Meme Sector Sees Sharp Selloff as GameStop Losses Hit 60%

  • Double-digit losses at GameStop weigh on meme coins.

  • Meme tokens GME and KITTY drop 25% and 10%, respectively.

Controversial rally in GameStop (GME) shares had a second day of reversal on Monday, ending the US trading session down 12% after Friday’s 40% decline. This took a toll on some meme tokens, which tend to track stock movements.

GME ended Monday trading at $24.89, down 62% from a two-year high of $61 last Thursday. Elsewhere, Solana-based meme token GME, which parodies the company, fell 25%, reversing a gain of more than 200% in the last seven days.

According to data tracked by CoinGecko, related tokens such as Roaring Kitty (KITTY) and some cat-themed tokens that previously traded with GME shares have lost at least 10% on average.

Dog-themed tokens doge (DOGE), shiba inu (SHIB), and floki (FLOKI) pared last week’s gains, falling from 4% to 10%.

The stock has surged since late May following the apparent return of retail trader and GME bull Keith Gill for the first time since 2021. Gill, known by his nicknames @TheRoaring Kitty and “DeepF*uckingValue”, was a key figure in influencing the stock’s short rally in 2021 r.

Last week, Gill showed a $580 million position in GME stocks and options, pushing up stock prices and pointing him toward a potential billion-dollar exposure.

However, the gains were wiped out after the company announced it would sell up to 75 million shares, days after it made $933 million on the sale of 45 million shares. He also announced a decline in quarterly sales, which worsened investor sentiment.