Crypto exchanges and trading platforms will often enable trading for new tokens. Politically-tinted tokens, however, will always raise some questions. On FTX, it seems that most traders believe that Biden will become the new US President.
FTX Tokenizes Politics
It is not the first, nor the last time the upcoming US elections will prove of relevance to cryptocurrency users. The outcome of this election will shape the future of cryptocurrency in the United States. More importantly, there are some ways to make money by betting on this outcome, which is somewhat intriguing.
Putting a wager on the next US President proves to be of great interest to FTX users. More specifically, users can buy tokens related to PRESIDENT 2020. BIDEN tokens are up by 7% in the past 24 hours, primarily thanks to the Presidential debate taking place last night. The TRUMP token is down by 7.34% in the same time span.
Whereas most exchanges create these tokens without value, FTX does it differently, The tokens represent futures contracts that expire to $1 if the candidate wins. The other futures will drop to $0, which is fairly obvious. As such, there is a genuine monetary incentive attributed to the US elections all of a sudden. A risky game to play, as the outcome is anything but certain.
Whether these markets will see much trading volume, remains to be seen. As the Presidential elections are in full swing, the correlation between the tokens may begin to shift a bit. Who will come out on top, remains to be seen. These tokens are only available to FTX users outside of the United States as well. That may limit the appeal of these tokens ever so slightly.
Wagering on US Elections Becomes Popular
Several other tokens have been issued to represent the US elections as of late. There are Trump Wins Tokens, and Trump Loses Tokens on Poloniex, for example. So far, the TRUMPWIN token is down by 7.81% in the past 24 hours. This is akin to what is happening on the FTX market with its native tokens.
Augur has its own native prediction tokens for the US elections as well. The YES Trump Augur Prediction Token is currently trading at $0.457, which is on par with the tokens on FTX and Poloniex. All of this seems to indicate that there will be a new US President later this year. Going by statistics in crypto land is not an official indicator of where things may be headed, though.