A cryptocurrency trader has sold his $GME meme token, whose price skyrocketed on the Solana blockchain due to the new hype surrounding GameStop earlier this month. The trader lost more than $122,000 due to the hasty sale.
According to data from analytics service Lookonchain, the trader purchased 1,668 #SOL worth of #meme tokens with the ticker GME, identical to GameStop's ticker, on popular #cryptocurrency exchange KuCoin. However, the very next day, facing a sharp price drop, he sold his tokens for only 465.7 SOL (about $75,000), recording a loss of 1,202 SOL.
This sale follows the recent hype in the meme #token market, sparked by the return to social media of Keith Gill, a well-known trader who played a central role in the 2021 movement around GameStop. Keith Gill, known by the nicknames RoaringKitty and DFV, paused on social media for three years following his congressional testimony, and his return drew widespread attention.
Gill's renewed activism led to a surge in GameStop (NYSE: GME)'s stock price as an army of retail traders followed suit, prompting widespread media coverage. A similar situation occurred two years ago, when GameStop's stock price rally led to the creation of a TV series and movie on Netflix, as well as significant financial exposure.
GameStop's stock price surged from just under $17.5 to a high of $55 before correcting to $27.6 at the time of writing.
Movie theater AMC Entertainment (NYSE: AMC) also experienced a similar rise, along with lesser-known cryptocurrencies related to Roaring Kitty and GameStop. This case serves as a reminder of the unpredictability of the market and how quickly things can change, even for experienced traders.
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