GameStop token (GME) price surged by more than 10% on Tuesday, following the unexpected return of popular finance influencer Roaring Kitty, also known as Keith Gill. Gill, who gained fame for his role in the GameStop short squeeze of 2021, posted a Rick James-themed GIF on social media, triggering a significant uptick in trading volume.
According to CoinGecko data, Solana-based token GME, which is not directly connected to the Gaming giants stock, saw its price rise to $0.00402, a 13% 24-hour uptick, with its market capitalization reaching $27.57 million.
This jump was accompanied by a 47% increase in its 24-hour trading activity, which totaled $10.28 million.
Gill’s posts have historically had a profound effect on both the stock and crypto prices tied to GameStop.
Roaring Kitty’s impact on GameStop’s history
Gill’s connection to GameStop dates back to January 2021, when he helped the company through a period of financial instability. He invested $53,000 into GameStop and became a vocal advocate for the company’s stock, promoting it to his growing online following.
This led to one of the most infamous moments in retail investing history. GameStop’s stock price went up exponentially, forcing institutional short-sellers to cover their positions and sending the stock to all-time highs above $81.
After the frenzy of 2021, Gill disappeared from social media for nearly three years. His return in May 2024 reignited interest in GameStop, with his first post causing a 50% surge in the stock price.
Just as equities investors have witnessed, Gill’s influence on the GameStop meme token movement is also “inevitable,” as every time he shares an update, a wave of profits immediately follows. GME surged 72% after Gill’s post in early December 2024, taking its price to $0.007672, although the memecoin has since shed those profits.
Investors incurring losses target the Roaring Kitty
In June 2024, a GME investor filed a lawsuit against Gill, accusing him of orchestrating a “pump and dump” scheme using his social media influence to inflate GameStop’s stock price for personal gain.
The plaintiff claimed that Gill secretly bought call options on GameStop just before his social media posts, which led to a surge in the stock price. Following the price spike, it was alleged that Gill sold his call options at a significant profit.
According to the lawsuit, Gill bought a substantial amount of GameStop call options at relatively low prices on E*Trade prior to his May 12, 2024 social media post on X. This post, which marked his return to the platform after nearly three years, reignited the meme stock movement, driving up the value of GameStop securities.
The complaint further claims that Gill continued to manipulate the stock’s value by posting an update on Reddit on June 2, 2024, where he revealed his significant position in GME, including 120,000 call options and 5 million shares of GameStop stock.
According to the plaintiff, Gill sold or exercised all 120,000 of his call options by June 13, 2024, at a profit, significantly increasing his stake in the company.
The investor behind the legal complaint argued that they were financially harmed by these actions. They claimed to have purchased 10 shares of GME shortly after Gill’s May 12 tweet and additional shares in early June. They also reportedly acquired three options during the same period, though the exact extent of the alleged losses remains unclear.
The lawsuit, which claimed damages from the inflated stock prices, was dropped three days later after the accuser voluntarily dismissed the case. Legal experts, including former federal prosecutor Eric Rosen, pointed out that the lawsuit likely lacked sufficient evidence to prove fraud, making it unlikely to succeed in court.
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