- Roaring Kitty crypto and AMC surged amid the market downturn.
- Former SEC Chair Jay Clayton questions ethics of market manipulation via social media.
As an experienced financial analyst, I find the recent market events surrounding Roaring Kitty’s influence on cryptocurrencies and meme stocks, such as AMC and GameStop, quite intriguing. The power of social media and its impact on financial markets is a phenomenon that has been gaining momentum in recent years.
I noticed an intriguing contrast on the 14th of May. While Bitcoin (BTC) and other prominent cryptocurrencies were experiencing significant losses, shares of GameStop (GME) and AMC Entertainment Holdings (AMC) were gaining ground instead.
Reportedly, GME and AMC skyrocketed by 75% and 89%, respectively.
This significant change gave rise to a meme coin craze, as numerous meme coins experienced impressive growth.
As a researcher studying financial markets, I came across some remarkable price movements. Roaring Kitty’s stock saw a staggering increase of 175%, while the token from Wall Street Bets experienced an astonishing surge of approximately 1,121% against the U.S. dollar.
Execs weighs in
It was surprising to note that Jim Cramer, the host of CNBC’s “Mad Money” program, held a rather distinct viewpoint regarding the situation at hand.
Known for his aggressive investment strategies, Cramer in a recent stream at CNBC said,
If I couldn’t imagine Gamestop, represented by the ticker symbol $GME, trading at prices as high as $64 or even $44, then it might be prudent to consider selling your shares.
Well, he didn’t stop there and while quoting AMC he noted,
“$AMC is like a dead man walking.”
As a researcher studying the stock market trends, I’ve observed an intriguing development. The significant increase in share prices for GameStop (GME) and AMC Entertainment (AMC) began after Roaring Kitty reemerged on social media platforms on May 13th. This upward trend has continued with only minor interruptions.
Social media showcases the significant impact and sway of influential members within the online trading sphere.
The role of social media
In the past, Elon Musk’s public comments have had a significant impact on Dogecoin‘s market value, similar to this current situation.
All this brings us to a question — should such market manipulation be considered legal?
In a recent interview with CNBC, Jay Clayton, who previously served as the Chair of the Securities and Exchange Commission (SEC), shared his feelings of disappointment.
I have concerns about this situation from multiple perspectives. It bears more resemblance to gambling than traditional trading, and it falls short of meeting the definition of investing.
Questioning the entire situation at play, Clayton added,
“A Tweet shouldn’t be considered investment advice. Over the past five years, we’ve come to understand that.”
Good day for Solana meme coins
Despite such criticism, Solana [SOL] meme coins have experienced a significant surge.
Significantly, Doge (WIF), Bonk (BONK), and Popcat (POPCAT) have experienced growth due to the favorable conditions surrounding SOL meme coins at present.
Moving ahead in the week, it’s intriguing to observe the developments and unravel the uncertainty surrounding the future of the meme coin sector.
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2024-05-15 18:16