What’s the Story With the Meme Stocks and Meme Coins Craze?
I recently watched a podcast about meme coins. I had heard of mem stocks but not meme coins. This got me thinking about the whole meme craze, which goes against everything I know about trading.
What is a meme stock?
A meme stock is a company’s stock that becomes popular with retail investors through social media, often due to internet memes shared on platforms like Reddit. These stocks are known for being volatile and speculative, and their prices can be disconnected from the company’s business fundamentals…. AI Overview
What is a meme coin?
A meme coin is a type of cryptocurrency that is inspired by internet memes, pop culture references, or viral jokes. They are often created as a lighthearted joke and are usually named after the internet meme or pop culture reference that inspired them… AI Overview
I can stop here as all you need to do is read the section on meme coins and dismiss it out of hand. In the podcast I heard it said that you can make a lot of money in meme coins so someone is taking it seriously. It was add that this only works if you time it right and get out before it turns as meme coins are destined to go to zero as they are worthless.
What is the meme stocks/coin craze?
I am not privy to the inner workings of the meme world as I avoid any market that lacks liquidity. This is the definition of a meme stock or more so a coin. Anyone can get into a position but you must be able to exit at a market price or risk the consequences. This is even more true in a leveraged trade.
From what I gather meme stocks/coins are driven by social media hype that creates a get rich quick herd affect. Why else would stocks in dying or at least no growth industries like AMC and GameStop skyrocket before falling back to earth. If there was liquidity, social media hype would have no or little impact.
So, for those who like to play this game, remember this term Caveat Emptor, Let the Buyer Beware.
Trading is not gambling and gambling is not trading. Playing meme stocks or especially meme coins meet neither definition.
If you are interested in gambling and/or trading or here is a broker who offers both.
What’s the Story With the Meme Stocks and Meme Coins Craze?
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