GameStop cryptocurrency surges 100%, challenging Andrew Leff’s short position

NOIDA (CoinChapter.com) – In a near-parody reminder of the 2021 “meme stock frenzy,” GameStop cryptocurrency token GME surged 1,00% on June 7, sparking a new wave of interest in it.

A product of the chaotic energy of the original GameStop stock saga, the GME token was launched on January 28, 2024 as a tribute to the retail investors who famously challenged Wall Street.

The recent rally came after the reappearance of Keith Gill, also known as Roaring Kitty, who reignited excitement by posting about his GameStop stock holdings via social media. In addition, Gill is set to appear in a YouTube livestream on June 7, which could further drive prices higher.

The meteoric rise of the GME token: A slap in the face for Leif’s short bet

The surge in value of GME tokens, a meme-like token on the Solana blockchain, highlights the staying power of retail investor enthusiasm.

Over the past seven days, GameStop tokens have gained nearly 7,65%, reaching a daily high near $0.032 before giving up some ground on the day. The rally mirrored GameStop shares’ surge in May, driven by the same frenzy that upended Wall Street.

The token’s market cap swelled 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 view on GameStop. Leff, a well-known short seller, lost 1,001 TP3T on his short bet against GameStop in 2021.

Still, he stuck to his short stance, calling the stock "extremely overvalued" and pointing to speculative trading as a driver of its recent rally.

Leif is bearish on GameStop, while traders question market fairness

Andrew Leve's new bet on GameStop comes with a cautious tone. Learning from his expensive experience in 2021, Leve is making sure his short position is smaller and more cautious this time around.

The veteran trader admitted he was caught off guard by the volatility of the "crazy" stocks and said it would be unwise to bet big on such shares.

Despite his cautious stance, Leff remains skeptical of GameStop’s valuation. Furthermore, Leff claims that the recent surge in the share price is unjustified and reflects a phenomenon of “a bunch of gamblers.” However, the simultaneous rise of GameStop stock and GME tokens suggests otherwise.

Despite traders’ bearish views on GameStop, the recent gains in both meme stocks and meme tokens highlight the enduring influence of retail investors and the power of community-driven market movements.

Accusations of market manipulation emerged on social media.

Meanwhile, frequent trading halts in GameStop (GME) have raised major concerns about market fairness. Traders believe these halts are intended to protect the interests of larger players, which appears to be undermining the integrity of the market.

Critics say these interventions feed into the perception that the stock market is controlled by an elite. This perception of manipulation undermines the confidence of ordinary investors and fosters frustration and disillusionment with the financial system.

These strategies could exacerbate the sentiment that fueled GameStop's previous rally, which could really derail Leff's plans to short the stock.