Kamala Harris Memecoin Soars to ATH After Joe Biden Drops Out

This surge made KAMA’s market cap reach $24 million, about 4x bigger than the Biden-themed coin BODEN, which used to be the largest in the niche.

Key takeaways:

• Crypto traders are returning to the political territory through memecoins.

• VP Kamala Harris-related memecoin, $KAMA, reached a new ATH of $0.024.

• When Biden decided not to run for the 2024 presidential election, $67 million in crypto long position was eradicated within half an hour.

Crypto traders are returning to the political territory, particularly the US presidential race; but this time, they are betting on “memecoins.” One such coin related to VP Kamala Harris rose more than two-fold on Sunday and reached its new ATH of $0.024 following President Joe Biden's decision to withdraw from the race for the second term.  

This surge made $KAMA’s market capitalisation reach $24 million, about four times bigger than the Biden-themed coin BODEN, which used to be the largest in the niche. In the light of this announcement, the value of BODEN plummeted by nearly 50%.  

This change in the political space saw a lot of action on memecoin token launchpads, such as Pump.fun, when traders tried to launch and exchange new tokens dedicated to Harris and Biden. However, if the previous patterns are followed, it is expected that many of them will soon turn into valueless coins as traders seek to make profits through speculative trading.  

President Biden voiced his support for Harris to be the next president of the US. Those who supported him were former President Bill Clinton and his wife, former Secretary of State Hillary Clinton, and Senator Elizabeth Warren, a known critic of cryptocurrency. In response to the endorsements, Harris appreciated the president and vowed that she would work to earn the nomination, saying that she plans to unite the Democratic party and the nation against Trump and his agenda for 2025.   

Biden’s Withdrawal Erased $67 Million of Long Position Trades Within 30 Minutes    

As Biden dropped out, current US Vice President Kamala Harris is perceived to be the next in line to take on the Democratic Party candidacy for the presidential seat.    

When Biden decided not to run for the 2024 presidential election, $67 million in crypto long position was eradicated within half an hour. It started falling rapidly at 5:30 and 6:00 PM UTC on July 21st, immediately after the price of a Bitcoin had fallen by 2.3% to $65,880.  

However, the price went back up and climbed to a 24-hour high of $68,480 shortly after the drop. This quick recovery caused traders to incur a loss of $34 million since they had placed their bets that the price of Bitcoin would decline further. Markus Thielen, the CEO of the cryptocurrency firm 10x Research, commented:  

“Biden was not credible to beat Trump so an alternative candidate could have limited Trump’s chances.” He continued, “But there is no credible alternative… hence BTC pump.”    

From 10 AM to 10 PM UTC on July 21, most of the long and short levels were liquidated, with a total liquidation value of more than $134.5 million. This has been the most liquidation in the last 12 hours since July 8, the majority of which happened on the Binance and OKX cryptocurrency exchanges.