ith an X post featuring a cryptic message and an image from "Toy Story," Keith Gill, better known by his Roaring Kitty nickname, did the unexpected and made a return to social media after more than two months away.
Speculation mounted September 6, 2024, over the future involvement of Gill with Chewy and even a possible second wind for GameStop stock as the Solana-based Chewy memecoin reached new highs.
Chewy's Rally
After Gill's post, the price of Chewy jumped almost 28% against Solana, to over $0.011. The surge is in part because memecoins, like Chewy, represent no fundamental technical utility.
An indirect endorsement by Gill - even through an oblique post - can be a strong signal to memecoin traders who typically rely on social trends rather than fundamental analysis.
In July 2024, Gill had disclosed a 6.6% stake in Chewy, an online retailer of pet food and other pet-related products. The revelation probably encouraged several issues of Chewy-related meme tokens and made Gill's post all the more potent for the CHWY community.
Dropping or Endorsing?
Despite the rally, Gill's post, in no words, appeared to indicate he may abandon the Chewy company rather than be an endorser for it.
The picture that Gill posted is a scene from "Toy Story" where Andy lets go of his favorite toy, "Woody." In Gill's posting, he has swapped out "Woody" for the logo of the Chewy token. That would hint he has abandoned his role at Chewy.
Gill's post also fueled rumors of a GameStop short squeeze. The same day, an unknown investor acquired $2 million in GameStop shares, according to market tracker Unusual Whales on September 6, 2024. This move further fueled speculations of a possible return of the meme stock craze.
Past Lawsuit, GameStop Short Squeeze
In late June 2024, a GameStop investor sued Gill based on an alleged case of security fraud. He said he had never shown an intention to let his followers know that he would sell 120,000 call options before he reached the expiration date. It was only three days later that the lawsuit was dropped.
The first short squeeze in GameStop, back in 2021, surged the stock up over 1,000% in just one month-a sure sign of how strong Gill's social media activity can influence meme stock markets.
While Gill's cryptic post sent Chewy's price to orbit, what that actually means remains anyone's guess. Is he bailing on Chewy, or just suggesting a different tack? The post has also triggered some loose speculation that GameStop could join the resurgence, further evidence of how much power Gill still holds over the meme stock market.
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