The 2021 Meme Coin Craze Is Back With The Legendary Trader: He Flew That 8! - Kriptokoin.com

Internet star Keith Gill, known as "Roaring Kitty," is back. With its return, speculation is also growing that the 2021 GameStop short squeeze phenomenon could potentially be repeated and the rise of the meme coin craze. While some crypto enthusiasts are very excited, analysts are cautious, highlighting the fundamental differences in the current market environment.

Back to 2021?

In early 2021, retail investor Gill became the central figure in the GameStop saga. Through his social media presence, he encouraged a group of retail investors to buy GameStop shares (GME), allowing its price to rise to over 1,000% in a short period of time. This increase was due to short squeeze, in which hedge funds that had been betting heavily against GameStop were forced to buy back shares at high prices to cover their losses. The event has become a symbol of the power of retail investors and has sent shockwaves through the financial world.

pic.twitter.com/lKvBItR8lE

— Roaring Kitty (@TheRoaringKitty) June 19, 2021

The GameStop craze wasn't limited to traditional stocks. It has also led to an increase in memec oins such as Dogecoin (DOGE) and Shiba Inu (SHIB). Many believe that retail investors, emboldened by GameStop's success, have turned their attention to these highly speculative cryptocurrencies, contributing to their rapid rise. After an almost three-year hiatus, Gill resurfaced on social media in May 2024. This seemingly innocuous event triggered modest gains in established meme coin such as DOGE and SHIB, as well as a significant jump in GameStop's share price. This reaction has raised hopes for a renewed movement of retail investors repeating the events of 2021.

Some meme coin projects have taken flight

As Kriptokoin.com reported, Gill caught the attention of users with a new tweet yesterday. Then, he continued to post various gifs and videos. However, after Gill first shared a meme, the GME coin rose by 700%. The "Roaring Kitty" effect wasn't limited to GameStop. Meme coin with cat-themed branding such as "Roaring Kitty" (ROAR) and "Kitty Coin Solana" (KITTY) have witnessed astronomical gains due to their association only with Gill and the word "kitty." ROAR rose by 545 percent. KITTY gained 126 percent. Other "cat"-themed coins that are on the rise are as follows:

However, market analysts such as 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 important factors that may dampen retail investors' enthusiasm when compared to the stimulus-fueled environment of the past. Additionally, short positions on GameStop are not as high as they were in 2021, indicating that there is potential for a smaller upward price movement.

While Gill's return has created excitement, it's important to maintain a balanced perspective. Market dynamics are very different from 2021, and the sustainability of the memecoin frenzy fueled by a single social media post continues to be questioned. Only time will tell if history repeats itself or if it is a short-lived echo of the past.

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