Meme-Manipulation: Towards Reinvigorating the Regulation of Speculative Devices 

74:5 American University Law Review;  forthcoming 2025

47 Pages Posted: 9 Jan 2025 Last revised: 30 Jan 2025

See all articles by Nizan Geslevich Packin

Nizan Geslevich Packin

City University of New York (CUNY) - Department of Law; City University of NY, Baruch College, Zicklin School of Business; University of Haifa - Faculty of Law; European Corporate Governance Institute (ECGI)

John W. Bagby

Pennsylvania State University

Date Written: September 01, 2024

Abstract

As Trump Media shares skyrocket by 30% following the assassination attempt on Donald Trump, the financial world stands as a testament to how meme stocks and social media-driven speculation can create seismic market shifts, often blurring the lines between organic market activity and coordinated, systematic manipulation. In an era where memes dictate market movements and social media influencers wield unprecedented power, the fusion of meme stocks, SPACs, and cryptocurrency speculation has transformed financial markets into volatile arenas. This Article delves into the electrifying world of speculative trading, where viral online campaigns and cutting-edge technologies like Web 3.0 and DeFi create seismic shifts in market dynamics. By exposing how these phenomena stoke the "madness of crowds," destabilize financial fundamentals, and erode trust in regulatory frameworks, this Article scrutinizes current and innovative regulatory strategies. It unveils a roadmap for empowering governmental agencies such as the SEC, CFTC, and self-regulatory organizations like FINRA to tackle this modernday financial Wild West, advocating for heightened vigilance and robust enforcement to protect market integrity and democratic trust in this thrilling new frontier of finance.

Keywords: securities, FinTech, social media, investments, investor protection, financial regulation, fraud, influencers, meme stocks, financial market manipulation, commodities market manipulation, SPAC, cryptocurrency, speculation, volatility, Chevron, Web3.0, addictive technologies MemeSPAC Volatility-Manipulation

Suggested Citation

Packin, Nizan Geslevich and Bagby, John W., Meme-Manipulation: Towards Reinvigorating the Regulation of Speculative Devices  (September 01, 2024). 74:5 American University Law Review;  forthcoming 2025, Available at SSRN: https://ssrn.com/abstract=5013524 or http://dx.doi.org/10.2139/ssrn.5013524

Nizan Geslevich Packin (Contact Author)

City University of New York (CUNY) - Department of Law ( email )

New York, NY
United States

City University of NY, Baruch College, Zicklin School of Business ( email )

One Bernard Baruch Way
New York, NY 10010
United States

University of Haifa - Faculty of Law ( email )

Mount Carmel
Haifa, 31905
Israel

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

John W. Bagby

Pennsylvania State University ( email )

P.O.Box 9
Green Ridge, MO MO 65332
United States

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