Roaring Kitty’s New Return: Meme Stocks and Crypto Coins Explode
In the financial world, few stories are as captivating as that of Keith Gill, also known as Roaring Kitty. This former financial analyst turned stock influencer sparked the 2021 GameStop (GME) short squeeze, shaking Wall Street and capturing global attention. After a significant hiatus, Gill has recently returned to social media, reigniting interest in both traditional and crypto markets.
Known under the alias “DeepFuckingValue,” Gill became a hero on platforms like Reddit and YouTube. He was a vocal advocate for GameStop, a company largely considered faltering at the time. Many institutional investors and hedge funds had shorted GME, expecting its value to decline.
However, the narrative took a sharp turn when GME shares, initially valued at around $5.16, surged to exceed $490 in 2021. This price inflation was primarily driven by users from the r/WallStreetBets subreddit. Gill’s posts inspired a collective action to trigger a short squeeze, where rising stock prices compel short sellers to purchase shares at increasing rates, escalating the stock price further.
From an initial investment of $53,000, Gill’s stakes in GME soared to an impressive $48 million at the peak of the market upheaval. His significant role in this market anomaly brought him before Congress for testimony and was later depicted in the film “Dumb Money.”
Upon his return to the public eye with a post on X (formerly Twitter) in mid-2021, Gill once again stirred the investment world. The post featured an image of a man intently using a video game controller, sparking discussions in stock investment circles and the crypto domain.
The resurgence of interest following Gill’s tweet extended to meme coins, a sector known for its high volatility and speculative nature. For instance, the Roaring Kitty (KITTY) meme coin saw remarkable trading activity, with one trader turning a $3,000 investment into $94,000 overnight due to a sudden price surge.
Now, investors and spectators alike are pondering the future of meme coins in this revived market environment. Several of Gill’s videos hint at a potential preference for cat-themed meme coins, possibly heralding the next big rally in this quirky asset class. On-chain analysis firm Lookonchain indicates that smart investors are already positioning themselves in cat-related meme coins like POPCAT, MANEKI, and KITTY.
“Maybe the next Dogecoin (DOGE) will be among the cat-themed meme coins,” Lookonchain suggested.
GameStop’s shares have rallied more than 70%, reminiscent of a few years ago. This time, it was due to the return of trader and investor Keith Gill, better known as Roaring Kitty. Gill’s posts on X sent GameStop and AMC Entertainment’s stocks soaring, increasing 77.5% and 77.9%, respectively.
This dramatic market reaction marks the first time Gill has been publicly active since his last appearance roughly three years ago. The mysterious post quickly attracted over 12 million views, further fueling speculation and excitement among traders. GameStop saw its shares peak at a staggering 110% increase before stabilising. The trading frenzy was so intense that it triggered multiple daily trading halts. Similarly, AMC shares also saw a significant uptick, with prices doubling at one point during the trading session.
PEPE has skyrocketed, with its price surpassing the $0.000010 mark for the first time since March 15. At the time of reporting, PEPE is trading at $0.00001086, marking a 22% increase in the past 24 hours, according to data from CoinGecko. The coin’s trading volume has also surged by 290.5% to $2.14 billion, with its market capitalisation rising to $4.35 billion, making it the 28th largest cryptocurrency by market value.
The return of Roaring Kitty caused a meme coin rally, with Solana-based GameStop memecoin (GME) surging over 350% and AMC token witnessing an over 900% increase. Established meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) also experienced modest gains, with them rallying by 7% and 7.5%, respectively, according to CoinGecko data.
The Impact of Social Media on Financial Markets
The return of Keith Gill, a man closely linked to GameStop’s stock rally in 2021, has unleashed a massive flood of Solana-based meme coins through the pump.fun protocol. GME Stonks, GameOver, and KiethGillWifHat are just a few examples of tokens launched through pump.fun in the last 24 hours after Gill’s meme on Twitter.
Andrew Tate’s Bold Move
I lost a lot of money attacking The Matrix during Gamestop.
Former professional kickboxer turned social media provocateur Andrew Tateclaims he has cashed out $500,000 in Bitcoin to invest in GameStop and meme coins to spite hedge funds. “There’s a hedge fund manager who, when he wakes up tomorrow morning—if GameStop opens at the current price—he’s gonna lose $13 billion dollars,” Tate said in a Twitter video. “His entire hedge fund!”
Tate’s Reddit-inspired hypothesis mirrors the 2021 theory surrounding the same stock. With the return of Roaring Kitty, it seems meme stock mania is in full swing again. Tate declared, “I’m taking Wall Street down, watch me. Fuck ‘em. Fuck ‘em all.”
The Future of Meme Coins and Stocks
Only 1 month has passed and 12 of the Solana presale meme coins have been completely abandoned after raising >180,650 SOL ($26.7M).
The apparent recklessness of investors gambling on meme coins has attracted warnings from experts. Prominent DeFi sleuth ZachXBT highlighted that 12 Solana memecoins allegedly raised $26.7 million from investors before abruptly abandoning the projects.
eToroMarket AnalystJosh Gilbert remains sceptical about the sustainability of the current rally. “I think it will certainly ignite some short-term moves from these assets, but it’s hard to see any longevity,” he said. Gilbert noted that the outstanding shorts on assets like GameStop were much smaller than 2021, meaning that the “size of the move to the upside” would likely be smaller.
Conclusion
The return of Roaring Kitty has undeniably reignited a fervour in both stock and crypto markets, with meme coins experiencing significant surges. While the impact of social media on financial markets is evident, the sustainability of these speculative rallies remains uncertain. As the market adapts, the influence of internet personalities like Roaring Kitty highlights the growing intersection between social media and financial markets, potentially reshaping investment strategies and market dynamics in the years to come.
