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Memecoins: Are They Really ‘Just Better’? GME and AMC Drop Raises Questions

  • Exciting Surges and Drops in GameStop and AMC!
  • Discover the Future of Memecoins over Meme Stocks!

The recent surge was thrilling but short-lived. GameStop (GME), a Solana [SOL] -based memecoin, experienced a sharp decline after its initial spike with the return of Roaring Kitty, landing it in the red zone.

Reports from CoinMarketCap show GME suffered a significant drop of 29.51% within the last 24 hours.

Additionally, data from TradingView indicates a 5.17% decrease for AMC Entertainment Holdings Inc. (AMC).

These dramatic shifts have ignited intense debates among investors and analysts, especially following GME and AMC’s remarkable surges of 75% and 89% on May 15th.

Why the Concern Among Executives?

Sharing insights on the situation, CEO of Superstate, Robert Leshner, expressed his sympathy for hedge funds or individuals who were short on GameStop and AMC in a recent podcast conversation at “The Chopping Block”:

“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.”

Former SEC Chair, Jay Clayton, echoed this sentiment in a separate conversation with CNBC:

“It bothers me on many levels—It’s a lot closer to gambling than trading and it is certainly not investing.”

Surprising Social Media Influence

The story gets even more intriguing as it questions the impact of a single tweet on market movements.

In response to these inquiries, Leshner remarked:

“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.”

Clayton added his perspective:

“Is a Tweet really investment advice? We’ve learned over the last five years that a Tweet is not investment advice.”

With uncertainty looming, analysts remain divided on whether investors will persist or face delisting due to manipulation concerns.

Optimistic Outlook for Memecoins

Despite the FUD (Fear, Uncertainty, and Doubt), Tom Schmidt, partner at Dragonfly, shared:

“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.”

Managing Partner at Dragonfly, Haseeb Qureshi, added:

“Over time people will just converge on trading memecoins rather than trading meme stocks because they’re just better.”

Data from CoinGecko supports this claim, showcasing a $57.5 billion meme market cap with a 3.4% change in the past 24 hours.

Next: Bitcoin fees hit 3-month low: A $12M drop, explained

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