Key facts:
This token “lives” on the Solana network, which has become a hotbed of memecoins.
GME, like all memecoins, is an asset without any fundamentals or real utility.
GameStop, a chain of video game and console stores in the United States, is just days away from announcing its financial results for the second quarter of 2024 and there are expectations in the markets. A positive report could have a direct impact on the firm’s shares (GME) and on the cryptocurrency that bears the same name.
As CriptoNoticias already reported, GME is a memecoin of the Solana network that It is not really linked to the action of the video game sales company. It is simply a digital token that was baptized with the same name and that “embodies the essence of that historic rebellion against the financial titans, channeling the raw energy and incredible support that defined the GameStop mania,” as it is stated. describes on their website.
It is worth remembering that, in 2021, Keith Gill, better known as Roaring Kitty, led a campaign of traders through social networks against institutional investors who were betting on the disappearance of this company.
The moves generated a bullish momentum in GameStop (GME) shares, leading to huge losses for hedge funds that bet against the firm. A similar situation occurred months ago, when assets had a short-lived rally for similar reasons.
The following graph of TradingView We can see the impact that the Roaring Kitty campaign had on the GME stock price. It currently stands at $24.
Clark Schultz, journalist and editor of the financial analysis platform Seeking Alpha, advancement that estimates indicate that GameStop had revenue of $857 million and an earnings per share (EPS) loss of $0.09. “GameStop has reported losses per share in eight of the last 10 quarters,” Schultz notes.
In this context, there is a high trading volume in GME before the earnings report is published. In this regard, the financial journalist points out that they have risen by 16% in the last six weeks, which suggests market interest in the firm’s quarterly report.
What can happen to the price of the GME token?
Although they are not linked, The GME token price has shown correlation with the stockIn fact, in the last six weeks the price of the memecoin has risen by more than 30%.
At the time of writing, the price of the GME cryptocurrency is $0.004733.
For SantinoCripto, recognized analyst Cryptocurrency market cap X says the memecoin “will go to $0.1 in this Bitcoin (BTC) bull market,” adding: “As soon as RoaringKitty wants, this memecoin will explode and multiply its value by 20.”
The specialist mentions what happened in mid-May 2024, when the GameStop memecoin reached its all-time high (ATH) after the reappearance of Roaring Kittyon his personal X account. At that time, the stock also skyrocketed.
Meanwhile, on June 2, Gill revealed his GameStop options positions on the social platform Reddit. Both the GME token and several memecoins saw a notable bullish momentum.
As CriptoNoticias has reported, meme cryptocurrencies are tributes to a pet, famous person, political figure or a specific event, as was the case with GameStop. Most of them are used for financial speculation, so they are exposed to large price fluctuations.
According to the user From X @unusual_whales, “GameStop dark pool orders are being executed in sizes of 5,000+ units, similar to those seen in May when GME rallied significantly.”
Among traders, “dark pool” refers to a type of private market where large investors can make stock transactions outside of traditional public exchanges. These trades are executed privately and are not immediately reported on the public market.
The moves could generate bullish momentum and, if the trend repeats itself, also for the meme cryptocurrency GME.
Not everything is rosy for GME
For its part, Wedbush Securities, a financial analysis firm, wait GameStop is expected to post results in line with its recent trends and report a slight improvement compared to recent quarters. However, it is expected that the Texas-based company will cannot overcome an almost insurmountable barrier for “its planned return to growth.”
In this regard, Josh Arnold, head of the Timely Trader investment group, warns: “Despite some margin improvements and a strong balance sheet, the core business model remains flawed and retro store concepts are unlikely to drive significant growth.” He further says:
“GameStop stock has seen a recent surge in value. However, given the high short interest and the proximity of an earnings report, it might be prudent to consider taking profits before facing the potential volatility that could arise.”
Josh Arnold, head of investment group Timely Trader.
Analysts agree that the main challenge that the company must face to show positive balances is to implement a plan so that GameStop’s physical stores can survive in an era dominated by digital commerce“There is also the question of what GameStop’s (GME) master plan is, as the company has not given any clear indication of a new strategy involving the billions of dollars in cash it has sitting around,” Schultz explains.
