After a nearly two-year hiatus, the trader known as RoaringKitty returned to social media on May 13. Keith Gill, the real identity of RoaringKitty, is largely credited for spiking the GameStop stock (GME) surge in late 2020, and his return was enough to make GME price jump nearly 147% in 24 hours.
Moreover, following his first publication, Gill started sharing cryptic videos that attracted the attention of known crypto investors, such as Ansem. This formed a landscape that is seen by the trader who identifies himself as EllioTrades as a preparation for a ‘meme coin super cycle.’
However, some investors from the crypto community manifested their worries about movements in traditional finance being capable of draining liquidity from crypto. Eneko Knörr, CEO and co-founder of Stabolut, shared with Crypto Briefing that the crypto market’s liquidity is unlikely to be substantially affected.
“On the contrary, it feels like the meme stocks comeback has brought back attention to meme coins, with PEPE trading at a striking all-time high, for instance. This parallel surge in both meme stocks and meme coins indicates that the enthusiasm generated by RoaringKitty’s return is not limited to a single market, but rather is a broader phenomenon that transcends traditional boundaries,” explained Knörr.
Furthermore, Stabolut’s co-founder believes that the crypto market is well-equipped to absorb and respond to such shifts in investor sentiment, another sign that the liquidity will remain robust in crypto. “In fact, the overlap between the meme stock and crypto communities may even lead to a cross-pollination of ideas and investment strategies, further fueling the growth of both markets.”
A possible meme coin supercycle
Knörr highlights the impact influencers and key opinion leaders (KOL) have on the crypto industry, mentioning Max Keiser and Kris Marszalek, CEO of Crypto.com, as examples. Their voices, he adds, can shape market sentiment.
Therefore, RoaringKitty’s return combined with interactions with notable crypto investors has the potential to trigger a meme coin supercycle.
“The evolution of KOLs has led to a budding economy where influencers not only promote projects but also invest in them, often under favorable terms of course. This shift has raised concerns about transparency and potential conflicts of interest, as many KOLs fail to disclose their financial ties to the projects they promote. Despite these concerns, the influence of KOLs on the crypto market is undeniable, with research suggesting that they can significantly impact token prices and market trends.”
The impact mentioned by Stabolut’s co-founder is even more significant when it comes to meme coins, which often thrive on the enthusiasm and participation of influencers’ followers, and the endorsement of a prominent influencer can be a significant catalyst for their growth.
Read the full article here
