- The CEO of Mechanism Capital reveals the company’s investment is centered around Trump-themed coins.
- According to the CEO, Shiba Inu, and Dogecoin are to be rivaled by Trump-themed coins.
Dogecoin and Shiba Inu might need to brace ahead for a battle against other rival meme coins. According to a notable cryptocurrency executive, both assets might have to counter certain hurdles in the long term.
Shiba Inu and Dogecoin currently hold the position as the two most valued meme coins by market capitalization. Both assets have remained unshaken by other members since their inception. However, Andrew Kang, the co-founder of Mechanism Capital is predicting that their position might be challenged in the near term.
In a detailed post shared with X, formerly known as Twitter, the Crypto boss announced that his firm Mechanism Capital has accumulated its first new position for the year.
Mechanism Capital has accumulated its first new positions of 2024. These new positions center around Trump and include Trump related meme coins and NFTs. Prolific usage of Trump sticker packs to start immediately.
Basic Thesis
Meme coins are all about the attention economy and… pic.twitter.com/AXLPMmBs4u
— Andrew Kang (@Rewkang) February 5, 2024
Notably, the firm is stepping into a more volatile part of the crypto market, although its CEO maintains that the future is promising. These investments center on Donald Trump-themed meme coins and Non-fungible tokens (NFTs). As such, the company is set to kick off with a prolific usage of Trump sticker packs is set to begin immediately.
Memecoins are especially recognized for their explosive nature, which relies mostly on attention from social media participants in the cryptocurrency ecosystem. Dogecoin is one such meme coin whose success is often associated with Elon Musk, a self-proclaimed Dogecoin proponent. On multiple occasions, Musk has triggered a spike in Dogecoin’s price value through social media commentary.
Kang utlines the Upsides and Downsides of Trump-themed Memecoins
The CEO of Mechanism Capital is convinced that the same approach can be taken with Trump-based meme coins. Kang highlighted Trump’s strong presence and its ability to stir up conversation and grab the public’s attention, adding that his firm intends to leverage this strategy going forward.
Spotlighting the impact that Trump-centered coins can have on the market, Kang explained that there are already a handful of Trump-themed coins, but only the highest market cap ones will last long and “serve as shelling point for Trump-related speculation.”
Spotlighting the downsides of these meme coins, Kang stated that Trump dumping his TRUMP coins is a major risk for the meme coin. Notably, Trump has dumped all his coins, all of which total an estimated $1 million in value. He asserted;
…That [Trump’s coin dump] could either kill it immediately or it could go the path of DOGE/SHIB, the former of which had its founder dump all tokens/disavow and the latter of which Vitalik sold down. Both, however, found staying power despite those events. Overall, this is the first meme coin I’ve seen that I believe can rival Doge/Shib.
At the time of this report, the TRUMP meme coin is trading at $2.85, while Doge and Shiba Inu are trading for $0.07839 and $0.000008838 respectively.
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