Retail investors have always been influenced by new trends in financial markets. Following popular movements is a key part of investing. The meme investing concept can be extended even to traditional methods such as investing in the S&P 500. However, this is the behavior common among retail investors, according to Ki Young Ju, CEO of CryptoQuant.
Retail Investors Follow Trends, Says Ki Young Ju, CEO
Now due to the rise of the internet and social media ideas can become spread very fast. More people are able to invest on platforms like Robinhood and crypto exchanges. A great many are leaving traditional savings such as banks or index funds. However, most retail investors are not expert on stocks. Instead of this, they follow trends and influencers. Considering one example, Elon Musk’s influence on Tesla stocks is enough to significantly sway investments. This behavior causes the market to be volatile and institutional players can make profit on this.
Ki Young Ju says that such a thing is not expected to have the retail investors achieving the same level of expertise in investing. Unless there are strong government regulations to the contrary, this trend will continue. However, less regulation seems in the offing for this behavior in the Trump administration. It seems like their approach is that if it is inevitable, use them. It is clear when Trump launches his own cryptocurrency, which he did.
Trump’s $TRUMP Coin Reflects the Shift Toward Decentralized Finance
Trump’s $TRUMP coin is just one form of a memecoin. So long as they grab someone’s attention, they will remain. The fact that cryptocurrencies are decentralized makes it easy for meme coins to emerge. CryptoQuant CEO noted that the value of these coins is heavily correlated with the impact of their creators as well as their community.
The communities behind the memecoins determine their success. When they inspire positive action, they could be useful. But if used and altered by bad people, then they could pose a risk. This is a shift to decentralized financial systems, as we see the rise of meme driven investments. These trends are forming communities of retail investors. Under the Trump administration’s free market approach, it appears more memecoins will continue to grow. Crypto market is likely to go on for another few years with this trend.
