According to CoinDesk, the GameStop (GME) stock rally experienced a second day of decline on Monday, resulting in a 12% drop following a 40% fall on Friday. This downward trend has negatively impacted several meme tokens that typically reflect the stock's movements. GME closed Monday's trading session at $24.89, marking a 62% decrease from its two-year high of $61 last Thursday. The Solana-based meme token GME, which mimics the company, also fell by 25%, reversing a more than 200% rally from the previous week.
Related tokens such as Roaring Kitty (KITTY) and various cat-themed tokens, which have historically moved in tandem with GME stock, experienced an average loss of at least 10%, as per data tracked by CoinGecko. Dog-themed tokens including doge (DOGE), shiba inu (SHIB), and floki (FLOKI) also saw a decline, with losses ranging from 4% to 10%.
The GME stock has seen significant fluctuations since late May, largely due to the return of retail trader and GME supporter Keith Gill. Known by his online aliases @TheRoaring Kitty and “DeepF*uckingValue”, Gill was a central figure in the stock's short squeeze rally in 2021. Last week, Gill revealed a $580 million position in GME equity and options holdings, which temporarily boosted the stock's prices and put him on track for a potential billion-dollar exposure position.
However, these gains were quickly negated after the company announced plans to sell up to 75 million shares, just days after it raised $933 million through the sale of 45 million shares. The company also reported a decrease in quarterly sales, which further dampened investor sentiment.