- Roaring Kitty was sued, causing the memecoin linked to him, called ROAR, to drop in price.
- General interest in the CHEWY memecoin increased dramatically following Roaring Kitty’s recent online behavior.
Stock trader Keith Gill, who rose to fame during the 2021 GameStop short squeeze, is currently facing securities fraud charges.
A class action lawsuit filed in June 2024 accuses Gill of manipulating GameStop’s stock price through a series of social media posts made between May and June. These messages reportedly caused significant volatility in the stock price.
GameStop isn’t stopping
The submission describes a calculated strategy. On May 12, 2024, Gill began accumulating GameStop call options on E*Trade at low prices, positioning himself to profit from a potential price increase.
The next day, he strategically ended a nearly three-year silence on Reddit, generating renewed interest in the stock and pushing its price higher.
To further fuel the fire, on June 2, Gill publicly disclosed his significant holdings in GameStop, including a huge number of call options and shares.
Some argue that this announcement was a calculated move to inflate the stock price even further. Gill took advantage of the surge and exercised all his call options by June 13, profiting handsomely.
He then reportedly used those profits to further increase his stake in the company by acquiring an additional 4 million shares. It is important to remember that these are just allegations in a lawsuit. Gill maintains his innocence and has not been found guilty of any wrongdoing.
Due to these factors, the price of ROAR, a memecoin associated with Roaring Kitty, fell by 8%.
However, there were also other coins that were affected by Roaring Kitty’s behavior.
Rising suspicions
Recently, Gill disclosed in a Schedule 13G filing that as an individual investor he owns 9,001,000 shares of Chewy’s Class A common stock. To clear up any misunderstandings, Gill clarifies in the filing that he is “not a cat.”
Source: SEC
Moreover, he also tweeted an image of an animated dog.
This submission and tweet also grew the hype surrounding the meme token CHEWY. This resulted in a price increase for the token. Some market speculators believe that this Roaring Kitty may have purchased some of the CHEWY memecoin prior to tweeting.
Only time will tell what happens next with the tokens associated with this saga.
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