Retail investors versus Wall Street! GameStop short squeeze promoter Roaring Kitty suddenly returns
Do you still remember the "GameStop short squeeze incident" in which American retail investors fought against Wall Street? In January 2021, retail investors on the well-known forum Reddit launched a movement to buy the heavily shorted shares of GameStop, causing some hedge funds that had shorted the company's stock to be "short squeezed." This craze has also spread to the cryptocurrency circle, once pushing Dogecoin ($DOGE) up.
An American financial analyst whose online name is Roaring Kitty and whose real name is Keith Gill is one of the leading figures in this incident. This incident was later picked up by Netflix, which launched the documentary "Retail Investors vs. Wall Street: The GameStop Legend." But after June 2021, Gere’s account stopped publishing new posts and became dormant.
However, Gere, who had not posted in 3 years, suddenly returned yesterday (13th) and posted a meme of a man leaning forward in a chair playing video games on X (formerly Twitter), which detonated the game. The trend of GameStop stock and various related meme coins.
One picture makes stocks and various meme coins skyrocket
According to "Markets Insider", GameStop shares soared 119% after the market opened on Monday U.S. time and triggered multiple circuit breakers during the trading session, while AMC Cinemas shares rose 18%.
Meme coins, which have no circuit breaker mechanism and are traded 24 hours a day, have even seen an astonishing increase. According to statistics, $ROAR, $GIL, and $KITTY on the Solana chain have achieved increases of 4,000%, 1,856%, and dozens of times respectively, and these meme coins were all issued quickly within 24 hours after Kil’s announcement.
The trading volume of another token called $GME, which has no connection to GameStop, also rose 1,247% on Monday, with total trading volume exceeding $70 million.
Popular meme coins have no practical value, investors must understand the risks
In the currency circle, everyone can issue cryptocurrency in a short period of time, and when hot events come, popular currencies will soon appear on the chain. The issuers of these meme coins are usually anonymous and have no practical value, and many of them end up being reset to zero. Only a few meme coins can squeeze into the forefront of the market, such as Dogecoin, Shiba Inu Coin ($SHIB), Pepe Frog Coin ($PEPE), $FLOKI, and Doge Hat Coin ($WIF).
Although the meme currency track currency is extremely speculative and risky, industry insiders have not underestimated its influence. Maartje Bus, vice president of research at data analyst Messari, pointed out that cryptocurrencies are often criticized for not having practicality for ordinary people to enter. But in fact, meme coins have been very successful in bringing people to the on-chain world.
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