GameStop Cryptocurrency Surges 100%, a Parade of Middle Finger-Offering to Andrew Leff’s Short Position
NOIDA (CoinChapter.com) — In an almost literal reminder of the 2021 meme stock frenzy, GameStop cryptocurrency token GME sparked intense interest again on June 7, skyrocketing 1,00%.
Born from the chaotic energy of the original GameStop stock saga, the GME token was launched on January 28, 2024 as a tribute to the retail investor who famously challenged Wall Street.
The recent rally came after the reappearance of Keith Gill, also known as Roaring Kitty, who rekindled enthusiasm through social media posts about his GameStop stock holdings. In addition, Gill is set to appear in a YouTube livestream on June 7, which could further boost prices.
GME tokens skyrocket: a slap in the face for Leif’s bearish bet
The surge in value of the GME token, a meme coin on the Solana blockchain, highlights the staying power of retail investor frenzy.
Price action for GameStop tokens over the past seven days. Source: CoinMarketCap
Over the past seven days, GME token prices have surged nearly 7,65%, reaching a high of nearly $0.032 per day before retreating a bit later in the day. The rally mirrored GameStop shares’ surge in May, fueled by the same enthusiasm that roiled Wall Street.
The token’s market cap surged from less than $4 million to more than $156 million in just a few days.
This bullish trend in the GME token directly challenges Andrew Leff’s bearish stance on GameStop. Leff, a well-known short seller, lost 1,001 TP3T on his short bet against GameStop in 2021.
Still, he doubled down on his bearish stance, labeling the stock “extremely overvalued” and attributing its recent gains to speculative trading.
Leif is bearish on Gamestop while traders question market fairness
Andrew Leff is taking a cautious approach to his renewed bearish bet on GameStop. Learning from his expensive experience in 2021, Leff is making sure his short positions are smaller and more prudent.
The veteran trader admitted that the volatility of the "cult" stocks caught him off guard and said it would be unwise to bet big on such stocks.
Despite his cautious stance, Leff remains skeptical of GameStop’s valuation. Furthermore, Leff claims that the recent surge in stock prices is unjustified and reflects a “nation of gamblers.” However, the simultaneous rise in GameStop stock and GME tokens seems to indicate otherwise.
Despite traders’ bearish stance on GameStop, the recent rally in meme stocks and meme tokens highlights the enduring influence of retail investors and the power of communities to drive market movements.
Allegations of market manipulation circulated on social media.
At the same time, frequent trading disruptions in GameStop (GME) have raised major concerns about market fairness. These disruptions, which are seen by traders as a means to protect the interests of larger players, appear to have undermined the integrity of the market.
Critics say the outages spread the idea that the stock market is a rigged game controlled by an elite. Such perceptions of manipulation can wear away the confidence of ordinary investors and foster frustration and disillusionment with the financial system.
These strategies could exacerbate the sentiment that drove GameStop's previous gains, which could actually derail Leff's plans to short the stock.