Did the Memecoin Trend Reflect on Real Stocks? Small-Cap Stock Surges 350%

Farmmi stock experienced a surge of up to 350% during the same period as activity surrounding the unofficial FAMI token, later pulling back as trading volume reached approximately 90 times the daily average.

Shares of Nasdaq-listed small-cap Farmmi briefly climbed from $0.12 to $0.50 on Wednesday. The price later retreated to around $0.18. Over 720 million shares changed hands during the day.

The move coincided with the pairing of a memecoin named JINQIAN, trading on Robinhood Chain, with a token using Farmmi’s FAMI ticker. According to DexScreener data cited by The Block, JINQIAN’s implied value reached approximately $60 million at its peak. This figure was about 10 times Farmmi’s market capitalization before the rally.

FAMI token is not an official stock product

The FAMI token is not among Robinhood’s official stock tokens. This token, which appears to have been issued independently, lacks an official structure representing Farmmi shares or automatically linking token purchases to real stock acquisitions.

As a result, it remains unconfirmed whether the speculation surrounding JINQIAN and FAMI is directly linked to the activity seen in Farmmi stock. One possible explanation is that investors noticed the hype surrounding the token and proceeded to buy the actual stock via a brokerage.

Prior to the rally, Farmmi had a market cap of a few million dollars and only 15 employees.