Renowned billionaire investor Ryan Cohen has been named the fresh Chief Executive Officer (CEO) of GameStop, a prominent brick-and-mortar video game retailer in the United States. This decision could potentially influence the trajectory of Dogecoin, as there have been noticeable correlations between GameStop’s stock and Dogecoin’s price.
Cohen, who previously held the position of Executive Chairman at GameStop since January 2022 while also maintaining the largest ownership stake, steps into this leadership role amid analyst speculation that the company’s board is striving to revitalize the fortunes of this publicly traded entity.
GameStop-Friendly Billionaire Assumes CEO Position
In this capacity, Cohen assumes the roles of President, Chief Executive Officer, and Chairman at GameStop, signifying a comprehensive effort to revamp and potentially rejuvenate the company’s leadership structure. Despite taking on multiple key roles, reports indicate that the billionaire will not be drawing a salary.
In response to the announcement of Cohen’s appointment, GameStop’s stock experienced a remarkable 10% surge. Analysts interpret this surge as a vote of confidence in the experienced investor’s abilities and a genuine commitment to catalyzing a turnaround, especially in light of the challenges faced by the company in 2022 and the evolving retail landscape that has witnessed a decline in brick-and-mortar sales.
This appointment bodes well for GameStop as Cohen ranks among the company’s largest shareholders. His aggressive accumulation of shares between September and December 2020 reflects his public support for a stock that hedge funds had overlooked, with many of them betting on the video game retailer’s bankruptcy. The “short squeeze” phenomenon in January 2021 catapulted GameStop’s stock price by a staggering 1,500%, attracting retail investors and driving the stock to approximately $81.
Could Dogecoin Replicate GameStop’s 2021 Rally?
The rapid surge of GameStop in January, driven by FOMO and retail investors flocking to a “meme stock,” shares striking similarities with the sudden upsurge of Dogecoin during the initial months of 2021. At its zenith, Dogecoin reached staggering heights, peaking at $0.78, with backing from Elon Musk, the world’s wealthiest entrepreneur, propelling the cryptocurrency to unprecedented levels.
The CEO of X publicly endorsed DOGE, going as far as making an appearance on Sunday Night Live (SNL) as the “Doge Master.”
Further Reading: Maker (MKR) Surges to $1,500 with a 15% Rally – Is the Momentum Sustainable?
In addition to Elon Musk’s influence, Dogecoin’s distinction as the pioneering meme cryptocurrency, coupled with its alignment with the broader trend of meme stocks surging in early 2021, largely driven by online communities and social media, contributed to the buoyancy of DOGE prices.
However, DOGE prices have since experienced a significant decline, plummeting by over 80% as bearish sentiment prevailed, effectively erasing substantial market valuations for the project. Nevertheless, proponents of Dogecoin remain optimistic, anticipating a potential resurgence of the meme coin in the forthcoming trading sessions.
The future trajectory of Elon Musk’s frequent tweets about DOGE remains uncertain. The billionaire currently faces a lawsuit in New York, where he is accused of promoting Dogecoin as a “get-rich-quick” scheme. The lawsuit alleges that Musk, along with Tesla and SpaceX, participated in a “racketeering conspiracy” to endorse DOGE.