Memecoins
Memecoins ‘Simply Better’: GME, AMC Drop Raises Questions
- GameStop and AMC saw rises and falls, prompting discussions about market behavior.
- Memecoins could outperform meme stocks due to perceived advantages.
The surge was short-lived. GameStop (GME), a Solana [SOL] The memecoin, which saw a spike following the resurgence of Roaring Kitty, is now bleeding red.
Second CoinMarketCapGME has seen a notable decline of 29.51% in the last 24 hours.
Furthermore, TradingView data indicates a decline of 5.17% for AMC Entertainment Holdings Inc. (AMC).
These developments have sparked intense debate among investors and analysts, particularly in light of the staggering 75% and 89% peaks recorded by GME and AMC on May 15th.
Why are executives disappointed?
Robert Leshner, CEO of Superstate, provided insights on the matter in a recent conversation on “The Chopping Block” podcast he said,
“I feel sorry for any hedge funds or individuals who were short GameStop and AMC. This was an irrational and inefficient market, I don’t think anyone calls it an efficient or rational market.”
Adding to the disappointment, former SEC Chairman Jay Clayton, in a separate meeting conversation with CNBC he said,
“It bothers me on many levels: it’s much closer to gambling than trading and it’s certainly not an investment.”
Shocking trends on social media
Well, the story doesn’t end there, as it raises questions about how a tweet can have such a significant influence on market dynamics.
Responding to the above concerns, Leshner said,
“The fact that a meme on Twitter can move a stock from $15 to $80 in two trading days should continue to scare people about the irrationality of financial markets.”
Reflecting similar views, Clayton added,
“Is a Tweet really investment advice? Over the last five years we have learned that a Tweet is not investment advice.”
Amid such uncertainty, analysts remain divided over whether investors will persist or be delisted due to concerns about market manipulation.
The future still looks bright for memecoins
Despite such FUD (Fear, Uncertainty, and Doubt), Dragonfly partner Tom Schmidt added,
“Memecoin markets are more orderly, there are no circuit breakers, you can always log in and you won’t be blocked.”
Echoing a similar sentiment, Haseeb Qureshi, managing partner of Dragonfly, noted:
“Over time people will simply converge on trading memecoins rather than trading meme stocks because they are simply better.”
CoinGecko’s data further confirmed this statement, indicating a meme market capitalization of $57.5 billion with a change of 3.4% in the last 24 hours.