Memcoins are cryptocurrencies that are gaining popularity due to internet memes and social media. One prominent example of memcoins are CHWY and GME, which have become known for their connection to meme culture and stock trends. The recent rise in their value was driven by the publication of Roaring Kitty (also known as Keith Gill), which had a notable impact on the market. In this article, we will look at what happened to CHWY and GME memcoins after the publication of Roaring Kitty and what factors contributed to this jump.
1. Who is Roaring Kitty?
Roaring Kitty (Keith Gill) is an investor and popular YouTuber who has gained notoriety for his videos on investing and trading, especially on GameStop (GME) stocks. Gill was a key player in the famous “meme war” with GameStop, having a significant impact on its stock in early 2021. His active promotion of GME stock as well as other investment strategies have made him a cult figure among traders and investors.
2. What happened to CHWY and GME?
GME (GameStop): GME stock became known for a short-term spike in January 2021, which was driven by retail investors coordinating via Reddit. After that time, GME stock continued its volatile behaviour, often reacting to news and media mentions. Roaring Kitty’s posts about or mentions of GME may have increased interest in the stock, causing a new spike in its value.
CHWY (Chewy): While Chewy (CHWY) is not a direct competitor of GameStop, its stock could also react to large investors and market trends. If Roaring Kitty or other large investors began discussing or recommending CHWY stock, it could lead to an increase in its value. Often, stocks of companies with high growth rates and popular in the media can also show dramatic changes in price.
3. Factors contributing to growth
Social MediaInfluence: On social media and in investment forums, discussion of the actions of famous personalities such as Roaring Kitty can significantly influence market trends. Posts and comments by popular traders can create “media buzz” that attracts the attention of other investors.
Speculative trades: Posts or comments by prominent traders can trigger speculative buying by investors looking to capitalise on short-term market movements. This can lead to sharp swings in stock prices.
Memcoin Market: Memcoins often exhibit high volatility due to their nature and speculative nature. The influence of celebrities and traders on such assets can be particularly pronounced.
4. Risks and Cautions
Volatility: Equities, especially memcoins, are subject to high volatility. Investors should be prepared for significant fluctuations in value and consider the risks associated with investing in such assets.
Speculation: Investing based on recommendations or discussions on social media can be risky. Investors should do their own research and assess the risks before making investment decisions.
Long-term perspective: Investments based on short-term trends and discussions may not be consistent with long-term financial goals. It is important to consider the long-term outlook and stability of the company when making investment decisions.
Conclusion
The rise of CHWY and GME memcoins following the Roaring Kitty publications highlights the impact that popular traders and social media can have on financial markets. Investors should pay close attention to such trends, assess potential risks and conduct their own research before making investment decisions. Understanding the influence of public opinion on the market and exercising caution can help minimise risk and make informed decisions.