Meme coin supercycle or liquidity crisis? Expert discusses RoaringKitty’s return

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.