(Bloomberg) — Trader euphoria stemming from the long-awaited return to social media by Keith Gill, the investor known for spearheading 2021’s memestock rally under the name of “Roaring Kitty,” has spilled over into the world of crypto.
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A cryptocurrency created at the end of January utilizing 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 became one of the most recognizable memestocks, was a target of Gill’s when he rallied day traders on Reddit in an effort to squeeze the company’s short sellers more than two years ago.
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 took the post to mean Gill could soon make a return to day trading, with his account having been silent on X since June 2021.
Read More: GameStop Surges as ‘Roaring Kitty’ Return Adds Fuel to Rally (2)
Much like their stock counterparts, a memecoin’s success is determined by its popularity on social media. Trading them, however, couldn’t be more different — easy to set up in a matter of minutes, the tokens are able to generate eye-popping hourly gains due to their tiny size and limited market liquidity. The GME coin, for example, is worth just $0.008212.
Demand for memecoins has skyrocketed since late February as traders sought new ways to earn money, flush with cash from the meteoric rise in prices of larger tokens like Bitcoin and Ether. Coins like Dogwifhat’s WIF, Pepe and Bonk are among the most notable risers.
Read More: Memecoin Billionaires Return With Bets on Being ‘First Idiot In’
Another token named Roaring Kitty, created in December, rallied more than 700% on Monday, per CoinGecko. GameStop shares more than doubled on Gill’s post.
A similar trajectory where traders turned from stocks to crypto occurred in 2021 during the first memestock mania. Dogecoin rose as much as 15,444% to a peak of 73 cents in May 2021, up from $0.0047 at the start of that year after Tesla boss Elon Musk repeatedly touted it on social media.
(Updates to add context and pricing from the fourth paragraph onward.)
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