The recent crypto purchase of United States Congressman Mike Collins has triggered a significant surge in the trading volume of Velodrome (VELO).

Politician Signals Support For Velodrome 

Velodrome Finance is an Automated Market Maker (AMM) on Optimism. It utilizes VELO as the utility token earned by liquidity providers. Community members who wish to participate in governance can lock the VELO tokens in order to do so. Voters are also rewarded with protocol trading.

BREAKING: Representative Mike Collins just disclosed a purchase of a cryptocurrency called Velodrome.

The coin appears to have a market cap of less than $100M.

This is the first time we have ever seen a politician trade it. pic.twitter.com/lydptNO5Bq

— Quiver Quantitative (@QuiverQuant) June 17, 2024

According to CoinMarketCap data, Velodrome’s trading volume hit $2.4 million after bagging more than a 67% increase within the last 24 hours. This spike was discovered after Representative Collins announced that he has purchase the digital asset. His purchase makes him the first documented politician to ever engage with the cryptocurrency that has a market capitalization of less than $100 million.

Collins stated that he purchased VELO on May 15, the time when the digital currency was around $0.13. His purchase is pegged to be round $1,001 and $15,000, suggesting that he may have acquired as much as 100,000 units of VELO. Since the time of the Congressman’s purchase, the crypto has seen some fluctuations that eventually led to a downtrend in its price.

At press time, VELO was down by 4.33% and currently trading at $0.09653. The surge in trading volume, which reflects increased investors’ activities, is likely to contribute to a price recovery in the near future. This might be complemented by other events like a broad crypto ecosystem bull run.

U.S Politicians Rally Round Cryptocurrencies

Notably, Velodrome Finance is not Rep Collins first crypto purchase as he is largely known for his appetite for digital assets. He once highlighted his Ethereum (ETH) purchase which he said was worth $65,000 at the time of acquisition.

With the 2024 presidential elections only about five months away, more politicians have adopted cryptocurrencies. Donald Trump now sees himself as the “Crypto President” after moving against the asset class for a very long time. He has plans to support crypto companies once he is elected into office. Trump’s campaign team is open to accepting crypto donations.

Similarly, President Joe Biden who is also an aspirant in the upcoming elections has launched  his crypto outreach. His campaign team is now approaching crypto industry leaders, seeking guidance on proactive crypto policies moving ahead.

Overall, there is a growing interest for digital currencies amongst United States policymakers and politicians.

Read More: Shiba Inu (SHIB) Exec Touts Important Industry Collaboration, Will This Reboot Price

The post Velodrome (VELO) Volume Jumps 67% As US Lawmaker Discloses Stake appeared first on CoinGape.

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Filed under: News - @ June 17, 2024 5:21 pm