The market operator known as "DeepFuckingValue" returned to action on social networks and Internet forums.
Meme cryptocurrencies (or memecoins) are digital assets created as jokes, mainly inspired by internet memes. They can also be based on a famous or historical person.
This type of financial asset has stood out so far in 2024 as one of the fastest growing niches in the cryptocurrency market.
In the last week, mainly since yesterday, June 2, several memecoins have had a notable upward momentum in their prices. This comes after Keith Gill, who is known for the GameStop (GME) short squeeze of 2021, disclosed his options positions on the GME stock on the social platform, Reddit. This individual had remained silent for 3 years
GME is considered by many to be a āmeme stock.ā These types of stocks are characterized by their extreme volatility and the associated risk, since prices can be artificially inflated due to the enthusiasm generated on social networks and not necessarily due to the financial performance of the company.
In the cryptocurrency world, as a side effect, several memecoins skyrocketed. Among them, DOGā¢GOā¢TOā¢THEā¢MOON (DOG) can be highlighted, whose price shot up more than 180% if the last week is taken into account. In addition, it entered the top 100 cryptocurrencies and tokens with the highest market capitalization for the first time.
Who is Keith Gill?
Keith Gill, known on Reddit as "DeepFuckingValue" and on detailed reports and his constant promotion of the stock on Reddit forums attracted the attention of thousands of retail investors. This activity contributed significantly to a drastic rise in GameStop's stock price, leading to large losses for several hedge funds that had bet against the company.
Gill, a former financial analyst at MassMutual, was noted for his meticulous and informed approach to stock analysis, which he openly shared with the Reddit community. Despite his casual image and humorous posts, his research on GameStop was well-founded, earning him the trust of many individual investors. Its influence was such that, in a matter of weeks, GameStop shares went from a marginal investment to a global phenomenon, sparking discussions about the influence of social media on financial markets.
Following the rise of GameStop, Gill faced investigations and hearings before the SEC and the United States Congress, but defended himself by claiming that his investment in and promotion of GameStop was legal and transparent. After staying silent for three years, his recent return to Reddit has put him back in the spotlight. Also, 3 weeks ago, it had been reactivated on X (social network formerly called "Twitter").