Benzinga - If you have been following meme stocks or have seen the movie Dumb Money, you are inevitably aware of the GameStop (GME) story. The stock, which had a bleak outlook and had lost nearly all of its value during the 2010s shot up in value, going from less than $1 to an ATH of over $466. The move was largely due to huge amounts of investment from retail traders on r/WallStreetBets, led by internet personality Roaring Kitty.
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The GameStop saga seemingly ended in early 2021, shortly after reaching highs. Roaring Kitty, who led the charge, stopped posting on social media, and the price of GME fell considerably. However, in May 2024, Roaring Kitty made a return to social media by posting a meme on X, which has received over 26 million views. It had been over three years since he last posted, and the return caused the price of GME to spike.
GME stock went from less than $17 on the Friday before the post, which came on a Sunday, to a high of nearly $65 on the following Tuesday. Additionally, AMC, another meme stock that is not directly associated with Roaring Kitty, also surged more than 300%, going from less than $3 to a high of nearly $12.
While it is not entirely surprising that GME and AMC saw huge amounts of trading volume and price increases after the post from Roaring Kitty, it is somewhat more unexpected that a crypto memecoin would also benefit from the posts and to a higher degree than GME and AMC themselves.
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A memecoin simply called GameStop (GME) was launched in early 2024 during the run-up of the memecoin craze. At the time, tons of new tokens were popping up each day, and creators of the tokens were looking for new memes to attract investors and increase the price. While the novelty of a GME memecoin did help propel the token to small gains initially, the hype died up within a month, and the price fell more than 96% from highs.
However, when the post from Roaring Kitty dropped, the price of the token began to increase very quickly as the news spread and more people began to discover the token. Within a few hours of the post, the price of the token increased by over 600%.
Over the next few days, the token continued to go up. Starting from less than $0.0005, the token went as high as $0.022. This marked a gain of over 4,300% in just three days, making the 300% gains of GME and AMC appear minuscule in comparison.
The token is down approximately 70% from those highs, but is still up more than 1,400% from prices before the post.
The story of GME, which was built on ideas of retail traders overcoming the larger players in finance, inevitably bled over into the crypto space, which shares many of the same ideals. However, in this case, a GME memecoin outperformed the stock itself.
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