Dogecoin Is The Top ‘Trump Victory’ Trade, Says Investment Firm CEO
2024-10-17

Leading figures in the crypto sector have highlighted Dogecoin as the potential top beneficiary of a victory by Donald Trump in upcoming US elections. Andrew Kang, founder and CEO of Mechanism Capital, took to X to express his insights on the matter. “One of the most interesting ways to express a ‘Trump Victory’ trade would probably be owning DOGE (and other memes),” Kang wrote.
“Not only do you have high odds of a Doge ETF but the Department of Government Efficiency (DOGE) would be making headlines every week and be pushed forward by Trump,” he added. Well-known Dogecoin advocate Elon Musk has been proposed by US presidential nominee 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 case of a Trump victory.
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 Victory’ Trade
Raoul Pal, co-founder of Real Vision Group and Global Macro Investor (GMI), and former head of hedge fund sales in equities and equity derivatives at Goldman Sachs, elaborated on the dynamics of memecoins and specifically Dogecoin during the podcast. “The other thing about memecoins that is really interesting is Bitcoin now there’s such a heavy narrative you go around it. You need to understand the history of money and you know blah blah blah,” Pal remarked. “And memecoins are like the meme number that goes up. Right, that’s so much easier and much less inhibiting to a 25-year-old.”
Pal emphasized the appeal of memecoins to younger investors, attributing it to the straightforward allure of potential gains. “There’s a trend, so now you’re just capturing an attention trend,” he explained. “Look, don’t judge them with your kind of financial market wealth. They’re all going to get blown up; they know what they’re doing—which is attention is fleeting gambling—and I’m going to gamble how long that attention goes on for and how valuable it becomes, knowing that it’s not going to be persistent.”
He also highlighted Dogecoin’s historical performance and chart patterns. “In the previous cycle, Dogecoin went to $100 billion. So there’s a lot of upside on most of them. People don’t understand that the DOGE chart is a killer weekly chart,” Pal noted. “If I just look at the weekly chart of [DOGE], there’s been a massive wedge for a few years, spike, massive wedge, spike, and it’s like this perfect thing. It’s like it’s a thing of beauty, that chart. So I’m long DOGE.”
Regarding Elon Musk’s involvement, Pal suggested that the Tesla and SpaceX CEO has intentionally went silent about Dogecoin recently. He speculated that Musk, who has aligned himself with Trump, may be strategically avoiding conflicts with the Biden-Harris administration because “there’s only a certain number of battles Elon can take at once,” while planning to integrate Dogecoin into X after Trump is elected.
He speculated on Musk’s strategic positioning: “I just think he doesn’t want to have that fight, but I still think it’s gonna happen. That’s why he’s chummy with Trump, right? Because if he’s chummy enough with Trump and Trump gets in, then that’ll be an easier fight for him.”
Pal suggested that integrating Dogecoin into platforms like X could revolutionize global transactions. “If you were to use DOGE as the currency—because unlike Facebook Libra, he’s not launching a currency; it exists—and then we could all use DOGE payments on Twitter,” he said. “The issue is that it’s a big fight with the government when you’ve got a platform of 500 million people and you’re going to introduce a currency onto it.”
At press time, DOGE traded at $0.12512.