The upcoming Trump-Biden debate could create heightened volatility for PolitiFi tokens, experts say. How pronounced can volatility risks be? And will this segment be interesting after the November presidential election?
Volatility risks
1. Potentially very high. Political meme tokens are by nature highly speculative and sensitive to news and events.
2. The debate could cause prices to swing wildly in both directions, depending on how each candidate performs.
3. Volatility may spike due to the low liquidity of some tokens.
4. The risk of market manipulation is also high, given the small capitalization of many tokens.
Post-election interest
1. It will probably decrease, since the key driver – the election race – will be out of the picture.
2. However, some tokens may remain popular as a way of expressing political views or speculating on the actions of the elected president.
3. New tokens could be related to the winning candidate or his policies.
4. Interest may resume as the next election approaches.
It should also be noted that this segment is extremely risky and unpredictable. Investors should exercise extreme caution and be aware that most of these tokens might lose value after the election.