• The unofficial Solana GameStop memecoin (GME) has surpassed $100 million in market capitalization.
• GME’s price has soared over 2,000% in the past week, fueled by the surge in GameStop’s stock price.
• The memecoin’s listing on centralized exchanges like Bitget and BingX appears to have propelled buying activity.
An unofficial Solana memecoin named GME has surged past $100 million in market capitalization, fueled by the recent frenzy around GameStop’s stock price. The memecoin was created in February 2022 and has no direct affiliation with GameStop Corp.
GME Token Price Skyrockets
The GME token price has risen over 2,291% in the past week, reaching $0.001449 at the time of writing. This massive gain comes as GameStop’s stock has jumped 228% in the last five days amid a short squeeze driven by retail traders like Keith Gill. The memecoin’s listings on exchanges like Bitget and BingX have also boosted its trading activity and price.
Windfall for GameStop Leadership
GameStop chairman and CEO Ryan Cohen holds a 12% stake in the company, equating to over $1 billion in unrealized gains from the ongoing share price surge. The meme stock mania has been highly profitable for GameStop leadership and shareholders.
Memecoin Frenzy Grips Crypto
The hype around meme-inspired cryptocurrencies has exploded in 2022. For example, the Pepe memecoin hit a record high after rising 34% in one day in mid-May. In late March, the Dogwifhat token surged 25% following a $700,000 fundraiser. Some traders have scored massive gains from new memecoin launches like Donotfomoew on Base.
Warnings Over Memecoin Risks
However, experts have warned about the risks of investing in these speculative memecoins. According to researcher ZachXBT, 12 abandoned Solana memecoin projects allegedly raised $267 million from investors this year before abruptly shutting down. The hype appears disconnected from project fundamentals.
Conclusion
Meme-based cryptocurrencies like GME have seen their prices explode higher amid the mania around GameStop’s stock. While fortunes have been made speculating on these tokens, experts urge caution around the inherent risks of memecoin investing. The hype cycle may be detached from real project value.
