GameStop Memecoin Soars 24% after Citron Research Exit

Keith Gill’s Return Sparks Market Frenzy

The GameStop-inspired memecoin surged by nearly 24%, outperforming well-known memecoins Dogecoin (DOGE) and Shiba Inu (SHIB). This unexpected spike follows significant developments in GameStop’s stock and its associated memecoin, primarily driven by social media activity and retail investor enthusiasm.

The resurgence of GameStop (GME) shares has been remarkable, skyrocketing over 640% after the return of Keith Gill, famously known as Roaring Kitty, to social media.

GameStop Tops DOGE and SHIB

In a recent statement released, Citron Research, a firm known for its short positions, explained that it was closing its short GameStop positions, citing the market’s irrational behavior and the steadfast loyalty of its retail investors. Following the announcement, the memecoin tied to the GameStop brand gained 23.81% on Tuesday.

This rise contrasts sharply with the performances of DOGE and SHIB, which saw more modest gains of 6% and 3.7%, respectively. The renewed interest in GameStop’s shares and memecoin was significantly influenced by Keith Gill’s recent YouTube livestream, his first in three years.

This event reignited retail investors’ optimism, reminiscent of the initial surge in 2021. Accordingly, GameStop confirmed to the New York Stock Exchange that it has raised over $3 billion through recent share sales.

These funds provide the company with substantial financial flexibility, particularly in its ongoing efforts to revamp its business model and invest in new growth opportunities.

Concerns about GameStop

Meanwhile, in a recent CNBC interview, former SEC Chair Jay Clayton expressed his concerns about GameStop, likening these developments to gambling rather than traditional investing. The sentiment around the GameStop memecoin remains mixed.

The current Relative Strength Index (RSI) indicates strong bullish momentum. However, a drop below the $0.0157 support level could result in a bearish trend.

DADDY Overtakes MOTHER in Market Cap

Meanwhile, Andrew Tate-affiliated memecoin, DADDY, has surged ahead of Iggy Azalea’s MOTHER token in terms of overall evaluation, following a 450% increase that boosted its market capitalization to $300 million. Tate, known for his strong social media presence and controversial statements, has aggressively promoted DADDY.

His recent declaration that he “is taking over” the crypto meme sector has stirred considerable interest and excitement among his followers. Tate’s influence has played a critical role in the rapid ascent of the DADDY token. Current Coinmarketcap data shows that DADDY’s overall evaluation is a little over $238M, while MOTHER’s overall evaluation is about $130.7M.

Insider Trading Allegations

However, the sudden rise of DADDY has not been without controversy. On-chain analytics firm Bubblemaps has raised concerns about potential insider trading activities. According to their data, a trader purchased 30% of the DADDY token supply just hours before Tate’s public endorsement.

Furthermore, Bubblemaps reported that 11 wallets, funded through Binance, bought 20% of the token supply simultaneously, suggesting coordinated insider activity. Bubblemaps also claimed that Andrew Tate holds 40% of the total DADDY token supply, valued at $64 million.

While Tate has promised not to sell his tokens, concentrating such a significant proportion in one individual’s control raises concerns about market manipulation. If Tate were to sell his tokens, DADDY’s value could dramatically drop, mirroring past incidents with other celebrity-backed meme coins.

Despite these concerns, many memecoin traders remain optimistic about DADDY’s future. Supporters believe the token could reach a market cap of $1 billion, driven by community enthusiasm and continued promotional efforts by Tate.

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