The Crypto Angle on the Presidential Debate

This week’s edition of The Protocol delves into the unusual intersection of cryptocurrency and politics, particularly highlighted during the recent U.S. presidential debate. The event featured former President Donald Trump and Vice President Kamala Harris and was not only a political spectacle but also a captivating moment for crypto enthusiasts.

Engaging the Crypto Community

As the debate unfolded, many in the crypto community turned to the prediction-betting platform Polymarket for real-time insights on the candidates’ performances. The atmosphere was charged with excitement as bettors closely monitored shifting odds. It became evident early on that Harris was gaining traction, with odds reflecting a consensus that she was outperforming Trump in the debate. Notably, Anthony Scaramucci, a crypto-friendly money manager and former communications director for Trump, even tweeted his observations, stating, “Trump just getting destroyed,” and shared a screenshot of the Polymarket odds.

The World of Memecoins

The debate was not just about political statements; it also sparked a frenzy of creativity in the memecoin space. A slew of new tokens emerged on the launchpad Pump.fun, including names like DWEBATE, DOMALA TRUMPIS, PEPEDENTIAL DEBATES, and WW3. These tokens served various purposes—from satirizing the debate to encapsulating memorable moments and quotes from the event. However, it’s worth noting that some of these names were decidedly not suitable for a family-friendly audience. Additionally, certain bets on Polymarket turned out to be lucrative, especially when Trump made a controversial claim about migrants “eating the dogs” in Springfield, Ohio, which subsequently inspired yet another wave of memecoins, including EATING DOGS AND CATS.

Lack of Crypto Discussion

Despite the lively atmosphere surrounding the debate, it was surprising to observe the absence of any discussion regarding cryptocurrency or digital assets. This omission left many crypto advocates disappointed, as they had hoped for a dialogue on policies affecting the blockchain space. Nonetheless, the absence of crypto topics did not prevent the Twitter community from expressing their opinions and engaging in discussions about the implications of the debate on the market.

The Memecoin Phenomenon

In an amusing turn of events, the phrase “Run spot run,” which was uttered by Trump during the debate, inspired at least 12 different memecoins on Pump.fun. This highlights how the crypto community often intertwines humor and current events, using the space as a platform for both satire and investment. The rapid creation of these tokens reflects the agility and creativity within the crypto space, where market movements are often driven by social media trends and discussions.

Coinbase’s Layer-2 Success: Marketing Over Technology?

In a related story, the success of Coinbase’s layer-2 blockchain solution, known as Base, has raised questions about the factors contributing to its rapid growth. Base has quickly ascended to the second position on the L2Beat leaderboard, boasting an 18% market share among 74 active layer-2 networks. This success is particularly noteworthy given that Base was launched using code from Optimism, with a focus on creating a user-friendly environment for developers and users alike.

Marketing Strategies

While Base may not be the most technologically advanced layer-2 solution, it has shown that effective marketing can significantly impact a project’s visibility and user adoption. Coinbase has leveraged its substantial resources to promote Base through various advertising campaigns and promotional events, such as the “Onchain Summer,” which aimed to engage new users and encourage them to explore the platform’s capabilities.

Sustainability of User Engagement

However, the critical question remains: is the growth sustainable? Are the users engaging with Base genuine participants with real on-chain needs, or are they merely opportunistic traders testing the waters? This distinction is vital for the longevity of any blockchain project. If the majority of users are simply taking advantage of promotional incentives without genuine interest in the underlying technology, the project may struggle to maintain its momentum.

Understanding User Behavior

Another aspect to consider is the behavior of these users. Are they “degens”—a term used to describe reckless traders in the crypto space—who are participating only to benefit from temporary promotions and token rewards? If this is the case, the activity may not translate into long-term stability for the Base network or its associated projects.

Conclusion

The intersection of politics and cryptocurrency during the recent presidential debate illustrates how far the crypto community has come in engaging with mainstream topics. While the lack of direct discussion about digital assets in the debate was disappointing, the vibrant reactions from the community underscore the ongoing relevance of crypto in contemporary discourse. Meanwhile, the success of Coinbase’s Base highlights the importance of marketing in the blockchain space, prompting discussions about user engagement and the sustainability of growth in an ever-evolving industry.

Stay tuned for more insights and developments in both the political and crypto arenas!