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Meme coin supercycle or liquidity crisis? Expert Discusses RoaringKitty’s Return
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After a nearly two-year hiatus, the trader known as RoaringKitty returned to social media on May 13th. Keith Gill, the real identity of RoaringKitty, is widely credited with fueling GameStop’s (GME) stock rally in late 2020, and his return was enough to make GME’s price jump nearly 147% in 24 hours.
Furthermore, after his first post, Gill began sharing cryptic videos that attracted the attention of well-known crypto investors such as Ansem. This formed a landscape that it’s seen by the trader who identifies himself as EllioTrades in preparation for a ‘meme coin super cycle’.
However, some investors in the crypto community have voiced their concerns about moves in traditional finance being able to drain liquidity from crypto. Eneko Knörr, CEO and co-founder of Stabolut, shared with Crypto Briefing that crypto market liquidity is unlikely to be substantially affected.
“On the contrary, it appears that the return of meme stocks has brought attention back to meme coins, with PEPE trading at a record high, for example. This parallel rise in both meme stocks and meme coins indicates that the enthusiasm generated by RoaringKitty’s return is not limited to a single market, but is a broader phenomenon that transcends traditional borders,” explained Knörr.
Furthermore, the Stabolut co-founder believes that the cryptocurrency market is well equipped to absorb and respond to these changes in investor sentiment, another sign that liquidity will remain robust in cryptocurrencies. “In fact, the overlap between the meme stock and crypto communities could even lead to a cross-pollination of investment ideas and strategies, further fueling the growth of both markets.”
A possible meme coin supercycle
Knörr highlights the impact that influencers and key opinion leaders (KOL) have on the crypto industry, mentioning Max Keizer 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 an emerging economy where influencers not only promote projects but also invest in them, often under favorable conditions, of course. This change has raised concerns about transparency and potential conflicts of interest, as many KOLs do not 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 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 an endorsement from a prominent influencer can be a significant catalyst for their growth.
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