GameStop, the video game retailer that took Wall Street by storm in 2021, is once again the talk of the town with its stock price soaring 100%.
Fueling this rise is the return of social media influencer Keith “Roaring Kitty” Gill. After a long pause, Roaring Kitty Recent activity On social media platforms, including photo and video, it ignited excitement among investors and sparked a renewed craze for GameStop's meme stocks and the emerging world of meme currencies.
GameStop Memestock Frenzy
the Stock meme The phenomenon gained widespread attention in 2021 when wealthy investors poured money into the stock market and bet against short-selling hedge funds.
Keith Gill's “TheRoaringKitty” and “WallStreetBets” Reddit accounts played a pivotal role in the meme stock craze, sending stocks like GameStop and AMC Entertainment soaring more than 1,000% by the end of the same year.
While some early investors reaped significant returns, hedge funds like Gabe Plotkin's Melvin Capital Management suffered significant losses, leading to closures.
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According to According to Bloomberg, short sellers betting against GameStop initially enjoyed gains in the first four months of the year. However, the volatile nature of meme stocks quickly erased those paper gains. According to the report, “skeptics” rose by an estimated $400 million from January to April before falling back into the red by Monday morning.
The percentage of GameStop shares sold short compared to those available for trading remained at around 24%, a relatively high level for a typical company but well below the 140% levels seen during the year. Mania 2021.
As GameStop shares gain momentum, the cost of betting against the company increases. Recent data from S3 indicate that borrowing costs exceed 10% of annual financing Fee range.
Kitty roar ripple effect
Roaring Kitty's influence has extended beyond GameStop, as Wolverine-themed memes have flooded many blockchains. In response to A Social media sharing Featuring a video of the Marvel superhero Wolverine, more than 30 new tokens have been launched on platforms like Ethereum and Solana, in addition to… Data By Dextools Offers.
Notably, the newly minted “Roaring Wolverine” token on the Ethereum blockchain saw a staggering 80% spike within hours of its release.
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Moreover, the memecoin market has seen a notable recovery, with tokens such as Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), Dogwifhat (WIF), Floki Inu (FLOKI), and Bonk Inu (BONK) registering significant significance. . Gains, according to CoinGecko Data.
For example, PEPE, the market leader, is up 15% over the past 24 hours, continuing its 20% uptrend over the previous week. It reached a new high of $0.00001077 during early trading on Monday.
Ultimately, GameStop's meme stock rebound, fueled by the return of Roaring Kitty, inflicted significant losses on short sellers of meme stocks on Monday.
The influence of Roaring Kitty's social media presence has extended to the memcoin market, where several Wolverine-themed tokens have seen significant spikes.
Featured image from Shutterstock, chart from TradingView.com