Meme Coin Investors Earn IDR 75 Trillion at GameStop
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Meme Coin Investors Make Profits of IDR 75 Trillion Amid GameStop Hysteria

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Meme Coin Investors Make Profits of IDR 75 Trillion Amid GameStop Hysteria

GameStop

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Another surprising rally hit GameStop Corp (GME) shares on Wall Street last Monday (13/5). The share price of the video game retail giant, which was involved in the historic short squeeze phenomenon in 2021, soared 75% to reach $30.45. In fact, unexpectedly, GME stock prices continued to soar 21% higher after the closing bell rang.

 

This price increase immediately evoked memories among market players about the GameStop phenomenon two years ago. An iconic event occurred when the mass coordination of retail traders led by Keith Gill aka “Roaring Kitty” succeeded in turning things around and overturning the short positions of large funds that underestimated GameStop’s prospects. This time, allegations point to Gill again being the trigger for this legendary share price follow-up rally.

 

But this time, the impact is not limited to the stock exchange but also spreads to the crypto realm—the meme coin sector. Following an explosion in the price of its parent stock, the GameStop-type meme coin itself exploded by 2,200% in the last 24 hours, marking the first invasion of a new wave of market players into the realm of high-risk crypto assets.

 

This euphoria quickly spread throughout the meme coin sector. Data from blockchain information provider Santiment notes that daily trading volume rose by 34% for the top 50 meme coins, such as PEPE, MAGA, MOG, PONKE, PEPE2.0, SPX, and ANALOS which suddenly became the new favorites.

 

This boom in meme coins, which tend to be underestimated, immediately brought blessings to the pockets of their owners. In one day, this sector managed to add $5 billion, or the equivalent of IDR 75 trillion, to investors’ wealth, showing the potential for huge profits from this kind of high-risk asset.

 

On the other hand, the GameStop rally took its toll again, with losses of nearly $1 billion for GME stock sellers, based on data from S3 Partners. This event once again underscores the power of crowd-sourced trading and its potential impact on shaking up the dynamics of traditional financial markets.

 

“Days like today remind us of the power of retail trading coordination and its potential impact on traditional market dynamics,” said Ihor Dusaniwsky, Managing Director of Predictive Analytics at S3 Partners.

 

Although this time the GameStop rally seems sudden and temporary again, this incident is a reminder that the power of mass coordination among individual market players in the digital era cannot be underestimated.

 

Even though most financial analysts still question the sustainability of this kind of speculative phenomenon, no one can deny that major market players must now always be alert to the potential for unexpected shocks that could erupt at any time from the increasingly massive wave of collective action by retail traders on various online platforms. 

 

This incident once again highlights the importance of strict monitoring of the investor community’s movements in cyberspace. What a solid coordination force, even without a centralized structure, is able to storm and jolt the capital market in a matter of days.

 

Given the scalability and ever-expanding reach of the Internet, phenomena like the GameStop rally have the potential to become more frequent and disruptive in the future. Therefore, policymakers and regulators are challenged to formulate mitigation measures to reduce unproductive fluctuations while maintaining financial system security.

 

That’s the latest information about today’s crypto news. Make sure to activate notifications so you don’t miss out on the latest information that we present at INDODAX Academy.
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*Disclaimer


This content aims to enrich the reader’s information. Always do your own research and consider carefully before investing. Use funds that are not too vital for your needs before getting involved in investing. All bitcoin buying and selling activities and other crypto asset investments are the responsibility of the reader.

 

 Authors: RB & AL

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