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Gamestop Parody Memecoin Crosses $100M Market Cap: What is $GME?

by BSC News

May 14, 2024

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The memecoin aims to capture the spirit of the 2021 GameStop stock surge, symbolizing a collective rebellion against Wall Street.

The GameStop-themed memecoin on Solana, also known as $GME, has seen a meteoric rise, crossing a market cap of $100 million

 

This surge comes amid a renewed interest in GameStop, with its share price doubling from Friday’s close to Monday’s open and trading paused multiple times due to volatility. 

 

The "GameStop" token on Solana experienced a 1,900% price jump over the past 48 hours, reaching a recent  top of approximately $0.0177. But what exactly is $GME memecoin? Let's find out.

Origin of the GameStop Memecoin

The GameStop memecoin, an unofficial tribute to the original Gamestop company, was launched in January after GameStop announced its withdrawal from the crypto world and the shutdown of its NFT marketplace. 

 

$GME memecoin's creators hoped to carry on the spirit of the 2021 GameStop stock surge, which was seen as a rebellion against Wall Street. The memecoin seeks to unite modern retail investors and challenge traditional financial norms.

 

GameStop Corp., headquartered in Grapevine, Texas, is the largest video game retailer worldwide.

The Ethos Behind $GME

The 2021 GameStop stock short squeeze was a defining moment in financial history. During the COVID-19 pandemic, GameStop's video game stores struggled, leading major financial firms to short the stock. 

 

These investors bet against the stock, hoping to profit from its decline. However, community members on the WallStreetBets subreddit noticed this and began buying the stock, triggering a cycle of skyrocketing prices as institutional investors scrambled to cover their shorts. This movement turned holding GameStop stock into a form of protest against big financial corporations.

 

By purchasing GameStop shares en masse, they drove the price up, forcing short sellers to buy back shares at higher prices to cover their positions. This created a feedback loop, pushing prices from $17 to $500 in under a month. The saga made GameStop a symbol of retail investors taking on Wall Street.

How Does the GameStop Memecoin Work?

To ensure decentralization and democracy, the creators of $GME built it on the Solana network, known for its speed, affordability, and ease of use. The coin relies heavily on marketing and the nostalgia of the original GameStop stock surge.

 

The creators of $GME aim to maintain it as an entirely community-owned coin. They promise a transparent system where users can see all operational details. This transparency is crucial to their vision of creating a decentralized and democratic financial tool. 

 

The total supply of GME is set at 6.9 billion coins. According to CoinMarketCap, 100% of the tokens are in circulation. 

Connection to Roaring Kitty

The $GME memecoin draws inspiration from the 2021 GameStop stock saga, led by retail investor Keith Gill, aka Roaring Kitty. His posts and livestreams on Reddit encouraged traders to buy and hold GameStop shares, leading to a significant price in Gamestoop stock.

 

Gill’s influence extended beyond GameStop, sparking interest in other nostalgic brands and meme coins. Roaring Kitty has returned to posting regularly on Twitter, which led to renewed interest in Gamestop stock and related meme coins.

Disclaimer

Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article

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