- • The return of “Roaring Kitty” Keith Gill’s social media account has boosted meme stocks like GameStop and AMC Entertainment, with GameStop shares spiking over 100% in early trading on Monday.
- • Memecoins like Dogecoin and Shiba Inu also saw significant price increases, with Dogecoin up around 58% over the past 24 hours.
- • Gill and the WallStreetBets subreddit were at the center of the 2021 meme stock frenzy that led to scrutiny from regulators and a Congressional hearing.
The popular Roaring Kitty account posted on Reddit Sunday night for the first time in nearly three years. Keith Gill and the subreddit WallStreetBets were at the center of the 2021 meme stock frenzy. The return of Roaring Kitty has boosted several so-called meme stocks and coins.
Roaring Kitty’s Return
The RoaringKitty account on Reddit was dormant from June 2021 until Sunday night when the account posted a meme frequently used by video gamers. This post alone was enough for GameStop‘s stock to spike over 100% Monday morning.
Around this same time, traders began piling into Dogecoin, which was trading under $0.01 a share in January 2021 and crossed the $0.50 mark that May before falling back. At publication time, Dogecoin trades at $0.15.
Impact on Markets
Gill and WallStreetBets were at the center of the 2021 meme stock frenzy when shares of GameStop and AMC Entertainment, among others, surged more than 1000% by the end of the year. Other struggling stocks like BlackBerry and Bed Bath & Beyond also dealt with wild share price fluctuations throughout that year.
The return of Roaring Kitty has boosted several so-called meme stocks and coins in the US markets this morning. The GME meme token, which borrows GameStop’s stock ticker but has no official affiliation with the company, traded more than 1200% higher on Monday.
Regulatory Response
The frenzy Gill created in 2021 led to reviews from the SEC, attorneys general of New York and Texas, and eventually a US Congressional hearing. Robinhood and its co-founder Vlad Tenev became embroiled in the controversy as well.
Settlement cycles came into the forefront in 2022 as the sharp increase in trading volumes caused Robinhood to temporarily halt trading in certain shares, drawing outrage from users. Today crypto makes up a significant portion of Robinhood’s business.
Conclusion
The return of the influential Roaring Kitty Reddit account has shaken up markets once again. Meme stocks and coins closely tied to Reddit traders are seeing giant spikes, reminiscent of the massive rallies in 2021. Regulators are likely keeping a close eye on these developments.
