Joe Biden drops out of presidential race, BODEN token plummets 44%

U.S. President Joe Biden will not seek reelection in the upcoming 2024 U.S. Presidential Election.

Biden said he believed stepping down was in the interests of the party and the country, according to a statement on Sunday. Biden offered his "full support and endorsement" for Vice President Kamala Harris to replace him as the Democratic Party's nominee in the race in a follow-up post on X. 

Biden had been facing increasing pressure to bow out over the last few weeks, with multiple current senators calling on him to step out of the race and even former President Barack Obama reportedly suggesting he do so.

Following the news, the memecoin Jeo Boden dropped by 44%. At the same time, tokens for other possible contenders saw notable gains. In particular, a memecoin called Kamala Horris rose 52% while the memecoin Gabin Noosum jumped 115%.

Tokens named after Republican Presidential candidate Donald Trump saw gains in light of his contender dropping out. Doland Tremp was the main memecoin affected, gaining 24% since the story broke.

Over on the prediction market Polymarket, the odds for Biden to win the election have unsurprisingly dropped to below 1%, while Kamala Harris now stands at 26%. Trump remains around the same at 63%.

Donald Trump responded to Biden's announcement with a post on Truth Social, writing in part, "Crooked Joe Biden was not fit to run for President, and is certainly not fit to serve - And never was!" 

Biden bows to party pressure

Biden had faced mounting pressure after a weak debate performance last month that jolted discussions around possibly replacing him as a presidential candidate. Over the past week, top Democrats including Senate Majority Leader Chuck Schumer have told him to drop out, according to ABC News. Former House Speaker Nancy Pelosi told Biden that polling shows that he cannot defeat GOP presidential candidate and former president Donald Trump and said Biden could "destroy Democrats' chances of winning the House," according to CNN.

As Democrats gear up to select a presidential nominee at the Democratic National Convention next month in Chicago, it's unclear whether the Democratic party will follow Biden's endorsement and nominate Harris. A top Polymarket contract currently has VP Harris's odds of being the nominee at 81%, with a generic 'Other' candidate at 12%. 

"I am honored to have the President's endorsement and my intention is to earn and win this nomination," VP Harris wrote in a statement released following Biden's announcement. 

News outlets have reported a handful of potential Democratic challengers aside from Harris, including California Gov. Gavin Newsom, Illinois Gov. J.B. Pritzker, and Michigan Gov. Gretchen Whitmer.

VP Harris and Whitmer have not taken a firm stance on crypto. Newsom has been optimistic toward Web3 and innovation, but less so with crypto, Cody Carbone, vice president of policy for the Chamber of Digital Commerce told The Block last month.

"When it comes to Newsom, he has been forced to be somewhat neutral when it comes to cryptocurrency, if not somewhat pessimistic, but somewhat optimistic about Web3 generally and innovation, which I think is a great thing," Carbone said.

This is a developing story.