Trader on Solana transforms 53500 into 286 million within five months
GameStop stock (NYSE: GME) has seen a 165% increase since the beginning of the year, and the world of cryptocurrency has embraced this excitement with the creation of a GME memecoin. A trader in Solana DeFi has managed to earn $2.8 million in unrealized profits by investing in this purely speculative meme token.
The account ‘7eTbufa’ bought the GME token on January 29 and April 3 at low prices. Throughout the year, the trader accumulated 90.23 million GME in Solana and held onto them patiently despite periods of low trading volume.
This strategy has proven to be successful, as the holdings were valued at $2.86 million when Lookonchain reported on the achievement. Specifically, GME was trading at $0.03120 on the decentralized exchange Raydium, while Solana was trading at $171.
Despite this success, the trader may encounter liquidity challenges, and there is no guarantee that they will be able to cash out their profits with the Solana version of GME, which holds no real value or connection to the GameStop stock.
Meme coins like Solana’s GME have gained popularity among cryptocurrency enthusiasts since May 13. Interest peaked when renowned meme trader Keith Gill, also known as Roaring Kitty, made a comeback on social media platforms. Gill was the catalyst behind the GameStop stock short squeeze in 2021.
Although Roaring Kitty’s Reddit account revealed a $180 million position in GameStop on June 3, boosting interest in meme assets once again, it is important to note that trading meme coins or meme stocks can be extremely risky. The potential for financial ruin in this asset class is significant, with many traders losing money rather than making gains.
Experts caution against falling into “The Greater Fool” theory trap, reminiscent of financial bubbles, where latecomers are left with substantial losses when the market frenzy subsides. It serves as a reminder that investing in meme assets is highly speculative and carries inherent risks.
Disclaimer: The information provided in this article is not intended as investment advice. Investment in such speculative assets carries risks, and individuals should be aware that their capital is at risk when making investment decisions.
