Crypto Founder Endorses Harris, His Token Price Tanks

September 09, 2024 Crypto Founder Endorses Harris, His Token Price Tanks  image

Key Takeaways

  • After reports of Ripple Labs co-founder Chris Larsen endorsing Harris for president, XRP token dumps.  
  • According to polling and MIG Reports analysis, Trump leads Harris by 12-15 points among crypto voters.
  • The increasingly important crypto voting bloc wants deregulation, financial autonomy, and fiat alternatives. 

Our Methodology

Demographics

All Voters

Sample Size

,000

Geographical Breakdown

National

Time Period

7 Days

MIG Reports leverages EyesOver technology, employing Advanced AI for precise analysis. This ensures unparalleled precision, setting a new standard. Find out more about the unique data pull for this article. 

Reports of crypto company Ripple's Co-Founder and Executive Chairman Chris Larsen publicly endorsing Kamala Harris is sparking election discussions among crypto voters. This endorsement comes amid growing recognition of cryptocurrency's importance in American culture and crypto voters becoming a coveted voting bloc. Now, crypto holders are discussing which candidate would better align with the interests of cryptocurrency investors.

Ripple Labs is a blockchain company that facilitates fast and cost-effective cross-border payments—its crypto token is called XRP. For the last three and a half years, Ripple has been embroiled in a regulatory battle with the SEC over whether XRP is an unregistered security.

  • Just hours after reports of Larsen endorsing Kamala Harris, a one-day XRP chart showed a 4.69% drop in XRP’s value.

Politicians Court Crypto Voters

The rise of cryptocurrency has created a politically engaged group whose motivations are deeply tied to economic policies, particularly those impacting crypto regulation. Both Republican and Democratic candidates are now vying for the support of these voters.

Trump’s recent strong support for the crypto community encourages those who hope for financial autonomy. Kamala Harris, while less overt in her outreach to crypto voters, may appeal to those who seek stronger or more explicit crypto regulations.

Crypto voters prioritize policies that promote financial autonomy, minimal government intervention, and cryptocurrencies like Bitcoin as hedges against inflation. This group prioritizes their views on cryptocurrency and economic policy as central to their voting decisions.

Trump vs. Harris Among Crypto Voters

MIG Reports data and weighted analysis shows:

  • 42.1% of crypto voters are likely to support Harris.
  • 57.9% of crypto voters are likely to support Trump.

Recent Fairleigh Dickinson University polling from August 2024 shows crypto voters favoring Trump over Harris by 12 points. MIG Reports’ own analysis showing a 15.8-point advantage for Trump mirrors FDU polling and is just outside a ±3 margin of error. This sizable lead for Trump may indicate a significant electoral impact as the FDU poll also shows 1 in 7 voters own crypto.

Other MIG Reports analysis from online conversations among crypto voters confirms this group leans heavily toward Donald Trump.

Within crypto-related voter discussions:

  • 70% of comments focus on the economic implications of current crypto policies.
  • 58% express negative views of Harris and the Democratic Party.
  • 68% show negative sentiment toward economic policies proposed by Harris.
  • 75% are positive about Bitcoin as a hedge against inflation among Trump supporters.
  • 61% express a sense of independence and self-sufficiency through crypto.

Sentiment analysis shows Trump’s promises to position the U.S. as the world capital of cryptocurrency and ease regulatory burdens, resonates strongly with crypto voters. In contrast, Harris’s proposed tax increases and crypto regulations generate significant skepticism, particularly from those who fear overregulation could hinder the growth of the crypto market.

Key Issues Driving Sentiment

Discussions highlight specific themes driving the crypto community's views. Economic policies and regulation are key. Discussions often contain terms like:

  • Bitcoin
  • Capital gains tax
  • Crypto regulations
  • Inflation
  • End the Federal Reserve
  • Can’t trust the government

Crypto voters express a strong desire for reduced government interference. There is often a libertarian streak within the crypto community, as many view government intervention as a direct threat to their financial independence.

Trump’s promise to reduce regulation is often received as a lifeline for crypto investors who have long been frustrated with the U.S. regulatory environment. Meanwhile, Kamala Harris is mostly viewed warily for her proposals to increase regulation and taxes, which many fear would stifle innovation.

A striking 75% of crypto-related comments express positive sentiment toward Trump’s ability to revitalize the crypto industry. Many believe he will ease regulatory burdens and promote U.S. dominance in the crypto market.

  • MIG Reports data shows Americans are generally bullish on crypto, with sentiment averaging 59% in the last 14 days and a low of 51%.

Predictive Analysis: The Crypto Voting Bloc

Crypto voters are poised to play a critical role in the 2024 election. Trump's projected advantage likely helps shape how seriously crypto voters and their policy preferences will be received by politicians in the future. In previous elections, crypto holders have not been seen as a particularly critical voting bloc. As cryptocurrency’s influence continues to grow, the 2024 election may change that.

In the current conversation, Harris faces the challenge of shaping a message that might appeal to crypto voters. Voters want her to clearly articulate her regulatory approach and how it would foster an innovation-friendly environment. Her ability to convince skeptical crypto voters that regulation can enhance rather than hinder the market could be a key factor in narrowing Trump’s lead.

Despite receiving endorsements from certain industry figures like Chris Larsen, Harris must overcome widespread skepticism about her crypto stance. Especially as her involvement in a flip-flopping and frustrating Biden administration has not left voters’ minds.

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