QuickTake

• GameStop-inspired memecoins GME, KITTY, and ROAR fell significantly during Roaring Kitty’s first livestream in three years.
• GameStop’s stock on the NYSE dropped by 40% during the event.

A trio of GameStop-inspired memecoins experienced a significant downturn on Friday during the much-anticipated return of “Roaring Kitty” to livestreaming. This event marked Keith Gill’s first livestream in three years, attracting a massive audience and creating substantial market ripples.

Keith Gill, better known by his online alias “Roaring Kitty,” gained notoriety in 2021 for his pivotal role in the retail trading frenzy that dramatically increased the stock prices of companies like GameStop and AMC. His livestream on Friday, which lasted 45 minutes and was filled with his trademark humor and in-depth market analysis, drew over 600,000 viewers eager to see his latest insights and positions on GameStop.

Livestream Impact on Memecoins

The livestream had an immediate and profound effect on several memecoins associated with GameStop. According to CoinGecko price data, the memecoins GME and ROAR saw their prices plummet by approximately 24% and 31%, respectively, by the end of the stream. KITTY, another memecoin, also experienced a sharp decline, dropping around 17% during the livestream. These declines were particularly striking given that all three memecoins had surged in value by triple digits in overnight trading prior to the event.

It is important to note that these memecoins, despite their names and the fervor surrounding them, are not officially linked to Keith Gill or the GameStop corporation. GME, for instance, is a Solana-based memecoin that shares its ticker symbol with GameStop’s NYSE stock but has no formal affiliation with the video game retailer.

GameStop Stock Decline

GameStop’s own stock did not escape the turmoil. By the time the livestream concluded, the stock had dropped by 40% on the New York Stock Exchange. This decline reflects the volatile nature of meme stocks and the significant impact that influential figures like Roaring Kitty can have on market sentiment and investor behavior.

Controversy and Criticism

The resurgence of Roaring Kitty has not been without controversy. Critics argue that Gill’s livestreams can manipulate the stock market, potentially violating federal securities laws. This concern was highlighted earlier in the week when The Wall Street Journal reported that E*Trade, a major trading platform, was considering barring Gill from using its services due to worries about possible stock manipulation.

This potential action by E*Trade underscores the ongoing scrutiny and debate over the role of influencers in the financial markets. The rise of social media and livestreaming platforms has given individual investors unprecedented power to move markets, often leading to dramatic and sometimes destabilizing swings in stock prices.

Broader Market Impact

The turbulence was not limited to GameStop and its associated memecoins. The broader cryptocurrency market also faced selling pressure on Friday. Bitcoin, the largest and most well-known cryptocurrency, saw its price drop by 2.7%, trading at $69,071.36 according to data from The Block. This downward trend in the crypto market highlights the interconnectedness of financial markets and how significant events can trigger widespread reactions across different asset classes.

Looking Ahead

As the dust settles from Roaring Kitty’s return, market participants are left to ponder the broader implications of such events. The dramatic price movements seen in GameStop’s stock and related memecoins during the livestream serve as a reminder of the volatility and unpredictability inherent in the current market environment.

For Keith Gill, his reemergence as a livestreamer rekindles his influential presence in the trading community. However, it also places him under the microscope of regulators and trading platforms concerned about the potential for market manipulation.

For investors, the key takeaway is the importance of caution and critical thinking in the face of market hype and influencer-driven trading. While the allure of quick gains can be strong, the risks associated with meme stocks and cryptocurrencies can be equally significant.

Conclusion

The dramatic drop in GameStop-inspired memecoins and the substantial decline in GameStop’s stock following Roaring Kitty’s livestream highlight the powerful influence of social media figures on the financial markets. As Keith Gill continues to captivate and stir the trading community, his actions and their repercussions will undoubtedly remain a focal point for both regulators and investors. The event underscores the need for careful market analysis and the potential hazards of trading based on influencer-driven hype.