(Bloomberg) — Trader euphoria stemming from the long-awaited return to social media of Keith Gill, the investor known for leading the 2021 memestock rally as “Roaring Kitty,” has spread around the world of cryptography.
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A cryptocurrency created in late January using GameStop’s name, logo and ticker rose more than 1,400% on Monday, according to CoinGecko data, despite having no legitimate affiliation with the company. GameStop, a video game retailer that has become one of the most recognizable memestocks, was Gill’s target when he rallied day traders on Reddit in an effort to squeeze the company’s short sellers more than two years ago years.
Gill’s account posted an image on X on Monday, showing a man leaning forward in his seat while holding a video game controller. Speculators on social media interpreted this post to mean that Gill could soon return to day trading, as his account has been silent on X since June 2021.
Read more: GameStop rises as return of ‘Roaring Kitty’ adds fuel to rally (2)
Much like their stock market counterparts, a memecoin’s success is determined by its popularity on social media. However, trading them couldn’t be more different: easy to set up in minutes, the tokens are capable of generating eye-popping hourly gains due to their small size and limited market liquidity. GME coin, for example, is only worth $0.008212.
Demand for memecoins has soared since late February as traders looked for new ways to make money, thanks to the meteoric rise in prices of larger tokens like Bitcoin and Ether. Pieces like WIF, Pepe and Bonk by Dogwifhat are among the most notable rises.
Read more: Memecoin billionaires return with bets on being the ‘first idiot’
Another token named Roaring Kitty, created in December, rose more than 700% on Monday, according to CoinGecko. GameStop shares more than doubled following Gill’s post.
A similar trajectory where traders moved from stocks to cryptocurrencies occurred in 2021 during the first memestock mania. Dogecoin rose 15,444% to a high of 73 cents in May 2021, up from $0.0047 earlier this year after Tesla boss Elon Musk repeatedly touted it on social media.
(Updates to add context and pricing starting in fourth paragraph.)
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