Cryptocurrency GameStop Coin grew by a record 500% per day

Note: not investment advice!

The cryptocurrency called GameStop Coin (GME), created on the basis of the BNB Chain, has grown by more than 500% over the past day after GameStop Corp. announced its intention to raise $ 1.75 billion in investments through a private placement of convertible bonds. Despite the fact that the token is in no way related to GameStop itself, investors and traders rushed to invest, using the wave of interest provoked by the official news.

The 532% growth of GameStop Coin occurred against the backdrop of a decline in most major cryptocurrencies: Bitcoin lost 1.21% and Dogecoin — 2.3%. In addition to the price, the volume of trading in the token has also increased significantly — by 53%, which indicates a sharp increase in speculative demand.

Meanwhile, the real GameStop company announced that the proceeds from the bonds will be used for investments in line with its financial strategy. Among the latest moves is the transition to a bitcoin strategy for the corporate treasury: last month, the company purchased 4,700 BTC worth more than $ 512 million.

Despite the interest in its namesake cryptocurrency, GameStop shares slipped 11.2% in the after-hours session after falling 5.31% during the main trading. Investors reacted negatively to the company’s poor financial results, with revenue for the first quarter amounting to $ 732.4 million, which is below analysts' expectations.

Experts warn that investing in meme coins, such as GameStop Coin, is extremely speculative and risky. Such assets rarely have a real economic basis, and their value is often determined by social trends, online sentiment, and instant newsworthy events.

No Worries strongly advises readers not to invest in dubious crypto projects and little-known digital assets!