In a surprising turn of events, President Joe Biden announced on Sunday that he will not seek reelection in the 2024 U.S. Presidential Election. Biden stated that stepping down was in the best interests of both his party and the country. He also offered his “full support and endorsement” for Vice President Kamala Harris to be the Democratic Party’s nominee.
Biden has faced increasing pressure to step aside over the past few weeks. Multiple senators and even former President Barack Obama reportedly urged him to withdraw. Biden’s decision follows a weak debate performance last month that fueled discussions about his viability as a candidate. Top Democrats, including Senate Majority Leader Chuck Schumer, have advised him to bow out. Former House Speaker Nancy Pelosi indicated that polling showed Biden could not defeat GOP candidate Donald Trump and might harm the Democrats’ chances of winning the House.
The political shake-up sent ripples through the crypto world. The memecoin named after Biden, Jeo Boden (BODEN), plummeted by 44%. Conversely, tokens for other potential candidates saw notable gains. The Kamala Horris memecoin surged 52%, and the Gabin Noosum token skyrocketed by 115%.
Even Republican-related tokens reacted to the news. Doland Tremp, a memecoin linked to Donald Trump, gained 24% since the announcement. Over on the prediction market Polymarket, Biden’s odds of winning the election dropped to below 1%, while Kamala Harris’s odds rose to 26%. Trump remained steady at around 63%.
Donald Trump responded to Biden’s announcement on Truth Social, stating, “Crooked Joe Biden was not fit to run for President, and is certainly not fit to serve – And never was!”
With the Democratic National Convention approaching next month in Chicago, it’s unclear if the party will follow Biden’s endorsement and nominate Harris. Currently, Polymarket places Harris’s odds of being the nominee at 81%, with a generic ‘Other’ candidate at 12%.
“I am honored to have the President’s endorsement and my intention is to earn and win this nomination,” VP Harris said in a statement.
Potential Democratic challengers aside from Harris include California Gov. Gavin Newsom, Illinois Gov. J.B. Pritzker, and Michigan Gov. Gretchen Whitmer. Newsom has shown optimism toward Web3 and innovation but has been neutral to pessimistic about crypto.
Cody Carbone, vice president of policy for the Chamber of Digital Commerce, commented, “When it comes to Newsom, he has been forced to be somewhat neutral when it comes to cryptocurrency, if not somewhat pessimistic, but somewhat optimistic about Web3 generally and innovation, which I think is a great thing.”
As the political landscape shifts, the crypto market continues to react strongly, highlighting the speculative nature of memecoins and their sensitivity to news and public perceptions. Investors in these tokens should be prepared for extreme volatility as the race for the next U.S. President unfolds.