- Roaring Kitty crypto and AMC surged amid the market downturn.
- Former SEC Chair Jay Clayton questions ethics of market manipulation via social media.
On the 14th of May, while Bitcoin [BTC] and other leading cryptocurrencies were bleeding, shares of GameStop [GME] and AMC Entertainment Holdings [AMC] were surging.
Reportedly, GME and AMC skyrocketed by 75% and 89%, respectively.
This dramatic shift also triggered a meme coin frenzy, with several meme coins showing substantial gains.
For instance, Roaring Kitty [ROAR] jumped by 175%, and the Wall Street Bets token surged by an astonishing 1,121% against the U.S. dollar.
Execs weighs in
Strangely, Jim Cramer, host of the CNBC television show “Mad Money” had quite a unique perspective on the situation.
Known for his aggressive investment strategies, Cramer in a recent stream at CNBC said,
“I can’t see Gamestop, $GME, trading at $64 or even $44 and so, the responsible move is to sell, sell, sell.”
Well, he didn’t stop there and while quoting AMC he noted,
“$AMC is like a dead man walking.”
The surge in GME and AMC shares began with Roaring Kitty’s return on social media on the 13th of May 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.
The role of social media
This scenario mirrors instances where Elon Musk influenced Dogecoin’s price through his public statements in the past.
All this brings us to a question — should such market manipulation be considered legal?
Expressing disappointment on the same, Former SEC Chair, Jay Clayton in a recent 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.”
Questioning the entire situation at play, Clayton added,
“Is a Tweet really investment advice? We’ve learned over the last five years that a Tweet is not investment advice.”
Good day for Solana meme coins
Despite such criticism, Solana [SOL] meme coins have experienced a significant surge.
Notably, Dogwifhat [WIF], Bonk [BONK], and Popcat [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.
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