GameStop Trader ‘Roaring Kitty’ Return Drives Crypto Memecoin Frenzy

(Bloomberg) — Trader exuberance stemming from the long-awaited return to social media of Keith Gill, the investor best known for spearheading the 2021 meme rally under the name “Roaring Kitty,” has spilled over into the crypto world.

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The cryptocurrency, created in late January using GameStop’s name, logo and code, surged more than 1,400% on Monday despite having no legitimate connection to the company, according to CoinGecko data. GameStop, a video game retailer that has become one of the best-known meme stocks, was Gill’s target more than two years ago when he rallied day traders to Reddit in an attempt to crack down on the company’s short sellers.

Gill’s account posted an image on X on Monday showing a man leaning forward in his chair while holding a video game controller. Speculators on social media took the post to mean that Gill could soon return to day trading with his account, which has remained silent about X since June 2021.

Read More: GameStop Soars as Return of ‘Roaring Kitty’ Fuels Rally (2)

Just like its stock counterparts, memecoin’s success is determined by its popularity on social media. However, their trading could not be more different; Easy to set up in minutes, the tokens can generate eye-popping hourly profits due to their small size and limited market liquidity. For example, GME coin is only worth $0.008212.

Demand for memecoins has skyrocketed since late February due to the rapid rise in prices of larger tokens such as Bitcoin and Ether, as traders look for new ways to make money. Cryptocurrencies such as Dogwifhat’s WIF, Pepe and Bonk are among the most notable rises.

Read More: Memecoin Billionaires Return with Bets on Being ‘The First Fool’

Another token called Roaring Kitty, created in December, surged more than 700% on Monday, according to CoinGecko. Shares of GameStop more than doubled on Gill’s post.

A similar trend, with investors shifting from stocks to crypto, occurred during the first memstock craze in 2021. Dogecoin rose as much as 15.444% to a peak of 73 cents in May 2021, from $0.0047 at the beginning of that year after Tesla boss Elon Musk touted it multiple times on social media.

(Updates to add context and pricing from fourth paragraph.)

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