Meme Sector Sees Sharp Selloff as GameStop Losses Extend to 60%

As a researcher with experience in the cryptocurrency and stock markets, I’ve witnessed firsthand the volatility and unpredictability of meme stocks and tokens. The recent double-digit losses in GameStop (GME) have cast a long shadow over the meme coin market, with tokens like GME and KITTY suffering significant drops.The contentious GameStop (GME) stock rally experienced its second day of decline on Monday, concluding the U.S. trading session with a 12% decrease following a 40% drop on Friday. This downturn impacted certain meme tokens that typically mimic the stock’s price fluctuations.

The price of GME stock closed at $24.89 on Monday, marking a significant decrease of 62% from its two-year peak of $61, which was reached just a few days prior on Thursday. Meanwhile, the Solana-based meme token mimicking GME experienced a decline of 25%, following a dramatic surge of over 200% during the past week.

According to CoinGecko’s data, the value of related cryptocurrencies such as Roaring Kitty (KITTY) and other cat-themed tokens dropped an average of 10% or more, having previously followed the price trend of GME stock.

As a researcher studying the cryptocurrency market, I’ve observed that the value of dog-themed tokens like DOGE, SHIB, and FLOKI experienced a decline over the past week. Specifically, these tokens dropped by approximately 4% to 10% in value.

Since late May, the stock’s value had fluctuated significantly due to the reemergence of retail trader and GME supporter Keith Gill. A significant player in the 2021 stock surge with his aliases @TheRoaringKitty and “DeepF*uckingValue,” Gill had been absent until then.

Last week, Gill revealed his substantial investment of $580 million in GME‘s equities and options, causing a surge in the stock’s value and bringing him closer to amassing a billion-dollar exposure towards this particular stock.