Arthur Hayes Says Trump Coin Will Lead Bitcoin If Market Sentiment Turns Favorable, Calls Memecoin 'Purest And Most Honest Popularity Metric'

Arthur Hayes, co-founder of cryptocurrency exchange BitMEX and Chief Investment Officer at Maelstrom Fund, predicted Thursday that a positive shift in the cryptocurrency market sentiment could propel Official Trump TRUMP/USD ahead of Bitcoin BTC/USD.

What Happened: In a blog post, Hayes wrote, “If some policy that those in the political know believe will positively impact crypto, TRUMP will surge well before the positive news is announced, and then Bitcoin will follow.”

Hayes emphasized that the TRUMP coin could represent President Donald Trump’s macroeconomic and monetary policies. “Therefore, I have TRUMP prominently featured on my cryptocurrency watchlist,” he added.

Hayes called political memecoins the “purest and most honest popularity metric” of a politician and the “most effective form” of political advertising.

“The tokenomics are known by all. If you choose to buy it, you buy it with eyes wide open,” he said.

To address concerns about politicians benefitting from their offices, Hayes recommended distributing 100% of the tokens upon launch, creating parity between the general public and politicians themselves.

See Also: Brian Armstrong Wants To Handle Growing Volumes Of Memecoins By Adding DEXes Into Coinbase: ‘A Little Bit Like The Early Days Of The Internet

Why It Matters: Hayes’ comments come amid concerns raised by various entities about the legality and potential misuse of political memecoins. Earlier this month, a progressive think tank, Public Citizen, called on the Department of Justice to investigate the legality of the TRUMP memecoin.

Ethereum ETH/USD co-founder Vitalik Buterin has also criticized political meme coins, warning that they could become "vehicles for unlimited political bribery."

The coin, which was launched just before Trump’s presidential inauguration, has 80% of its supply controlled by entities linked to Trump.

Price Action: At the time of writing, TRUMP was exchanging hands at $17.09, down 0.51% in the last 24 hours, according to data from Benzinga Pro. The coin has lost 77% of its value since its peak last month.

Read Next: 

• Gamestop’s Potential Bitcoin Move A ‘Hail Mary,’ Says Peter Schiff —Crypto Themed On Company Rips 440%

Photo by Igor Faun on Shutterstock