GME, a parody memecoin of GameStop on the Solana blockchain, has achieved a market capitalization of over $100 million amidst a trading frenzy. As of May 14, the GME memecoin has experienced a 2,291% return in the past week and is currently trading at $0.01449. This surge in value is largely influenced by investor interest in GameStop Corp’s shares, which have risen by 228% in the past five trading days on the New York Stock Exchange.
Furthermore, the listing of the GME memecoin on centralized exchanges like Bitget and BingX has contributed to increased buying activity. The unexpected return of Keith Gill, the trader who initiated the GameStop short squeeze in 2021 through Reddit, has sparked another short squeeze of GameStop shares among enthusiastic investors. Following Gill’s return, GameStop’s shares surged by up to 111% in price within 24 hours.
Not only are average traders benefiting from this market excitement, but Ryan Cohen, GameStop’s CEO, chairman, and largest individual shareholder with a 12% stake, reportedly holds $1 billion in unrealized capital gains resulting from the ongoing short squeeze.
The crypto industry has been swept up in memecoin hysteria this year. On May 13, Pepe the Frog memecoin Pepe (PEPE), minted on the Ethereum blockchain, experienced a 34% rally in a single day, reaching a new record high of $0.00001119 on Binance.
On March 22, the price of Solana memecoin Dogwifhat (WIF) reached a record high after its successful $700,000 Vegas Sphere fundraiser. Immediately after the campaign, WIF’s price spiked by 25%, briefly reaching $3 and a total market capitalization of $3 billion.
On April 3, a trader reportedly turned $13,000 into $2 million within a few hours by investing in Bitget Wallet’s Donotfomoew (MOEW) memecoin on the Base blockchain shortly after its launch. They sold their positions after MOEW gained traction.
However, experts have issued warnings about the apparent recklessness of investing in memecoins. On April 24, prominent decentralized finance investigator ZachXBT revealed that 12 Solana memecoins raised a total of $26.7 million from investors before abruptly abandoning their projects. The costliest “abandoned” presale project was a memecoin called “I like this coin” with the ticker LIKE.
In summary, memecoins like GME have captivated the crypto industry, with significant gains and trading frenzies driven by investor interest in GameStop and other popular meme-related tokens. Despite the excitement, cautionary voices have emphasized the risks associated with these speculative investments.