• Mechanism Capital has said that it will bet on tokens and non-fiduciary tokens focused around Donald Trump.
  • The crypto fund stated that Trump’s media profile will likely drive these meme coins up in the lead-up to U.S. election, whether or not Trump wins.

Crypto fund Mechanism Capital announced that it had made its first 2024 positions in several tokens with Donald Trump themes on Ethereum, Solana, and other networks.

Andrew Kang, founder of Mechanism Capital, said in a post on X that the company had accumulated its new positions for 2024. “These new positions are centered around Trump, and include Trump meme coins and NFTs. “We will begin using Trump sticker packs in a large scale immediately.”

Kang explained that these positions were a bet made on the news cycles, attention and focus on Trump during the months leading up to the U.S. Presidential election, and the meme tokens would allow them to capitalize on the hype.

Kang said, “This bet does not only concern whether Trump wins the election or not. His entire strategy is to provoke people by saying outrageous, funny and outrageous things.

Mechanism’s wager is on a TRUMP meme coin provided by @MAGAmemecoin. These tokens are worth over $90,000,000 and have seen $3.3 million of trading volume in the last 24 hours. data reveals.

The crypto wallet, which is believed to be owned or operated directly by Trump according to the labelling by on-chain platform Arkham has over $1 million in TRUMP tokens. The wallet received the TRUMP tokens between August and Oct. last year for $7,100 from the developers of the meme coin. However, their value increased as they were used as proxy bets on Trump’s election campaign.

DEXTool data shows that several other Trump meme tokens have also seen a rise in value over the last 24 hours. Some of these tokens are up as much as 100 percent, despite having lower liquidity and trading volume than @MAGAmemecoin.

A collection TRUMP memecoins

As such, the TRUMP token or any other token based on a meme has nothing directly to do with former U.S. president.

For a few pennies, anyone can create a smart contract on Ethereum or other blockchains and issue tokens. The presence of decentralized exchanges allows tokens to be instantly issued, backed by liquidity, and then traded shortly after.

Bitcoin bettors are crazy about Trump

Meme coins are not prediction markets, but a measure of popularity. Tokens that feature the former president have become a significant driver of trading volume.

During the 2020 elections, FTX created a permanent contract market similar to its crypto derivatives markets, and asked investors to wager on the result of the election. If Trump had won, the price would have increased to $1 and if he had lost, it would have fallen to $0.

The TRUMP and BIDEN coins had a combined value of almost $4 million in the weeks leading up to the election. Just over $2 million was traded after the White House announced that he has been diagnosed with Covid.

At Polymarket, , a contract asking bettors to predict the outcome for the 2024 presidential elections has a volume of over $37million, with a bet of $4 million on a possible Trump victory and a bet of $3 million on Biden.

Markets currently give Trump a chance of 53%, while Biden is at 36%.

Bettor’s also give 7% to Michelle Obama, and 2% to Gavin Newsom. These are wildcard bets because there is no evidence to suggest that they will replace Biden as Democrat’s nominee.

Parikshit Miishra is the editor.