I'm fine with that. And if you like crypto in any form (and it comes in many forms different), if you are in favor of crypto, you better vote for Trump,” he said.
Trump also pledged to prevent the creation of a central bank digital currency (CBDC), promising to let Bitcoin and other cryptocurrencies thrive if he became the 47th president of the United States. Polls indicate that Trump may have an advantage in the upcoming presidential race, leading in five of six key states.
Conclusion
Donald Trump's conviction not only made headlines in the political arena, but also caused significant repercussions on the cryptocurrency market. Meme coins related to his personality have shown extreme volatility, reflecting the market reaction to his legal troubles. As the 2024 presidential race heats up, Trump's evolving stance on crypto could play a central role in influencing the votes of cryptocurrency supporters.
Read also: Donald Trump's crypto portfolio briefly exceeds $10 million