Solana meme coins GME, AMC suffer brief decline after GameStop releases earnings ahead of schedule
- GME and AMC meme coins have experienced double-digit losses in the past few hours.
- GameStop's Q1 earnings report shows declining sales and increased losses.
- Meme coins may surge over the weekend following Roaring Kitty's return to YouTube.
Solana meme coins GME and AMC crashed by 27% and 36%, respectively, over several hours on Friday after GameStop Corp released lackluster earnings results and announced plans to sell up to 75 million shares.
GME and AMC bulls pause buying pressure
Two Solana meme coins, GME and AMC, which share the same tickers with videogame retailer GameStop and the AMC movie theater chain stocks but have no affiliations with the individual companies, declined briefly in the past few hours.
Also read: Gaming tokens set for rally after Roaring Kitty ignites a surge in GameStop stock
Investors appear to have slightly slowed down their buying pressure on these meme coins after GameStop released Q1 earnings on Friday that underperformed analysts' expectations, recording poor sales and increased losses. The company's plan to sell an additional 75 million shares in the market, coupled with its poor earnings, has caused market participants to raise eyebrows.
The GME meme token began its meteoric rise on May 12 after Keith Gill, aka Roaring Kitty, returned to social media with a series of cryptic posts on X. Within three days, the token skyrocketed by over 3,700% before plummeting after Gill briefly went silent.
Read more: GameStop shorts lose over $1 billion in mark-to-market losses on Monday amid meme-stocks demand
However, the GME token began another leg up on Monday when Gill revealed he had a position of 5 million GameStop shares and 120,000 $20 strike call options worth $260 million at the time. Following an accompanying rise in GameStop shares, Gill's position grew to about $583 million, according to a Reddit post on Thursday.
The post triggered a further increase in the GME meme coin, which went on to set a new all-time high on Thursday after more than 500% growth in the past five days.
The Solana AMC meme coin also joined the rally, surging over 300% since Monday.
Also read: Top meme coins post gains following increased social activity amid GameStop pump
Gill has scheduled a YouTube livestream for Friday, an event that may spark a further rally across the meme coin market.
Keith Gill is popular for his role in the GameStop short squeeze from late 2020 into Q1 2021, which triggered a meme coin frenzy during that period.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
