3 months ago
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Amid the GameStop stock drama, a meme coin dubbed $GME has been making waves in the cryptocurrency market.
Keith Gill, often referred to as Roaring Kitty, has recently seen his big gains from GameStop Corp (NYSE: GME) stock evaporate amid a major price plunge. Following a sensational surge in the GME stock price last week, the subsequent correction has been brutal. The price per share of GME has declined by more than 50% in the course of the last two trading sessions, bringing the value of the stock below $25 and cutting Gill’s profits by $350 million.
Just last Thursday, Gill’s investment in GME gained a dramatic $382 million in profit. However, by the end of Friday, his position had suffered a loss of $235 million. This bearish momentum continued through Monday when GME stock sank by 12% after it had shed 40% in the last trading session before the weekend. This massive price drop has reduced Roaring Kitty’s recent gains to almost negligible, resulting in a net loss of around $351 million within a week.
Michael Pachter, a GameStop analyst at Wedbush, expressed his doubts about the company’s prospects for a major recovery. According to the analyst, GameStop’s lack of a coherent strategy and previous failed attempts to revitalize its business operations cast a shadow over its future. He noted that any temporary uplift in GME’s stock price due to Roaring Kitty’s influence would likely be short-lived.
“We suspect that [Friday’s] live stream from influencer Keith Gill will keep shares elevated long enough for the company to complete its [at-the-market share offering], but with no clear strategy, we suspect the share price will once again begin to descend and approach our new price target,” Pachter stated in an interview with CNBC.
GameStop’s struggle to define and execute a successful turnaround strategy has left investors wary about continued downward pressure on its share price. Despite this, many of Gill’s supporters remain hopeful for a potential upswing, expressing optimism on Reddit and encouraging fellow investors to hold onto their shares rather than sell them.
$GME Token Takes a Hit
Amid the GameStop stock drama, a meme coin dubbed $GME has been making waves in the cryptocurrency market. Despite having no direct association with the GameStop corporation, this token has surged by nearly 5000% since early June.
However, as enthusiasm for GameStop diminishes, the $GME meme coin has also taken a substantial hit, dropping by 16% in the last 24 hours. Currently trading at $0.0166, with a market cap of $114 million, $GME has seen a significant decline in its daily trading volume, which has plummeted by 43% to $116 million over the past day. This is in line with other meme coins, where popular coins such as Notcoin have tanked by more than 35% within the last one week.
