The latest news concerning Roaring Kitty does not seem to have affected the trend of the video game retail giant, GameStop. While the price of the shares and the Solana-based crypto GME seems positive, the man of the 2021 “meme stock mania” has sold his stake in Chewy.
GameStop: the sale of Chewy by Roaring Kitty did not affect the stock price and crypto GME
Last Tuesday, the filing of the United States Securities and Exchange Commission (SEC) reported that Roaring Kitty sold his holdings of Chewy.
Chewy is an e-commerce company that sells pet food, founded by the CEO of GameStop, Ryan Cohen. Roaring Kitty, on the other hand, is the author of the meme stock mania of 2021, the one who would have sparked the euphoria and the rise in GME stock prices of GameStop.
And so, last June 2024, just when Roaring Kitty (whose real name is Keith Gill) had accumulated a 6.6% stake in Chewy, the company’s shares had recorded a pump of +10%.
An increase that follows the trend, but is not comparable to the price increase recorded by GME shares.
Now, however, Roaring Kitty has backtracked, at least with Chewy. This truth, confirmed by the filing with the SEC, was also announced on X at the beginning of September:
— Roaring Kitty (@TheRoaringKitty) September 6, 2024
For some followers, the particular Toy Story 2 meme showing Andy, the human child from the film, dropping a Woody doll with a dog’s head, was interpreted as the end of the relationship with Chewy.
GameStop: the price of the shares and the Solana-based crypto GME
Apparently, the speech by Roaring Kitty and Chewy is not connected to the trend of the GameStop stock price and the Solana-based GME crypto.
In fact, in the last five days, GME shares have even risen in price. At the time of writing, GameStop Corp. Stock is worth $23.45, in a pump of +4.87% compared to Tuesday.
This GME stock price is also the highest reached in the last month. In fact, GME stocks are in a pump of +13.23% compared to thirty days ago.
Even the meme crypto dedicated to GameStop, GME, based on Solana, is experiencing a price recovery from Tuesday, November 5, moving from $0.0034 to the current $0.0041.
GameStop and the return of the meme stock mania of Roaring Kitty
After three years of absolute silence, last May 2024, Roaring Kitty returned on X with a new post, shaking the market once again.
In fact, Roaring Kitty, known on Reddit as DeepF——Value, managed in 2021 to attract an army of day traders who encouraged each other by investing in the brick-and-mortar video game stock and in GameStop call options between 2020 and 2021.
Roaring Kitty became so famous in the world of stock trading because he managed to turn the GameStop case into a “meme stock mania.”
Specifically, Roaring Kitty and other retail investors gathered on a forum on Reddit, the WallStreetBets to discuss and make mass decisions.
Thus, upon learning that some hedge funds were ready to short sell GME stocks, given that GameStop was unable to respond to technological innovation, retail investors bought GME stocks en masse, triggering the short squeeze.
While the price of GME was rising due to purchases, hedge funds were accumulating losses of billions of dollars in a few hours, selling their shares at a higher price.
In any case, Roaring Kitty’s 2024 tweet has once again set the web ablaze, garnering 63,000 likes on the X post alone in just 13 hours. Not only that, but on the stock market, GME shares recorded an increase of +74.4%, after a surge of +110%.
The stocks and the crypto GME in 2024 with Roaring Kitty active
The great return of Roaring Kitty on X and Reddit was felt even more in the month of June 2024.
In fact, at the beginning of that month a boom in the pre-market of GME shares was recorded: after the stock closed at $23 on Friday, the pre-market opening on Monday was $47.
At that moment, Roaring Kitty had posted a meme tweet that referred to the initiative of the whale that had a call position set at $20. Shortly after, also on Reddit, the king of the meme stock mania had posted something related.
Speaking instead of crypto GME, in May 2024, the crypto-exchange of Bitget had published the news of having listed the token Solana-based dedicated to the GameStop meme.
At that moment, the memecoin recorded a price pump of +400% in just 24 hours. In June 2024, the crypto GME reached its all-time high of $0.024. From the end of July this year until today, the price of GME has not experienced significant fluctuations, remaining below the threshold of $0.005.
The Class Action
The latest news about Roaring Kitty, besides having sold his stake in Chewy, is the class action underway against him regarding GameStop shares.
In practice, Keith Gill will face charges of financial fraud for orchestrating a “pump and dump” scheme with a series of social media posts starting from May 13, 2024.
For the accusation, Gill is guilty of deceiving his followers, by inadequately disclosing the purchase and sale of his options on GameStop.