GameStop Stock And Wolverine Memecoins Explode As Roaring Kitty Returns To The Spotlight
May 13 2024 - 3:27PM
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GameStop, the video game retailer that took Wall Street by storm in
2021, has once again become the talk of the town as its share price
surges 100%. Fueling this rally is the return of the
influential social media figure Keith Gill’s “Roaring Kitty.” After
a long hiatus, Roaring Kitty’s recent activity on social platforms,
including an image and video, has ignited excitement among
investors and triggered a renewed frenzy for GameStop’s meme stock
and the emerging world of memecoins. GameStop Memestock
Frenzy The meme-stock phenomenon gained widespread attention in
2021 when cash-rich investors pumped up the stock market and bet
against short-selling hedge funds. Keith Gill’s
“TheRoaringKitty” account and the subreddit “WallStreetBets” played
a pivotal role in the meme stock frenzy, driving stocks like
GameStop and AMC Entertainment to surge over 1,000% by the end of
the same year. While some early investors reaped rich
returns, hedge funds such as Gabe Plotkin’s Melvin Capital
Management suffered significant losses, leading to closures.
Related Reading: Investment Firm Makes Bitcoin Its Strategic
Reserve – Impact On Price According to Bloomberg, short sellers
betting against GameStop initially enjoyed gains in the year’s
first four months. Still, the volatile nature of meme stocks
quickly erased those paper gains. Per the report, “skeptics” were
up an estimated $400 million from January to April before slipping
into the red by Monday morning. The percentage of GameStop shares
sold short relative to those available for trading has remained at
approximately 24%, a relatively high level for a typical company
but significantly lower than the 140% levels witnessed during the
2021 mania. As GameStop’s shares gained momentum, the cost to
bet against the company increased. Recent data from S3 indicates
borrowing costs exceeding a 10% annual financing fee range. Roaring
Kitty’s Ripple Effect Roaring Kitty’s influence extended beyond
GameStop, as Wolverine-themed memecoins flooded various
blockchains. In response to a social media post featuring a video
of Marvel superhero Wolverine, more than 30 new tokens were
launched on platforms like Ethereum and Solana, as data by Dextools
shows. Notably, the newly minted “Roaring Wolverine” token on
the Ethereum blockchain experienced an astonishing 80% surge within
hours of its release. Related Reading: Is The Bitcoin Bottom In?
Analyst Reveals Key Price Levels To Watch Furthermore, the memecoin
market has witnessed a notable resurgence, with tokens such as
Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), Dogwifhat (WIF),
Floki Inu (FLOKI), and Bonk Inu (BONK) recording significant gains,
according to CoinGecko data. For instance, PEPE, the market
leader, surged by 15% in the past 24 hours, complementing its 20%
uptrend over the previous week. It reached a new high of
$0.00001077 during early Monday trading. Ultimately, GameStop’s
meme stock resurgence, fueled by the return of Roaring Kitty,
inflicted substantial losses on short sellers of the meme stock on
Monday. The impact of Roaring Kitty’s social media presence
has extended to the memecoin market, with several Wolverine-themed
tokens experiencing significant surges. Featured image from
Shutterstock, chart from TradingView.com
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