Keith Gill, the internet star known as “Roaring Kitty,” is back. With its return, speculation is also increasing about a potential repeat of the 2021 GameStop short squeeze phenomenon and the rise of the meme coin craze. While some crypto enthusiasts are very excited, analysts remain cautious, highlighting fundamental differences in the current market environment.
Is there a return to 2021?
In early 2021, individual investor Gill became the central figure in the GameStop saga. Through his social media presence, he encouraged a group of retail investors to buy shares of GameStop (GME), causing its price to rise over 1,000% in a short time. This increase was caused by a short squeeze in which hedge funds that had bet heavily against GameStop were forced to buy back shares at high prices to cover their losses. The event became a symbol of the power of individual investors and sent shockwaves through the financial world.
The GameStop frenzy wasn’t limited to traditional stocks. It also led to a surge in memes such as Dogecoin (DOGE) and Shiba Inu (SHIB). Many believe that retail investors, emboldened by GameStop’s success, turned their attention to these highly speculative cryptocurrencies, contributing to their meteoric rise. After an almost three-year hiatus, Gill resurfaced on social media in May 2024. This seemingly innocuous event triggered a significant jump in GameStop’s share price, along with modest gains in established meme coins such as DOGE and SHIB. This reaction has raised hopes of a renewed retail investor movement echoing the events of 2021.
Some meme coin projects took flight
cryptokoin.com As we reported, Gill attracted the attention of users yesterday by posting a new tweet. Then, he continued to share various gifs and videos. However, GME coin rose 700 percent after Gill first shared a “meme”. The “Roaring Kitty” effect wasn’t limited to GameStop. Meme coins with cat-themed branding such as “Roaring Kitty” (ROAR) and “Kitty Coin Solana” (KITTY) have witnessed astronomical gains simply due to their association with Gill and the word “kitty”. ROAR increased by 545 percent. KITTY gained 126 percent in value. Other “cat” themed coins that are on the rise are as follows:
Warning from analysts
But market analysts like eToro’s Josh Gilbert warn against blind optimism. He argues that the current economic environment is very different from 2021. Rising interest rates, global inflation and the cost of living crisis are all important factors that could dampen individual investor enthusiasm compared to the incentive-supported environment of the past. Additionally, shorts in GameStop are not as high as they were in 2021, indicating the potential for smaller upside price movement.
Although Gill’s return is causing excitement, it is important to maintain a balanced perspective. Market dynamics are very different from 2021, and the sustainability of the memecoin craze fueled by a single social media post continues to be questioned. Only time will tell whether history repeats itself or whether this is a short-term echo of the past.
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