Roaring Kitty’s Cryptic Return Spurs Chewy Memecoin Rally, But Is He Dropping It?

Keith Gill, famously known as “Roaring Kitty” and a key figure in the GameStop short squeeze, has returned to social media after a two-month break with a cryptic post that caused a dog-themed memecoin, Chewy (CHWY), to surge nearly 30%. However, his post may suggest that he’s stepping away from the Chewy project, rather than endorsing it.

The Memecoin Surge: Chewy Jumps 28%

Gill’s return to X (formerly Twitter) on Sept. 6 was accompanied by an image that sparked speculation among traders. His post, which featured the logo of the Solana-based memecoin Chewy, coincided with a 28% price rally, pushing the token above $0.011, according to CoinMarketCap data.

Memecoins like Chewy generally lack technical utility and thrive on social sentiment. Gill’s post, despite being cryptic, was enough to spur excitement among memecoin traders, as figures like him are often seen as indicators of market moves. This mirrors the volatility-driven nature of memecoin trading, where sentiment often outweighs fundamental analysis.

A Cryptic Message: Is Roaring Kitty Leaving Chewy?

Despite the Chewy token’s rally, Gill’s post seems to suggest a departure from Chewy rather than an endorsement. The image he shared was a reference to the animated movie Toy Story, where the character Andy drops his favorite toy, Woody. In this context, the Woody figure was replaced with the Chewy token logo, hinting that Gill may be symbolically "dropping" the project. This has led to widespread speculation that he might be distancing himself from his involvement with Chewy.

Earlier in July, Gill revealed a 6.6% ownership stake in Chewy, the online retailer for pet products, which likely inspired the creation of various Chewy-related meme tokens. However, the cryptic nature of his latest post has left the community wondering whether he’s stepping away from the token or simply having fun with his followers.

Impact on GameStop: A Possible Resurgence?

While Gill’s post focused on Chewy, some speculate that it could also be a signal of renewed interest in GameStop (GME). Notably, shortly after Gill’s post, an investor purchased $2 million worth of GameStop shares, according to market tracker Unusual Whales. This purchase has fueled further speculation about a potential resurgence of GameStop, drawing comparisons to the massive short squeeze of 2021 that saw GME stock skyrocket by over 1,000%.

Gill’s association with GameStop is well-known, having played a central role in the original stock surge. Some traders believe that his return to social media might signal another significant market movement involving GameStop, especially with this large stock purchase happening shortly after his post.

Legal Troubles: A Dismissed Lawsuit

Gill's recent activities also come in the wake of legal challenges. In June, a GameStop investor filed a lawsuit accusing Gill of securities fraud, claiming that he had failed to disclose plans to sell 120,000 call options before their expiration date. However, the lawsuit was dropped after just three days, allowing Gill to continue his market activity without further legal hindrances.

Conclusion: What’s Next for Chewy and GameStop?

Keith Gill’s enigmatic return has once again stirred the waters of both the memecoin and stock markets. While the surge in Chewy’s price reflects the influence that Gill still holds, his cryptic message has raised questions about whether he is distancing himself from the project. Meanwhile, the GameStop saga continues, with Gill’s influence potentially signaling more moves in the stock’s price.

As traders eagerly watch his next steps, one thing remains clear: Roaring Kitty’s social media posts continue to have a powerful impact on the markets, whether in stocks or crypto.