(MENAFN- ValueWalk) Many traditional traders speculate that the next GameStop (GME) could be a cryptocurrency-specifically, a meme coin.
To recap, GME was trading under $5 in July 2020 and around $500 in the premarket by the end of January 2021.
Numerous stock traders on social media coordinated their trades to buy the stock to take out a large hedge fund that was shorting GME. Kieth Gill, aka Roaring Kitty, who sparked the rally in GameStop, is speculated to have earned millions of dollars.
After being silent on X (formerly known as Twitter) since June 2021, Gill posted an image of a man holding a game console on Monday, May 13:
The stock market was thrilled with Gill's comeback. Meme stocks, including GameStop and AMC, saw extraordinary gains. A warm welcome to Gill from the market.
The rally picked up steam on from Monday's session . Explosive gains are taking place at the time of this writing.
source: yahoo finance
source: yahoo finance
Unlike meme stocks, meme coins do not have earnings to report every quarter. Most meme coins have nothing to offer but a 'catchy' image representing the coin such as a dog or a cat.
Meme coins greatly depend on the community's spreading the word through social media or other channels. If they succeed, the coin's price will rally, forcing others to join for fear of missing out (FOMO).
Is Ansem the 'Roaring Kitty' of crypto?
Ansem is a reputable crypto trader on social media. He bought Solana while trading under $2 (SOL peaked at around $260). He also contributed to Dogwifhat (a popular meme coin) rally. Dogwifhat was trading at $0.25 in January 2024. At the end of April 2024, it reached $4.80 (approx.).
Some see similarities between Roaring Kitty and Ansem. While it is true that short squeezes in crypto are not similar to GME's short squeeze, both traders have large communities that follow them.
The buying power of the communities should not be disregarded. In the case of Ansem, coins that he shows interest in are tracked by thousands of crypto traders. $WIF is a great example of how much power Ansem has.
He recently showed interest in BODEN, PUPS, and BASE meme coins. Solana has been home to many successful meme coins. However, BASE, developed by Coinbase has been attracting new meme coins with high trading volumes.
The next GameStop meme coin could come from BASE
BASE is expected to attract millions of users. Coinbase is developing two new wallet solutions to increase the chain's adoption rate: smart wallets and embedded wallets.
Smart wallets allow users to use their Coinbase balance across multiple dApps without transferring funds to another wallet, with no seed phrases and no passwords.
Embedded wallets strip away the complexity of crypto wallets. Instead, users can sign in using an email address or a social login with which they are already familiar.
Ansem may be adopting a long-term view on BASE meme coins. If the chain attracts many new users, BASE meme coins may experience moderate growth. A new meme coin on BASE, Dogeverse , has been gaining much attention, raising $15M so far in the presale stage.
To conclude, the crypto jungle should be explored if you are looking for the next GameStop.
Please note that meme coins are subject to extreme volatility.
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