Chewy Memecoin Surges Amid Roaring Kitty Legal Battle Over GameStop Trades

• Roaring Kitty faces legal challenges which impacted the value of associated memecoin ROAR.
• Despite the legal issues, public interest in the CHEWY memecoin surged following Gill’s recent activities.
• Keith Gill, also known as Roaring Kitty, is embroiled in a class-action lawsuit related to alleged market manipulation.

Roaring Kitty embroiled in legal drama; memecoins ROAR and CHEWY see fluctuating interest amid controversy.

Roaring Kitty’s GameStop Controversy

Renowned stock trader Keith Gill, known for his role in the 2021 GameStop short squeeze, is currently under scrutiny due to allegations of securities fraud. The accusations suggest Gill’s social media activity between May and June 2024 prompted significant volatility in GameStop’s stock price. This led to a class-action lawsuit against him, combining accusations of intentional market manipulation.

Details of the Alleged Scheme

The legal documents indicate that on May 12, 2024, Gill began purchasing GameStop call options on E*Trade at attractively low prices in anticipation of a price hike. The subsequent day, he broke his nearly three-year hiatus on Reddit, stirring renewed interest in GameStop. On June 2nd, Gill publicly disclosed his substantial positions in the stock, showcasing his extensive holdings, including numerous call options and shares. Critics argue this was a calculated attempt to drive the stock price higher, which culminated in Gill exercising all his call options by June 13th amidst a price surge. Using the profits, Gill reportedly increased his stake in GameStop further, purchasing over 4 million additional shares. It must be noted that these allegations remain subject to Gill’s defense, as he has not been found guilty of any misdeeds yet.

Memecoin Fallout: ROAR and CHEWY

The fallout from the lawsuit significantly impacted the price of ROAR, a memecoin linked to Roaring Kitty, causing it to drop by 8%. However, the effects on other memecoins, such as CHEWY, were mixed. Recently, Gill disclosed in a Schedule 13G filing his ownership of 9,001,000 shares of Chewy’s Class A common stock, and emphasized his stance as an individual investor distinct from his online persona, humorously noting, “I am not a cat.”

Surge in CHEWY Memecoin

Following Gill’s filing and a playful tweet featuring an animated dog, anticipation around the CHEWY token amplified, leading to a notable price increase. Market speculators theorize that Roaring Kitty might have acquired CHEWY memecoins in anticipation of the social media buzz, which then drove the price surge. However, only time will reveal the future trajectories of these memecoins amid ongoing controversy.

Conclusion

In summary, the legal predicament surrounding Roaring Kitty has had a ripple effect on associated digital assets, with ROAR experiencing a dip, while CHEWY witnessed a surge in interest and value. Investors and market watchers remain keenly observant of the unfolding developments and their potential implications on both the stock market and the world of cryptocurrency.