- Roaring Kitty got sued causing memecoin associated with him, called ROAR to decline in price.
- Overall interest in the CHEWY memecoin surged after Roaring Kitty’s recent online behavior.
Stock trader Keith Gill, who rose to prominence during the 2021 GameStop short squeeze, is currently facing allegations of securities fraud.
A class-action lawsuit filed in June 2024 accuses Gill of manipulating the stock price of GameStop through a series of social media posts made between May and June. These posts allegedly caused significant volatility in the stock’s price.
GameStop won’t stop
The filing details a calculated strategy. On May 12, 2024, Gill began accumulating GameStop call options on E*Trade at low prices, positioning himself to benefit from a potential price increase.
The very next day, he strategically ended a nearly three-year silence on Reddit, sparking renewed interest in the stock and propelling its price upwards.
Further fueling the fire, Gill publicly disclosed his significant holdings in GameStop on June 2nd, including a massive number of call options and shares.
This announcement, some argue, was a calculated move to inflate the stock price even further. Capitalizing on the surge, Gill exercised all his call options by June 13th, profiting handsomely.
He then reportedly used those profits to further increase his stake in the company by acquiring over 4 million more shares. It’s important to remember that these are just accusations 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 other coins that were impacted by Roaring Kitty’s behavior as well.
Rising suspicions
Recently in a Schedule 13G filing Gill revealed that as an individual investor, he owns 9,001,000 shares of Chewy’s Class A common stock. In the filing, to remove any misunderstandings, Gill clarifies that he is “not a cat.”
Source: SEC
Moreover, he also tweeted an image of an animated dog.
Due to this filing and tweet, hype around the meme token CHEWY also grew. This resulted in a surge in price for the token. Some market speculators believe that prior to tweeting this Roaring Kitty may have bought a chunk of the CHEWY memecoin.
Only time will tell what happens next with the tokens associated with this saga.
Source: X
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