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GameStop Trader’s ‘Roaring Kitty’ Return Sparks Memecoin Cryptocurrency Frenzy
(Bloomberg) — Trader euphoria stemming from the long-awaited return to social media of Keith Gill, the investor best known for leading the 2021 memestock rally under the name “Roaring Kitty,” has spilled over into the world of cryptocurrencies.
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According to data from CoinGecko, a cryptocurrency created in late January using GameStop’s name, logo and ticker surged more than 1,400% on Monday, despite having no legitimate affiliation with the company. GameStop, a video game retailer that has become one of the most recognizable memestocks, was a target of Gill’s when he rallied day traders on Reddit in an attempt to squeeze the company’s short sellers more than two years ago.
Gill’s account posted an image to X on Monday, showing a man leaning forward in his seat while holding a video game controller. Speculators on social media interpreted the post to mean that Gill may soon return to day trading, as his account has remained silent on X since June 2021.
Read more: GameStop Rises as ‘Roaring Kitty’ Return Adds Fuel to Rally (2)
Just like their stock counterparts, a memecoin’s success is determined by its popularity on social media. Their trading, however, couldn’t be more different: easy to set up in minutes, the tokens are capable of generating eye-popping hourly earnings thanks to their small size and limited market liquidity. The GME coin, for example, is worth just $0.008212.
Demand for memecoins has skyrocketed since late February as traders sought new ways to make money, flooding the meteoric rise in prices of larger tokens like Bitcoin and Ether with cash. Coins like WIF, Pepe and Dogwifhat Bonk are among the most notable rises.
Read more: Memecoin billionaires return with bets on being the ‘first idiot’
Another token called Roaring Kitty, created in December, rallied more than 700% on Monday, according to CoinGecko. GameStop more than doubles down on Gill’s post.
A similar trajectory where traders moved from stocks to cryptocurrencies occurred in 2021 during the first memestock craze. Dogecoin rose 15.444% to a peak of 73 cents in May 2021, up from $0.0047 earlier that year after Tesla boss Elon Musk repeatedly touted it on social media.
(Updates to add context and pricing from fourth paragraph onward.)
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