A cryptocurrency trader has turned an initial investment of $155,000 into a $1.16 million portfolio in two days. The trades occurred on Solana (SOL), speculating on the meme coins AMC and GME amid Roaring Kitty’s return.
Lookonchain reported the anonymous trader’s nearly 650% gains in a post on X on May 15. The crypto trader allocated $61,000 to buy 27.58 million AMC and $94,000 for 30.78 million GME. Currently, their combined value is now $1.16 million.
These meme coins play off the popularity of AMC Entertainment (NYSE: AMC) and GameStop (NYSE: GME) stocks, now back on speculators’ radar after their success during the 2021 GameStop short squeeze.
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Roaring Kitty’s come-back
Meme coins have seen a resurgence in the cryptocurrency market after a period of low activity. This renewed interest emerged following the return of the famous meme trader Keith Gill on social platforms on May 13. Gill, known as Roaring Kitty, became known for inspiring the GME short squeeze in 2021.
Roaring Kitty has been actively posting videos on X, hinting at the next meme asset he intends to boost. This wave of activity has ignited interest among traders, prompting many to follow his speculative moves closely.
Crypto traders lost ‘tens of thousands of dollars’ trading GME
However, some traders experienced significant losses trading GME, despite the success of a few. Another Lookonchain post highlighted that not everyone profited from the meme coin.
“These three guys lost tens of thousands of dollars by buying GME with FOMO and panic selling after the price dropped!” the post stated. Lookonchain emphasized the importance of not buying with fears of missing out (FOMO) when prices are soaring, nor panic selling when they decline.
Previously, Finbold reported the story of a meme coin trader on Solana who lost $37,000 in 17 minutes due to the same combination of FOMO and panic selling. An issue that is common in the meme coin crypto casino, mainly among beginners trying to make “easy money.”
These incidents underscore the volatility and high-risk nature of cryptocurrencies, especially with meme coins. It also highlights the impact of influential figures like Roaring Kitty on trading behaviors. With meme coins back in the spotlight, traders are both eager and cautious, wary of repeating past mistakes while hoping for substantial gains.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
