President Joe Biden’s recent announcement that he will not seek reelection has had a significant impact on betting markets and PoliFi meme coins. Traders on the prediction market platform Polymarket have experienced both gains and losses as a result.
One Polymarket trader, known as ‘AnonBidenBull,’ suffered a loss of $2 million after betting on President Biden to become the Democratic nominee for the 2024 election, win the Presidential election, and secure the popular vote. In contrast, another trader named ‘Domer’ reported a profit of approximately $800,000 by betting on Biden to drop out of the race.
Interestingly, a trader who wagered $12,500 on Kamala Harris becoming the 2024 Democratic nominee saw their position’s value skyrocket by over 6,000% to nearly $769,000. Polymarket currently estimates Harris’ odds at 79%.
These incidents highlight the inherent risks associated with prediction markets like Polymarket, where outcomes are heavily influenced by unpredictable political events. Despite these risks, there has been a surge in activity on Polymarket, particularly from crypto traders, indicating a growing interest in these markets.
One crypto trader shared the story of another trader who switched an $8 million investment from Jupiter (JUP/USD) to the Biden-themed meme coin Jeo Boden (BODEN/USD) at its peak. Although the trader sold $12,500 worth of shares, they held onto the rest and are now down 98% on the bet, turning the initial $8 million into $85,000. This example serves as a reminder that even wealthy individuals can make poor investment decisions.
Another trader emphasized the importance of avoiding memes that are too specific or tied to a particular event, as they can lead to significant losses. Instead, they suggested opting for unique and universal memes as a safer option.
Looking ahead, the influence of meme coins is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on November 19.