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Tuesday, June 11, 2024
HomeCryptoMemecoin sector sees sharp sell-off as GameStop losses reach 60%

Memecoin sector sees sharp sell-off as GameStop losses reach 60%

The controversial GameStop (GME) stock rally saw its second day of reversal on June 10, ending the US session down 12% after a 40% drop on Friday. This has weighed on some memecoins that tend to mirror stock movements.

GME ended Monday’s trading at $24.89, down 62% from a two-year high of $61 last Thursday.

Meanwhile, the Solana-based memecoin GME fell 25%, reversing a gain of more than 200% in the past seven days.

Related tokens like Roaring Kitty (KITTY) and several cat-themed tokens, which had previously rallied along with GME stock, have lost an average of 10%.

Source: Coingecko

Dog-themed tokens Dogecoin (DOGE), Shiba inu (SHIB) and Floki (FLOKI) pared gains from last week, falling from 4% to 10%.

The stock has been volatile since late May thanks to the apparent return of meme stock KOL Keith Gill for the first time since 2021. Gill, known by his nicknames Roaring Kitty and “DeepF*uckingValue,” was a key figure in the stock’s massive Short squeeze* rally in 2021.

Gill revealed a $580 million GME stock and options portfolio last week, boosting the stock price and giving the KOL the potential to become a billionaire.

However, the gains were erased after GameStop said it would sell up to 75 million shares, days after making $933 million by selling 45 million shares. The company also announced a decline in quarterly revenue – affecting investor sentiment.

Annie

According to FXStreet

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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