The Man Behind GameStop (GME) Token’s 5,500% Growth

The GameStop (GME) token, part of the GameStop memecoin project on the Solana blockchain, gave an amazing 5,500% profit in the last 30 days.

In recent years, memecoins have emerged as an exciting way of earning wealth or becoming millionaires. The price increases displayed by these memcoins remain inconceivable, breaking all past profit-giving records. GameStop (GME) token is one such trendy memecoin that made hundreds of investors millionaires. 

The GME token, part of the GameStop memecoin project on the Solana blockchain, gave an amazing 5,500% profit in just 30 days. But what’s the reason behind this massive surge? To that end, we will explore in this article who influences the price of GME tokens and what your return would be if you spent a small amount on the GME token a month ago. Let’s get started.

What is GameStop (GME)?

The GameStop (GME) memecoin is a cryptocurrency based on the Solana blockchain and inspired by the GameStop stock scandal in 2021. The GameStop memecoin aims to continue the spirit of the original GameStop stock crisis, which began in January 2021.

The GameStop developers saw its asset’s pricing increase as a communal protest against major Wall Street financial institutions. They think that creating a memecoin with a similar concept would serve to further connect people and indicate that current retail investors aren’t satisfied with merely doing what financial professionals tell them. 

To achieve this purpose, GameStop token’s founders intend to make their coin as decentralized and democratic as possible. They intend to build a transparent system in which users can easily view all of the facts of how the cryptocurrency is run and to keep the GameStop meme coin 100% community-owned.

Why GameStop (GME) Token Price Is Rising?

Keith Gill, also known as “Roaring Kitty” and “DeepF***ingValue,” played a significant role in the dramatic increase in the price of the GME token. Keith Gill is an American chartered financial analyst (CFA) and investor who gained widespread recognition during the GameStop short squeeze in early 2021. 

Roaring Kitty GameStop

Gill started investing in GameStop in mid-2019 when the stock was trading at very low prices. He believed the market was undervaluing the company and saw potential for a turnaround. He posted detailed analyses and updates on his positions, showcasing significant confidence in GameStop’s potential despite skepticism from traditional financial analysts.

His posts and videos helped galvanize a large number of retail investors to buy and hold GameStop shares, contributing to the massive price increase in January 2021. The short squeeze resulted in significant financial losses for some hedge funds that had heavily shorted GameStop stock.

Gill’s activities attracted scrutiny from regulatory bodies and were subject to investigations regarding market manipulation and his professional conduct. He testified before the U.S. Congress in February 2021, asserting that his actions were based on his genuine belief in the value of GameStop and not intended to manipulate the market.

Gill then went down on all of his social media platforms. But, on May 13, he reappeared on X (formally Twitter) with a tweet that boosted the confidence of retail investors, causing the price of the GameStop token to rise by more than 200% in a single day. Following that tweet, Gill started posting memes & posts on his X account on a regular basis, revealing additional GameStop Shares-related insights.

Roaring Kitty Tweet

Source: Roaring Kitty

More recently, Gill announced a live stream that would air on his YouTube account on June 7. This update from Gill triggered the price of GME tokens to again increase by more than 500%. Since investors are waiting for an encouraging outcome from Gill’s live stream related to GameStop shares or GME tokens. 

Meanwhile, several analysts believe Gill is manipulating the price of GME tokens. However, Gill has stated clearly that he has never mentioned anything about the GME token; instead, he continues to advocate for GameStop’s stock, which is listed on the NYSE. 

Apart from that, Gill also mentioned that he never spread misleading information related to GameStop shares; instead, he believes in this stock based on thorough market analysis. 

What If You Invested a Small Amount of Funds in GME Token?

Let’s consider two scenarios where you invest ₹5,000 and ₹10,000 in GME tokens.

Scenario 1: Invested ₹5,000 in GameStop (GME)

In the first scenario, imagine you are an investor eager to invest in GME tokens. So, you invested ₹5,000 in the last month, at the price of ₹0.04, which yields about 125,000 tokens. Currently, the value of the GME token has increased significantly to ₹2.55. Your initial investment of ₹5,000 leads to a portfolio worth ₹280,000, giving you a magnificent ₹275,000 profit in just a single month.

GME Value at the time of Investment Capital Invested  Growth Percentage Showed by GME  Current Value of Your Investment Profit Earned 
₹0.04 ₹5,000 5,500% ₹280,000 ₹275,000

Scenario 2: Invested ₹10,000 in GameStop (GME)

In scenario 2, consider investing ₹10,000 in GameStop (GME). With this additional funding, you will obtain roughly 250,000 tokens. Currently, the value of the GME token has increased significantly to ₹2.55, which leads your portfolio to become a valuable asset worth ₹560,000. This significant rise yields a profit of ₹550,000, highlighting the exponential benefits possible with a greater investment.

GME Value at the time of Investment Capital Invested  Growth Percentage Showed by GME  Current Value of Your Investment Profit Earned 
₹0.04 ₹10,000 5,500% ₹560,000 ₹550,000

GME Technical Analysis: Is It a Good Investment Option?

The GameStop (GME) token is currently trading at ₹2.61, up more than 169% in the previous 24 hours. The token’s swift price increase boosted its market capitalization to ₹17.98 billion, propelling it into the Top 30 memecoins by market valuation.

GameStop Live Chart

In terms of technical analysis, the MACD level for GME exhibits positive signs, representing the strength and direction of the trend. An upward MACD indicates that short-term momentum exceeds long-term momentum, suggesting a bullish trend. Moreover, GameStop’s RSI is now at 78.68, indicating that it is overbought. 

At this early stage, it is hard to predict whether GME tokens will be a good investment. However, given the spectacular price increase and Keith Gill’s ongoing indirect support, it is possible that GME may enter the battle for the top ten memecoins by market valuation. 

Conclusion

The recent increase in GameStop (GME) tokens may be attributed to a variety of causes, including the influence of the meme coin craze, the power of social media, positive market emotions, and rumors of a potential short squeeze. However, the primary reason will be the guy, Keith Gill.

As the narrative continues, everyone will be looking to see if GME can keep up its pace or if this is just another round in the continuing war between individual investors and Wall Street. 

To learn more about GameStop (GME), go check out SunCrypto Academy.

 

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. All content provided is for informational purposes only, and shall not be relied upon as financial/investment advice. Opinions shared, if any, are only shared for information and education purposes. Although the best efforts have been made to ensure all information is accurate and up to date, occasionally unintended errors or misprints may occur. We recommend you do your own research or consult an expert before making any investment decision. You may write to us at [email protected].

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