Solana
Solana trader turns $53,500 into $2.86 million in five months
GameStop Stock (NYSE: GME) is up 165% since the start of the year, and the cryptocurrency market overcame this hype with a GME memecoin. A Solana (GROUND) Challenge The trader made $2.8 million in unrealized profits with this purely speculative token.
In particular, the account ‘7thTbufa‘ purchased the GME token on January 29 and April 3 while trade at low prices. Overall, the trader has accumulated 90.23 million GME in Solana year-to-date and has patiently held despite months of low volume.
This strategy is paying off, since these assets were worth $2.86 million when Lookonchain reported the realization. Specifically, GME was trading at $0.03120 on the decentralized exchange Raydium, while Solana currently trading at $171.
However, the trader may face liquidity issues and it is not guaranteed that he can make his profits with the Solana version of GME, which has no real value or relationship to GameStop. action.
GME/SOL on Raydium, 4-hour chart. Source: Lookonchain
GME Stock Hype and Coin Mania Among Solana Traders
Meme coins like Solana’s GME are trending among cryptocurrencies since May 13. A surge of interest erupted when famous meme trader Keith Gill returned to social platforms. Gill, known as Roaring Kitty, inspired GameStop’s 2021 short squeeze.
Its appearance can be seen in the graphic above. Notably, there was a price spike at that time, followed by a crash once the influencer went silent. The Solana trader kept his GME coin intact during the pump and subsequent crash.
Nevertheless, Roaring Kitty’s Reddit account disclosed a $180 million position in GameStop on June 3, pumping these meme assets again. GME stock is currently trading at $44.07, up 164.37% year to date.
In this context, it should be warned that the exchange of coins or meme actions can be extremely risky. The risk of ruin with this asset class is high and most traders will lose money instead of accumulating gains.
Furthermore, experts warn of the dynamics of the “Great Fool” theory that resembles financial bubbles, when the “mania” disappears and late buyers are left with massive losses of assets that have not no organic demand, in addition to the highly speculative nature of traders trying to outperform the market. , but being dominated as soon as the “music stops”.
Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.