Not only the future of the US is dependent on the results of the incoming elections, but the price of the tokens “Trump wins” and “Trump loses” as well. Owners of the token betting on the victory of the incumbent president may receive 163% profit in a single day or lose all their investments.
Participants in the crypto market can place their bets by the end of the election day, November 3, by buying special tokens. In early August, the FTX derivatives platform released TRUMPWIN and TRUMPLOSE tokens. Currently, they are traded on the platform itself, as well as on the Poloniex and C2CX exchanges.
The dynamic “forecast” of the crypto investors
The interesting thing about these tokens is their pricing. After the election results are announced, one of the tokens will rise in price to $1, while the other will depreciate. The asset price reflects the confidence of the crypto investors in the victory of one of the two candidates – Donald Trump or Joe Biden.
By November 2, the TRUMPWIN coin, whose holders expect Trump to win, is worth only $0.38. If the sitting president is re-elected, users who bought the asset at the current price will receive a 163% profit. In this scenario, TRUMPLOSE holders will lose all investments.
Meanwhile, TRUMPLOSE token costs $0.64. Investors who bought the coin at this level can expect a profit of 56% if Trump loses or lose all investments in the token if the result is a Trump victory.
Can Trump turn the tide?
FTX released the very first investment tools depending on the results of the US presidential election at the beginning of the year. Back then, the exchange added a separate futures contract for each of the candidates. In February, the Trump contract cost well above $0.60. The situation took a drastic turn after the outbreak of the coronavirus pandemic, the economic crisis caused by it, and the collapse of the stock market. Compared to February, Trump win futures have fallen by more than 40%.
Against this background, the Biden contract has significantly risen in price. At the end of February, futures betting on his victory were worth about $0.05. Their price began to rapidly increase with the beginning of the crisis and has, since then, increased by 1180%.
