The survey revealed that there is bipartisan interest in candidates’ crypto policies, and also indicated that 25% of Democrats and 21% of Republicans are more likely to support pro-crypto candidates. Meanwhile, Trump's endorsed DeFi project, World Liberty Financial, fell short in its public token sale, and is facing serious skepticism from multiple industry experts.
Crypto Issues Shape Voter Preferences in 2024
A recent survey that was conducted by The Digital Chamber revealed that about 26 million voters in the United States are part of a “crypto voting bloc.” These voters see a candidate's stance on crypto policy as a crucial factor when deciding who to support in the upcoming November election.
The survey was released on Oct. 17, and found that one in seven respondents, or 16%, considered crypto issues to be “extremely” or “very” important in their voting decision. This segment of the electorate indicated that they will be “much” or “somewhat” more inclined to vote for a candidate who supports pro-crypto policies.
Crypto voting bloc (Source: The Digital Chamber)
The results also revealed just how bipartisan this crypto-influenced voter group is. The data showed that at least 25% of Democrats and 21% of Republicans stated that a candidate’s stance on crypto will increase their likelihood of voting for them.
Perianne Boring, the founder and CEO of The Digital Chamber, believes that these findings should serve as a “wake-up call for policymakers,” especially with experts predicting a tight race for the White House. She is convinced that the bipartisan crypto voting bloc has the potential to sway key races.
The survey also shed some light on demographic differences in the importance placed on crypto policies. Two in five Black voters considered a candidate’s stance on cryptocurrency as important for their vote. This proportion was more than double that of white voters. Additionally, the majority of respondents across both political parties believed that supporting the crypto industry should be at least a medium-level priority for the next president and Congress. Around a third of Democrats and a quarter of Republicans felt it should be a “high” or “very high” priority.
Supporting crypto is a priority (Source: The Digital Chamber)
While the Pew Research report that was released last month did not rank crypto as a major election issue among its 9,720 respondents, it did find that 81% of voters considered economic policy as the top factor influencing their vote. Other important issues included healthcare and Supreme Court appointments.
However, there was a very noticeable divide between the parties. Supporters of Republican candidate Donald Trump identified the economy, immigration, and violent crime as their primary concerns. Backers of Democratic candidate Kamala Harris prioritized healthcare, Supreme Court appointments, and the economy.
More Polls Prove Crypto Becomes Key Issue
Craig Salm, Grayscale’s chief legal officer, stated on Oct. 16 that he believes more than half of US voters are inclined to support a pro-crypto candidate in the upcoming election. This insight comes from a poll that was conducted by Grayscale in partnership with The Harris Poll. One of the main goals of the poll was to gauge voter attitudes toward crypto.
During an interview on Serious XM Business Radio with Janet Alvarez, Salm pointed out that two out of five Americans are paying more attention to a candidate’s stance on Bitcoin and other crypto assets compared to past elections. He also shared that the poll clearly indicates Americans care about whether a candidate supports cryptocurrency.
The November US presidential election will see Republican nominee Donald Trump facing off against Democrat Kamala Harris. Trump has made it clear that he plans to make America "the crypto capital of the world," while Harris has been a bit more reserved about her stance on the industry. While Harris is seen as more favorable toward cryptocurrency than President Joe Biden, she is not as pro-industry as her rival Trump.
On Oct. 17, election odds on Kalshi showed that Trump had a 58% chance of winning the election, compared to 42% for Harris. Polymarket places Trump’s odds even higher at 60.7%, with Harris trailing at 39.1%.
Trump vs Harris presidential odds (Source: Polymarket)
Inflation is also a serious concern among voters. In fact, 30% of poll respondents identified it as the most pressing issue facing the country. Salm suggested that assets like Bitcoin and Ethereum could play an important role in addressing this concern, as they can act as hedges against inflation and stores of value.
Since September, Kamala Harris has taken steps to strengthen her position on crypto by including blockchain technology among the emerging sectors where she plans for the US to maintain its leading role.
Trump's DeFi Project Struggles
Trump recently caught the attention of the crypto community, but not necessarily for the right reasons. World Liberty Financial, the DeFi protocol that is endorsed by Donald Trump, had a very underwhelming debut with its token sale as it only generated about $12.8 million on its first day.
This was far short of the $300 million target. Around 857 million WLFI tokens were sold, which is only a fraction of the 20 billion tokens that are available. The project's “gold paper” indicated the public sale was expected to sell 20% of the token supply and achieve a $1.5 billion fully diluted valuation. Despite Trump's public backing of the project, demand for the protocol fell way below expectations.
At first, the hype surrounding the project was fueled by Trump’s association. However, Tezos CEO Kathleen Breitman suggested that the former president's involvement was the project’s only real differentiator from other DeFi projects already in the market. Investors were also a bit taken aback by the token's non-transferability for the first year, which limited its value and liquidity. Unlocking the tokens will require a governance vote and could only happen after a 12-month period.
The project's first phase involves launching a DeFi lending platform that is similar to Aave on the Ethereum layer-2 network Scroll. This will allow users to lend and borrow assets like Bitcoin, Ethereum, and stablecoins. WLFI will serve as the governance token for the platform.
Some industry experts are a bit skeptical about the project's prospects. Rashan Colbert of dYdX Trading believes that the crypto community grew wary of projects that appear to be cash grabs, especially as political connections become more frequent. Alexander Blume, the CEO of Two Prime, pointed out the lack of innovation in the project, and believes it is reliant on code that is very similar to Dough Finance, which suffered a $1.8 million flash loan attack earlier this year. Interestingly, Dough Finance’s co-founders are also involved in World Liberty, along with Steve and Zach Witkoff.
Rumi Morales of Outlier Ventures is also a bit cautious, and specifically pointed out how rushed the project's gold paper is, as well as certain inconsistencies in token eligibility. The documentation suggested that tokens were only available to accredited US investors, qualified UK investors, and others outside these jurisdictions, yet the current version restricted sales to non-US individuals.
Matt Hougan, Bitwise's Chief Investment Officer, even criticized the project as a “meme masquerading as a utility project,” and stated that DeFi cannot be effectively centered around a personality. He said the project's focus on Trump clashes with the decentralized ethos of DeFi.
The WLF project was first hinted at by Donald Trump Jr. and Eric Trump in August. Since then, reports have emerged about the project's connection to Dough Finance, which added to concerns about its security and originality. According to the project's gold paper, the first $30 million of net protocol revenue would cover expenses, and the remaining funds will be allocated to DT Marks DEFI LLC.
