The cryptosphere was left speechless today at the prowess of crypto even deployed on Solana, GameStop. The increases recorded for GME were estimated at up to +2,200% according to some analysts. A question arises: what is behind this explosion of this cryptocurrency?
The GameStop madness: when David challenges Goliath
Has the firing of former GameStop CEO Matt Furlong finally paid off? He who was accused of having brought the company into the crypto and NFT adventure.
GameStop (GME) stock is experiencing a spectacular rise, exceeding 1800%. What are the reasons for this explosion?
GameStop (GME) Market Performance
GameStop (GME) records remarkable performance in the market, highlights CoinGap. In one day, an increase of 1699.74% and 1451.96% in one week. According to CoinMarketCap, its current market capitalization is $63.3 million.
THE GME trading volume in the last 24 hours increased significantly, reaching 8923.13%, indicating intense commercial activity. The total supply of GME tokens stands at 6,885,214,218.
The crypto had reached its all-time high of $0.01362 just three months agobut has since fallen by 46.58%.
The reason for the surge in this Solana crypto meme
Keith Gill, aka TheRoaringKitty, is at the origin of this surge. His Reddit analysis of GameStop in 2019 sparked massive buzz. His image, symbolizing a strong concentration, has prompted many crypto investors to get into trading. GameStop thus saw its course increase by almost 100% when the market openseven causing interruptions in transactions.
Mr. Gill's forecasts mobilized individual traders against large investors, leading to fluctuations and windfall profits.
L'Gill's initial investment, $53,000grew to nearly $50 million, demonstrating the strength of collective effort and online discussion groups.
Despite the questions and meetings in Congress, Mr. Gill remained convinced of the value of GameStop, drawing admiration from “meme” enthusiasts.
Mr. Gill's return to social media is reigniting interest in stock memes and cryptocurrencies.
The return of “Roaring Kitty”
GameStop shares nearly doubled in value Monday morning after the apparent return to social media of the day trader at the center of the “stock market meme” craze of 2021. Keith Gill's account, also known as “Roaring Kitt,” published a meme on Sunday on X depicting a man leaning forward on his chair, an image that GameStop posted on its own X account in February of this year. The account has been inactive since June 2021.
Mr. Gill encouraged millions of new day traders to invest in GameStop as the stock price soared in 2021which climbed more than 2,000%. Mr. Gill called attention to large hedge fund bets against the company at the time, correctly predicting that a rise in the GEM crypto price would force hedge funds to buy shares to cover their large positions discovered.
Moreover, Psychonaut4975, founder of BorpaToken, speaks on this subject,
Venture capitalists like to write long analyzes to explain different phenomena, such as the attraction to memecoins, considered excellent tools for “ tokenize » public attention. The rapid increase in the price of the $GME token is attributed to media interest in the return of Roaring Kitten and massive liquidations on GameStop. It's plausible, but it's crucial to remain cautious. Attention can quickly diminish if GameStop stock stops being talked about, especially since the liquidity/market cap ratio of the crypto token $GME is very low. Caution is therefore required. »
Psychonaut4975, founder of BorpaToken
AMC stock saw its value increase by 33% today. Conversely, GameStop's crypto rally that took place on Monday caused short sellers to lose around $1 billion.
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