GME, a parody memecoin of GameStop, has exceeded a market capitalization of $100 million amidst a trading frenzy surrounding the unrelated GameStop entity. As of May 14, GME memecoin has gained 2,291% in the past week and is currently trading at $0.01449. This surge in value has been driven by investor interest in GameStop Corp shares, which have seen a 228% increase in the last five trading days.
The listing of GME memecoin on centralized exchanges like Bitget and BingX has also contributed to increased buying activity. The unexpected return of Keith Gill, who is credited with initiating the GameStop short squeeze earlier this year, has led to another short squeeze of GameStop shares. Following Gill’s return, GameStop shares saw a price increase of up to 111% within 24 hours.
Not only everyday traders, but also GameStop’s CEO Ryan Cohen, who holds a 12% stake in the company, is benefiting from the market euphoria. Cohen reportedly has $1 billion in unrealized capital gains resulting from the ongoing short squeeze.
This year, the crypto industry has been swept up in memecoin hysteria. On May 13, Pepe the Frog memecoin Pepe rallied over 34% to reach a new record high of $0.00001119. On March 22, Solana memecoin Dogwifhat reached a record high following a $700,000 fundraiser. The price of Dogwifhat spiked 25% after the campaign, briefly reaching $3 with a market capitalization of $3 billion. On April 3, a trader reportedly turned $13,000 into $2 million by investing in Bitget Wallet’s Donotfomoew memecoin shortly after its launch.
However, experts have issued warnings about the risky nature of investing in memecoins. Several Solana memecoins allegedly raised a total of $26.7 million from investors before abandoning their projects. One of the most expensive abandoned projects was a memecoin called “I like this coin,” which had the ticker LIKE.
In summary, the trading frenzy surrounding GME memecoin and GameStop shares has led to significant market gains. The popularity of memecoins has also caused excitement in the crypto industry, but experts caution against the risks involved in investing in these speculative assets.