Billionaire investor Ryan Cohen, the Executive Chairman of GameStop since January 2022 and the company’s largest shareholder, has been appointed as its new CEO, potentially impacting Dogecoin as a result of a perceived correlation between GameStop’s stock and Dogecoin’s price.
A Strategic Move for GameStop
Cohen’s appointment as President, Chief Executive, and Chairman of GameStop marks a significant shift in the company’s leadership, as it aims to address its challenges and adapt to a changing landscape in brick-and-mortar retail. Importantly, Cohen will not receive a salary for his new roles.
Cohen’s Previous Role in GameStop
Cohen’s association with GameStop dates back to September 2020, when he began accumulating a significant stake in the company, becoming one of its largest shareholders by December 2020. He played a pivotal role in supporting GameStop’s stock during the “short squeeze” in January 2021, which resulted in a remarkable 1,500% surge in its prices, reaching approximately $81.
The rapid rise of GameStop’s stock in early 2021 shares similarities with Dogecoin’s surge during the first half of the same year. Dogecoin’s prices soared, reaching highs of $0.78, primarily fueled by support from Elon Musk and social media-driven enthusiasm. Musk famously referred to himself as the “Doge Master” during his appearance on Saturday Night Live (SNL).
Dogecoin’s Subsequent Correction
While Dogecoin experienced a significant rally, its prices later corrected, dropping by over 80% as bearish sentiment took hold. However, supporters of Dogecoin remain optimistic about its future performance.
The extent to which Elon Musk continues to promote Dogecoin through his tweets and statements remains uncertain, as he is currently facing a lawsuit in New York alleging that he promoted Dogecoin as a “get-rich-quick” scheme. The lawsuit accuses Musk, Tesla, and SpaceX of involvement in a “racketeering conspiracy” to support Dogecoin.