Experts are of the opinion that the impact of Donald Trump on the crypto market will be more positive than that of Kamala Harris. However, there is still a lot of uncertainty regarding the impact on the meme coin sector.

Columbia Business School professor Omid Malekan believes that Trump’s victory in the election could have a negative impact on the meme coin sector. He explained that the growing interest in meme coins was a result of disappointment in the tokenomics of venture-backed projects. If Trump were to become president, the Republican Party might make changes to certain rules that could reduce the appeal of meme coins, resulting in a decline in investor interest.

Meme coins have emerged as a response to the strict policies of the U.S. Securities and Exchange Commission (SEC), and their softening in the event of a Republican victory with Trump at the helm will likely lead to a decline, as pointed out by Nic Carter, co-founder and general partner of Castle Island Ventures. He made this observation in response to Malekan’s publication, in which he called on the Solana project community to support the Democrats, represented in the presidential elections by Kamala Harris.

Malekan highlighted that meme coins represent economic populism and a protest against traditional crypto assets and the participation of venture investors. Institutional projects are seen as a response to the “repressive policies” of SEC Chairman Gary Gensler and Senator Elizabeth Warren. A Republican victory could bolster the position of significant traditional crypto assets, bringing economic mechanisms to token holders, which are absent in meme coins.

There is a consensus that better regulation of the crypto sphere in the U.S. would act as a “bearish” factor for meme coins. However, it is believed that demand for meme coins may not completely disappear due to existing speculative interests.

Responses to these statements vary, with some believing that the growth of meme coins is attributed to economic rather than political factors. Others emphasize that interest in meme coins remains high among ordinary traders who cannot participate in large projects in the early stages.

The meme coin sector has experienced rapid growth in the crypto industry, with a rise of over 1800% since the beginning of the year. Meme coins associated with Donald Trump have seen a surge in volume and price ahead of the U.S. election. Although the sector holds a relatively small capitalization compared to the entire meme coin market, it has attracted significant attention within the crypto community.

The popularity of meme coins is based on attention cycles, and the more attention they receive, the higher their value. They also serve as collectibles, allowing for the monetization of public attention.

While Trump’s election promises are expected to bring about a new cryptocurrency boom in America, the future of meme coins remains uncertain, as they are unlikely to have any practical utility or strategic importance for the development of the decentralized finance market.

As the U.S. presidential elections approach, it is anticipated that the crypto market will face volatility, but the nature of this volatility remains unknown.