- GameStop and AMC saw surges and declines, prompting discussions on market behavior.
- Memecoins may surpass meme stocks due to perceived advantages.
The surge was short-lived. GameStop (GME), a Solana [SOL] -based memecoin that spiked after the resurgence of Roaring Kitty, is now bleeding in reds.
According to CoinMarketCap, GME saw a notable decline of 29.51% in the past 24 hours.
Moreover, TradingView data indicates a 5.17% drop for AMC Entertainment Holdings Inc. (AMC).
These developments have sparked intense debates among investors and analysts, particularly in light of GME and AMC’s staggering 75% and 89% spikes on the 15th of May.
Why are the execs disappointed?
Providing insights on the same, Robert Leshner, CEO of Superstate in a recent conversation at “The Chopping Block” podcast said,
“I feel bad for any hedge funds or individuals that were short GameStop and AMC. This was a market being irrational and inefficient, I don’t think anyone is calling this an efficient or rational market.”
Adding to the disappointment, Former SEC Chair, Jay Clayton in a separate conversation with CNBC said,
“It bothers me on many levels— It’s a lot closer to gambling than trading and it is certainly not investing.”
Shocking social media trends
Well, the story doesn’t end here, as it raises questions about how a tweet can have such a significant influence on market dynamics.
Replying to the above concerns, Leshner said,
“The fact that meme on Twitter can move a stock from $15 to $80 in two days of trading should continue to scare people about the irrationality of financial markets.”
Reflecting similar opinions, Clayton added,
“Is a Tweet really investment advice? We’ve learned over the last five years that a Tweet is not investment advice.”
Amid such uncertainty, analysts remain divided on whether investors will persist or be delisted due to market manipulation concerns.
The future still looks bright for memecoins
Despite such FUD (Fear, Uncertainty, and Doubt), Tom Schmidt, partner at Dragonfly added,
“The memecoin markets are more orderly, there’s no circuit breaker, you can always log in and you’re not going to get blocked out.”
Echoing a similar sentiment, Haseeb Qureshi, Managing Partner at Dragonfly, noted,
“Over time people will just converge on trading memecoins rather than trading meme stocks because they’re just better.”
CoinGecko’s data further confirmed this statement, indicating a $57.5 billion meme market cap with a 3.4% change in the past 24 hours.
