Donald Trump-themed cryptocurrencies experienced a significant rise after World Liberty Financial announced its new initiative to launch a governance token.
Token Price Surge
Fight to MAGA (FIGHT) token surged by over 150%, reaching a valuation of $10.3 million. Donald TrumpCoin (DJT) also saw a strong rally, climbing 28% to $0.00032, its highest since August 7. Meanwhile, MAGA (MAGA) rose by 18% over the past day, with a daily trading volume of $11.48 million. The total market cap of political-themed tokens surged past $481 million, with community sentiment turning bullish according to Coinmarketcap data.
World Liberty Financial Plans
The tokens rallied after World Liberty Financial announced plans to release a new governance token named WLFI. WLFI has been advertised as a non-transferable governance token, allowing holders to propose and vote on platform-related matters. Approximately 63% of the total token supply is designated for public sale, 17% for user rewards, and the remaining 20% for the team and advisors. While the launch date of the token remains undisclosed, the project team confirmed that sales would be limited to accredited investors.
Prospects and Risks
Despite the recent surge on September 17, the total market cap of political-themed tokens has dropped to $481 million. These tokens often gain prominence during election seasons, potentially losing much of their relevance post-elections. Traders often refer to these as 'event coins' due to their price dependency on related events. In the short term, these coins could see further gains if Bitcoin (BTC) breaks past its previous high. Factors that could drive Bitcoin's price higher include potential Federal Reserve rate cuts, a weakening US dollar, and a continuing stock market rally.
Donald Trump-themed cryptocurrencies have shown significant growth due to new initiatives, but they remain susceptible to political events and market conditions.
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