Memecoins
GameStop extends losses to 60%, Solana Meme GME plunges 25% as Meme Token rally fades
The controversial rebound in GameStop (GME) shares had its second day of reversal on Monday, ending the U.S. trading session down 12% after a drop of 40% on Friday This has weighed down some meme tokens that tend to mirror the stock’s movements.
GME ended Monday at $24.89, down 62% from last Thursday’s two-year high of $61. Elsewhere, Solana-based meme token GME, which parodies the company, slipped 25%, reversing a rally of more than 200% over the past seven days.
Related tokens like Roaring Kitty (KITTY) and some cat-themed tokens, which previously traded alongside GME stock, lost on average at least 10%, according to data tracked by CoinGecko.
Dog-themed tokens doge (DOGE), shiba inu (SHIB), and floki (FLOKI) pared last week’s gains, from 4% to 10%.
The stock has moved wildly since late May due to the apparent return of retail trader and GME bull Keith Gill for the first time since 2021. Gill, known by his aliases @TheRoaring Kitty and “DeepF*uckingValue,” was a key figure in the evolution of the title. short-term rally in 2021.
Gill introduced a $580 million position in GME shares and options last week, which sent the stock price soaring and put him on track to reach a potential exposure position of a billion dollars.
However, the gains were erased after the company announced it would sell up to 75 million shares, days after making $933 million by selling 45 million shares. It also reported a drop in quarterly sales, dampening investor confidence.