Leading crypto industry figures have highlighted Dogecoin as the main potential beneficiary of Donald Trump’s victory in the upcoming US elections. Andrew Kang, founder and CEO of Mechanism Capital, took to X to express his insights on the subject. “One of the most interesting ways to express a ‘Trump Win’ trade would probably be to own DOGE (and other memes),” Kang wrote.
“Not only do you have a high chance of a Doge ETF, but the Department of Government Efficiency (DOGE) would be in the headlines every week and would be boosted by Trump,” he added. Well-known Dogecoin advocate Elon Musk has been proposed by US presidential candidate Donald Trump to lead a Department of Government Efficiency if Trump wins a second term. This commission aims to conduct a comprehensive audit of federal finances and performance, and could be in the spotlight for many months in the event of a Trump victory.
Related Reading
Imran Lakha, a seasoned professional options trader with two decades of experience, echoed Kang’s sentiments. “We mentioned this in last week’s podcast with Raoul Pal”, he commented, pointing to a deeper discussion on the topic.
Why Dogecoin Could Be the Top ‘Trump Win’ Trade
Raoul Pal, co-founder of Real Vision Group and Global Macro Investor (GMI), and former head of equity and equity derivatives hedge fund sales at Goldman Sachs, elaborate about the dynamics of memecoins and specifically Dogecoin during the podcast. “The other thing about memecoins that’s really interesting is Bitcoin, now that there’s such a heavy narrative that you get around it. You need to understand the history of money and know, blah, blah, blah,” Pal noted. “And memecoins are like the meme number going up. Granted, this is a lot easier and less inhibiting for a 25-year-old.”
Pal emphasized the appeal of memecoins to younger investors, attributing it to the simple allure of potential gains. “There’s a trend, so now you’re just picking up on an attention trend,” he explained. “Look, don’t judge them with their type of wealth in the financial market. They will all explode; they know what they are doing – that attention is a fleeting game – and I will bet how long that attention will last and how valuable it will become, knowing that it will not be persistent.”
Related Reading
He also highlighted Dogecoin’s historical performance and chart patterns. “In the previous cycle, Dogecoin reached US$100 billion. Therefore, there are many advantages to most of them. People don’t understand that the DOGE chart is a killer weekly chart,” noted Pal. “If I just look at the weekly chart of (DOGE), there’s been a big wedge for a few years, spike, huge wedge, spike, and it’s a perfect thing. It’s like it was a beautiful thing, that graph. So I’m long DOGE.
Considering Elon Musk’s involvement, Pal suggested that the Tesla and SpaceX CEO had intentionally was silent about Dogecoin recently. He speculated that Musk, who aligned with Trumpmay be strategically avoiding conflicts with the Biden-Harris administration because “there are only so many battles Elon can fight at once” as he plans to integrate Dogecoin into X after Trump is elected.
He speculated about Musk’s strategic positioning: “I just think he doesn’t want this fight, but I still think it’s going to happen. That’s why he’s friends with Trump, right? Because if he’s friends enough with Trump and Trump comes in, then it’s going to be an easier fight for him.”
Pal suggested that integrating Dogecoin into platforms like X could revolutionize global transactions. “If you used DOGE as a currency – because unlike Facebook Libra, it is not launching a coin; it exists – and then we could all use DOGE payments on Twitter,” he said. “The issue is that there is a big fight with the government when you have a platform of 500 million people and you are going to introduce a currency on it.”
At press time, DOGE was trading at $0.12512.
Featured image of X, chart from TradingView.com