Recently popular Political Finance (PoliFi) tokens, the Trump-themed MAGA and the Kamala Harris-inspired KAMA appear to be losing steam in the wake of the US elections.
PoliFi Tokens MAGA and KAMA Drop Post-Election, Raising Questions About Industry Longevity
While MAGA, the meme coin that popularized the PoliFi genre, lost around 49% in the last 24 hours and over 50% in the past week, KAMA also experienced a steep 75% drop in the same period.
Designed to reflect political sentiment, PoliFi tokens should, in theory, rise in response to positive developments regarding associated candidates.
Earlier this year, Andrew Kang of Mechanism Capital suggested that the Trump-themed MAGA token, which was launched in February, could be successful by leveraging Trump’s media presence.
However, Kang warned that MAGA could face a “sell the news” pullback after the election, similar to how Dogecoin consolidated after its initial surge led by Elon Musk.
Another challenge MAGA’s liquidity faces is that it remains outside of major retail centralized exchanges (CEXs) like Kraken, ByBit, and OKX, limiting its availability to less-trafficked decentralized exchanges (DEXs) and smaller exchanges like Gate.io, MEXC, and BingX. Kraken does, however, list satirical Trump-themed tokens TREMP and BODEN.
The market shift may also reflect broader interest in Bitcoin (BTC), which recently surpassed a new all-time high, fueling bullish sentiment for the leading cryptocurrency.
Despite this, the memecoin sector as a whole has gained 12% in the past day, according to CoinGecko, suggesting that PoliFi’s decline may be limited to election-related tokens rather than a wholesale shift to BTC.
*This is not investment advice.