Here we go again. Back in early 2021, GameStop (NYSE:GME) stock squeezed to historic highs, rewarding retail shareholders and inflicting severe damage on short institutional investors. No one took more damage than Gabe Plotkin’s Melvin Capital, which suffered a 55% loss in January 2021 and ended the year down by 39.3% due to its short position. In 2022, the hedge fund announced that it would close down and return capital to shareholders following the harrowing loss.
Today, GME stock is down by over 80% compared to its peak in 2021. However, a new meme coin seeks to relive the historic 2021 meme stock craze. It’s called the GameStop (GME-USD) token and bears no actual affiliation with the company, with the symbol $GME and is minted on Solana (SOL-USD).
“Born on the Solana blockchain, known for its lightning-fast transactions and pioneering spirit, the $GME Memecoin embodies the essence of that historic rebellion against financial titans, channeling the raw energy and incredible support that defined the GameStop mania,” reads the description on wallstsucks.lol, the official website of the meme coin.
The New GameStop Meme Coin Is Trying to Recreate GME Stock’s 2021 Surge
As seen with other meme coins, like Dogecoin (DOGE-USD) and Shiba Inu (SHIB-USD), retail participants like to cling to ideas born from memes. Within 24 hours of its debut, the GME token grew to a market capitalization of $14 million. According to Benzinga, the coin then plunged by over 85% after its X (formerly Twitter) account was banned. $GME is currently priced in the $0.004 range with a market capitalization of just below $30 million. It’s up by over 200% during the past 24 hours.
It’s quite obvious that $GME shouldn’t be considered a serious investment. It has absolutely nothing to back its value and has no use cases. That doesn’t mean you can’t make money from it, although the risks of a sudden price decline are very real.
It will be interesting to see how the coin fares over the coming weeks, although, like most meme coins, the journey will likely end in tears.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
