The Influence Of Roaring Kitty On GameStop And GME Tokens
GameStop, a leading video game retailer, has had an unfavorable fate. The reason is, GameStop's share value has fallen to 30%. At the close of Thursday's trading session, GameStop shares were recorded at 27.67 US Dollars (Rp441,665.05).
Earlier this week, GameStop was again in the spotlight with the appearance of Keith Gill, known as The Roaring Kitty' on social media, which is one of the main drivers of the GameStop stock spike in 2021. After being out of the public, Gill reappeared and became a signal for retail investors to revive their actions from the previous year.
This effect is not only limited to GameStop but also affects other stocks such as AMC Entertainment which Wall Street is hosting a lot. GameStop shares had peaked in the last 18 months at 64.83 US Dollars (Rp1,035,317.95).
Not only stocks, the effect is also felt on GME tokens, unofficial GameStop tokens. The GME meme coin itself was massively pumped on the return of thelairing Kitty.
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Despite the latest decline, GameStop shares have still recorded an increase of more than 53% in the last five days. However, market experts suggest that investors be careful with excess exposure to GameStop stocks because of their speculative nature.
As reported by CoinGape, Gregory Davis, CIO Vanguard, reminded that although there is a hype trend around GameStop, the company's financial and fundamental conditions have not changed significantly.
The drop in GameStop share prices reflects a broader trend in volatile asset markets. Crypto assets such as Bitcoin (BTC) and Ethereum (ETH), as well as crypto-focused stocks such as Coinbase, have also decreased.
This decline occurred even though the US Senate canceled the SEC-sponsored SATB 121 accounting rules, aiming to prevent banks from holding Bitcoin. Despite the huge veto potential, investors don't seem enthusiastic about the win.
With this change, the future of GameStop is still uncertain, and investors are advised to be careful of high volatility in trading stocks and other crypto assets.