The shares of Grindr remind of Dogecoin, which increased by over 10,000% to USD 0.68 between January and May 2021. This year has been bad for the stock of MicroStrategy, which has lost nearly 70% to USD 170.12.
The price of the shares of Grindr, an LGBTQ social media platform, skyrocketed by over 200% to around USD 40. That happened after its merger with Tiga Acquisition Group in a USD 2.1 billion deal.
The stock of Grindr rose by 46.2%, going from USD 11.63 to USD 17.00 within 24 hours. The low volume of shares in circulation (500,000) and the interest earned by the company contributed to that increase.
Another company whose stock recently accumulated significant gains is PaxMedica, a pharmaceutical company. The price of its shares rose by 36.8% within 24 hours to reach USD 2,135. Besides, the stock of YTRA, a travel company, increased by 33% to USD 2.82 overnight.
The shares of Grindr bring to mind the early rallies for meme coins like Dogecoin (DOGE), whose increases by over 10,000% were uncommon in 2021. Between January and May of that year, DOGE gained over 10,000%, going from USD 0.002 to USD 0.68.
Features of Meme Coins like Dogecoin and Shiba Inu
In 2021, speculative investors turned to cryptocurrencies amid the COVID-19 pandemic, causing the price of DOGE to rise. International lockdowns led to record trading volumes thanks to the efficient trading interfaces of some financial services companies.
Dogecoin preceded Shiba Inu (SHIB), which rose by around 11,000% in late September and October 2021. Those meme coins differ from other cryptocurrencies as they offer little value or utility beyond speculation.
Elon Musk Has Influenced the Course of the DOGE Price
Renowned influencers have expressed their sentiment, leading the price of cryptocurrencies to rise. These include Dogecoin, whose price has followed the bullish statements of Elon Musk, the new owner of Twitter. His tweets have caused the meme coin to rise by up to 20% within 24 hours.
On the contrary, negative sentiment from a celebrity like Changpeng Zhao can push prices lower. After he announced that Binance would sell its FTT holdings, the price dropped by 76% within two days.
That message scared investors, leading to significant withdrawals of the token from FTX, which is now bankrupt. After Sam Bankman-Fried filed for bankruptcy protection, many clients lost their money due to the price of FTT plummeting.
Crypto-Related Stocks Have Undergone Serious Difficulties this Year
This year has been bad for cryptocurrency-related stocks, like those belonging to the enterprise analytics platform MicroStrategy. The company, co-founded by Michael Saylor, is the largest Bitcoin holder, with over 130,000 BTC on its balance sheet. The value of its shares has dropped by nearly 70% to a low of USD 170.12.
Meanwhile, the stock of cryptocurrency exchange Coinbase has fallen by around 80% to USD 45.44. The company lost USD 540 million in the third quarter of 2022, the third time it has struggled with falling trading revenue.
By Alexander Salazar