- The recent surge in GameStop, AMC, and memecoin values has been linked to the social media influence of Roaring Kitty.
- Former SEC Chair Jay Clayton has raised concerns about the ethics of market manipulation via social media.
- Despite criticism, Solana meme coins have experienced significant growth.
Amid a downturn in the market, GameStop, AMC, and memecoins surge, raising questions about the role of social media in market manipulation.
Surge in GameStop, AMC, and Memecoin Values
On May 14th, while leading cryptocurrencies such as Bitcoin were experiencing a downturn, shares of GameStop and AMC Entertainment Holdings were surging. Reportedly, GameStop and AMC saw increases of 75% and 89% respectively. This shift also triggered a frenzy in meme coins, with several showing substantial gains. For instance, Roaring Kitty jumped by 175%, and the Wall Street Bets token surged by an astonishing 1,121% against the U.S. dollar.
Role of Social Media in Market Manipulation
The surge in GameStop and AMC shares began with Roaring Kitty’s return to social media on May 13th and has persisted with minimal pullback. This highlights the power of social media and the strong influence of key figures in the online trading community. This scenario mirrors instances where Elon Musk influenced Dogecoin’s price through his public statements in the past. However, this has raised questions about the legality and ethics of such market manipulation.
Criticism from Former SEC Chair
Former SEC Chair, Jay Clayton, expressed disappointment in a recent conversation with CNBC, stating, “It bothers me on many levels— It’s a lot closer to gambling than trading and it is certainly not investing.” He further questioned the situation, asking, “Is a Tweet really investment advice? We’ve learned over the last five years that a Tweet is not investment advice.”
Surge in Solana Meme Coins
Despite such criticism, Solana meme coins have experienced a significant surge. Notably, Dogwifhat, Bonk, and Popcat have benefited from the positive trends currently observed in SOL meme coins. As we move forward into the week, it will be interesting to see how things unfold and what the future holds for the meme coin industry.
Conclusion
The recent surge in GameStop, AMC, and memecoin values has raised questions about the role and ethics of social media in market manipulation. Despite criticism, meme coins continue to experience growth, indicating a potential future trend in the industry.
