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Meme Stocks and Tokens Plunge as GameStop Rally Fizzles Out

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Meme stock and token frenzy fades as GameStop’s downward trend resumes.

Meme Stocks and Tokens Plunge as GameStop Rally Fizzles Out img
Photo: Kanchanara/Unsplash

A sharp sell-off hit the meme sector on Monday as GameStop (GME) continued its downward spiral. The controversial stock price fell 12% after a hefty 40% drop on Friday, extending its losses to a total of 62% from a two-year high just last week.

This downturn heavily impacted meme tokens that often move in tandem with GME. The Solana-based parody token GME plummeted 25%, reversing its impressive 200% rally from the previous week. Similarly, other meme tokens like Roaring Kitty (KITTY) and cat-themed cryptocurrencies witnessed average losses of at least 10%.

Even dog-themed meme coins like dogecoin (DOGE), shiba inu (SHIB), and floki (FLOKI) weren’t spared, with their gains from the past week shrinking by 4% to 10%.

The recent market gyrations stem from the return of retail investor favorite Keith Gill, also known as “DeepF*uckingValue” and “@TheRoaringKitty”. Gill’s reappearance and reported $580 million GME position initially fueled a surge in the stock price. However, this enthusiasm waned after GameStop announced plans to sell additional shares, following a previous sale that raised $933 million. The company also reported disappointing quarterly sales figures, further dampening investor confidence.

The meme stock and token frenzy appears to be cooling down as the realities of GameStop’s financial health set in.tunesharemore_vert

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We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.

ABOUT THE AUTHOR

Alex Rousseau is a French journalist and analyst with a deep understanding of the intersection between finance, technology, and security. His expertise spans across cryptocurrency, trading strategies, tech protocols, cybersecurity threats, artificial intelligence applications, and cloud computing solutions. He is passionate about demystifying complex technological concepts and their impact on the future of finance.

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