Meme Sector Sees Sharp Sell-off as GameStop Losses Extend to 60%

The controversial GameStop (GME) stock rally saw its second day of reversing on Monday, ending the U.S. trading session down 12% after a 40% drop on Friday This weighed down some meme tokens that tend to mirror the stock’s movements.
GME ended Monday trading at $24.89, down 62% from a two-year high of $61 last Thursday. Elsewhere, the Solana-based meme token GME, which parodies the company, slid 25%, reversing a more than 200% rally from the past seven days.
Related tokens like Roaring Kitty (KITTY) and some cat-themed tokens, which previously moved alongside GME stock, lost an average of at least 10%, according to data tracked by CoinGecko.
Dog-themed tokens doge (DOGE), shiba inu (SHIB) and floki (FLOKI) pared gains from the last week, falling from 4% to 10%.
The stock had moved wildly since late May on the apparent return of retail trader and GME bull Keith Gill for the first time since 2021. Gill, known by his @TheRoaring Kitty and “DeepF*uckingValue” aliases, was a key figure in the stock’s short squeeze rally in 2021.
Gill flashed a $580 million position of GME equity and options holdings last week, boosting the stock’s prices and putting him on track to a potential billion-dollar exposure position.
However, gains were erased after the company said it would sell up to 75 million shares, days after it made $933 million by selling 45 million shares. It also announced a drop in quarterly sales – dampening investor sentiment.
Edited by Omkar Godbole.
Disclosure
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.
Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.