GameStop sparks 2021 memecoin bull run – will history repeat itself?
The sudden and unexpected return of Keith Gill — the man widely credited with kicking off the 2021 GameStop brief — has speculation begging one question: Have we entered GameStop 2.0?
Many are hopeful, but at least one analyst is skeptical.
Gill was at the center of the GameStop saga during the outbreak, which saw Reddit traders turn the tables on what they believed to be a failed brick-and-mortar game store. GME is growing over 1,000% in less than a month.
Some believe GameStop's short squeeze laid the groundwork for the surge in the price of memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB) after the retailer shifted its focus elsewhere.
Gill went dark on social media on June 19, 2021, but returned on May 13 after a three-year hiatus, posting a cryptic sign while sitting on his chair to announce his return.
In the 24 hours since Gil's return to X, GameStop shares have risen as much as 111%, while DOGE and SHIB have gained 6.2% and 5.4% in the same period.
Now, crypto enthusiasts are holding out hope that Gill's return will ignite a similar breed of retail mania.
An analyst is not very good.
However, eToro market analyst Josh Gilbert told Cointelegraph that it might not be that simple this time around.
“I think it will certainly fuel some short-term activity from these assets, but it's hard to see longevity,” he said.
Gilbert also noted that impressive shorts at properties like GameStop were much smaller compared to 2021, suggesting that the “upward transfer rate” may also be lower.
“The environment is not comparable to 2021, when interest rates were at extreme levels, governments around the world were providing fiscal stimulus, and major economies were experiencing no inflation.
“We have 5.5% interest rates in the US and a global cost of living crisis is happening. Simply put, consumers are less likely to be in the same position as they were in 2021, and that has a big impact on financial decisions,” Gilbert added.
Crypto enthusiasts have presented a more simplistic thesis for their energy.
Pointing to an imminent merger between Robinhood and decentralized exchange UniSwap, anonymous trader Travis said it's reasonable to expect to start buying memecoins and other cryptocurrencies through the app.
“Just a note you can now trade memes on Robinhood. You think Roaring Kitty's army doesn't buy these things?”
However, Gilbert, among many other reasons, said that most investors now understand how speculative rallies end and can be more cautious.
“In the year “I think we're in a completely different position than we were in 2021, and that makes me think that a similar rally is unthinkable,” he said.
“That said, the 14.5 million users on Wall StreetBet have shown over the past few years that anything is possible.”
Several GameStop-related memecoins have risen sharply amid the ongoing drama, including a coin called GameStop (GME) — which has no legal ties to the company. GME's memecoin is up more than 3,650% in one day, according to Birdeye data.
Magazine: Memecoins: Betraying Crypto Ideas… Or Its True Purpose?
