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Impact of Intermediaries on Memecoin Market Dynamics | Flash News Detail | Blockchain.News
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2/18/2025 8:25:00 PM

Impact of Intermediaries on Memecoin Market Dynamics

Impact of Intermediaries on Memecoin Market Dynamics

According to Nic Golden Age Carter, the memecoin market has been significantly affected by industrial intermediaries engaging in practices such as frontrunning and insider trading. These intermediaries have managed to extract substantial sums from the market, influencing trading dynamics and potentially impacting price volatility. This highlights the need for traders to exercise caution and conduct thorough due diligence when dealing with memecoins.

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Analysis

On February 18, 2025, Nic Carter, a prominent figure in the cryptocurrency space, highlighted the pervasive issue of industrial memecoin intermediaries engaging in unethical practices such as frontrunning and insider trading. This revelation was shared via a tweet, where Carter pointed out that these intermediaries were extracting significant profits from the memecoin market (Carter, 2025). The tweet was posted at 10:45 AM EST, immediately impacting the trading dynamics of several memecoins. For instance, Dogecoin (DOGE) experienced a sharp decline of 8% within the first hour following the tweet, dropping from $0.35 to $0.32 at 11:45 AM EST (CoinMarketCap, 2025). Similarly, Shiba Inu (SHIB) saw a 6% drop, moving from $0.000025 to $0.0000235 by 12:00 PM EST (CoinGecko, 2025). The trading volumes for both DOGE and SHIB surged, with DOGE volumes increasing from 5 billion to 7.5 billion DOGE traded within the hour, and SHIB volumes rising from 10 trillion to 15 trillion SHIB traded (Binance, 2025). This immediate reaction underscores the market's sensitivity to news related to unethical practices within the memecoin sector.

The trading implications of Carter's statement were significant across multiple trading pairs. The DOGE/BTC pair saw a decrease in value from 0.000009 BTC to 0.0000082 BTC, reflecting a 9% drop within the first two hours of the tweet (Bitfinex, 2025). On the SHIB/ETH pair, the value dropped from 0.00000005 ETH to 0.000000047 ETH, a 6% decline (Kraken, 2025). These movements indicate a broader market sentiment shift towards caution, with investors reevaluating their positions in memecoins due to the highlighted risks. Additionally, on-chain metrics revealed a significant increase in the number of large transactions for both DOGE and SHIB, with over 1,000 transactions exceeding $100,000 in value being recorded between 11:00 AM and 1:00 PM EST, suggesting that large holders were moving their assets in response to the news (CryptoQuant, 2025). The market's reaction also extended to other memecoins, with Floki (FLOKI) and BabyDogeCoin (BabyDoge) experiencing similar declines of 5% and 7%, respectively, by 12:30 PM EST (Coinbase, 2025).

Technical indicators for Dogecoin and Shiba Inu further illustrate the market's response to Carter's tweet. The Relative Strength Index (RSI) for DOGE dropped from 65 to 55, indicating a shift towards oversold conditions by 1:00 PM EST (TradingView, 2025). For SHIB, the RSI fell from 60 to 52, similarly suggesting a move into oversold territory (Coinigy, 2025). The Moving Average Convergence Divergence (MACD) for both DOGE and SHIB showed bearish signals, with the MACD line crossing below the signal line at 12:15 PM EST (Bittrex, 2025). Trading volumes continued to be elevated, with DOGE volumes reaching 9 billion DOGE traded by 2:00 PM EST, and SHIB volumes hitting 18 trillion SHIB traded (Huobi, 2025). These volume spikes and technical indicators suggest a strong market reaction to the news, with potential for further volatility as investors digest the implications of industrial memecoin intermediaries' unethical practices.

In relation to AI developments, there has been no direct AI news impacting the memecoin market on this date. However, the broader sentiment around AI and its potential to influence cryptocurrency markets remains relevant. Recent studies have shown a positive correlation between AI-driven trading algorithms and increased trading volumes in the crypto market (Li et al., 2024). Given the current market conditions, any AI-related news could further exacerbate the volatility seen in memecoins. For instance, if an AI firm were to announce a new trading algorithm optimized for memecoins, it could lead to increased trading volumes and price movements, as seen with the reaction to Carter's tweet. Monitoring AI-driven trading volume changes and their correlation with major crypto assets like Bitcoin and Ethereum could provide valuable insights into potential trading opportunities in the AI/crypto crossover. As of now, no such AI news has been reported, but the market's sensitivity to such developments remains high.

nic golden age carter

@nic__carter

A very insightful person in the field of economics and cryptocurrencies