Keith Gill, the investor known in the internet and meme coin world with his “Roaring Kitty” and Reddit username “DeepFuckingValue”, mobilized the markets with his large investment in GameStop and became the focus of discussions again. Gill’s latest move makes one question whether the meme stock craze will return and also raises ethical and legal questions.
New move from meme coin legend Keith Gill: He may be banned from Morgan Stanley’s platform
Gill, who trades on the E-Trade platform owned by Morgan Stanley, surprised the investment world with the screenshot he shared on Reddit. In this footage, it was revealed that Gill held 5 million GameStop shares and 120,000 options with a strike price of $20. It is stated that approximately $5.68 was paid for each of the options. Following this post, GameStop stock attracted attention by rising around 30% at the beginning of Monday.
Morgan Stanley’s financial crimes and compliance unit and outside attorneys are closely monitoring Gill’s account activity. Although the brokerage firm has not yet made a decision, it is considering closing Gill’s account. E-Trade did not make any statement, stating that it does not share customer information as per company policy.
Gill played a big role in GameStop events
Gill’s name came to the fore once again with the rise of meme stocks, which have become popular recently. His role in the GameStop events of 2021 led to Congressional investigations and a class-action lawsuit. At the time, Gill faced accusations that he portrayed himself as a novice investor, despite being a licensed financial professional. The fact that he was assigned by MassMutual in the field of marketing and financial education made the situation even more complicated.
Gill’s post on Reddit, after a three-year absence, reignited interest in meme stocks and attracted the attention of regulators and financial institutions. His recent investments have been questioned ethically and raised suspicions of market manipulation. The increase in GameStop stock after Gill’s post brought to mind the craziness in 2021. A similar situation occurred at that time, when stocks with weak fundamentals were inflated through social media. Gill’s investment attracted strong interest from retail investors, and the share price rose 30% to close the day at $27.58.
Loaded GameStop options open
According to the information in the screenshot, Gill’s portfolio includes 5 million GameStop shares worth $115.7 million and options worth $657 million. This means a total investment of 772.7 million dollars. The fact that Gill’s options expire on June 21 creates excitement in the markets. It is a matter of curiosity whether the options will be exercised and how this will affect the GameStop share price.
In addition to all these developments, it is also among the news that Morgan Stanley is seriously considering banning Gill from the platform. Authorities suspect Gill’s investments may be market manipulation. It is being followed with curiosity what move Gill will make in the coming period and how the authorities will react to this situation. While this incident raises the question of whether the meme stock craze is over, it also brings into question issues such as the impact of social media on markets and the need for regulation.
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