In A Nutshell:
President Joe Biden has decided not to seek reelection in the 2024 Presidential Election, endorsing Vice President Kamala Harris as his successor. The decision follows mounting pressure from Democratic leaders and former President Barack Obama, prompting significant shifts in political prediction markets and cryptocurrency tokens linked to potential candidates.U.S. President Joe Biden has announced he will not seek reelection in the 2024 Presidential Election. In a statement on Sunday, Biden expressed that stepping down is in the best interests of both his party and the country. He also extended his full support and endorsement to Vice President Kamala Harris as the Democratic Party's nominee.
Biden has been under increasing pressure to withdraw from the race. Several current senators have urged him to step aside, and even former President Barack Obama reportedly advised him to do so.
Following Biden's announcement, the memecoin named Jeo Boden saw a sharp decline of 44%. In contrast, other tokens associated with potential candidates experienced significant gains. The memecoin Kamala Horris rose by 52%, while Gabin Noosum jumped by 115%. Tokens linked to Republican candidate Donald Trump also saw an increase, with Doland Tremp gaining 24%.
On the prediction market Polymarket, Biden's odds of winning the election have plummeted to below 1%, while Kamala Harris now stands at 26%. Trump's odds remain steady at around 63%.
Donald Trump responded to Biden's decision on Truth Social, criticizing Biden's fitness for office and reiterating his belief that Biden was never suitable to serve as President.
Biden's decision comes after a poor debate performance last month that sparked discussions about his potential replacement. Top Democrats, including Senate Majority Leader Chuck Schumer, have encouraged Biden to step down. Former House Speaker Nancy Pelosi highlighted polling data suggesting Biden would struggle to defeat Trump and warned that his candidacy could jeopardize the Democrats' chances of winning the House.
As the Democratic National Convention in Chicago approaches, it remains uncertain if the party will follow Biden's endorsement and nominate Harris. According to Polymarket, Harris has an 81% chance of being the nominee, with a generic 'Other' candidate at 12%.
In response to Biden's endorsement, VP Harris expressed her gratitude and commitment to earning the nomination.
Several other potential Democratic challengers have been mentioned, including California Governor Gavin Newsom, Illinois Governor J.B. Pritzker, and Michigan Governor Gretchen Whitmer. While Harris and Whitmer have not taken strong positions on cryptocurrency, Newsom has shown a more nuanced stance, being optimistic about Web3 and innovation but cautious about cryptocurrency.
Cody Carbone, vice president of policy for the Chamber of Digital Commerce, noted Newsom's balanced approach, emphasizing his general support for Web3 and innovation despite his reservations about cryptocurrency.
