Memecoins
The return of the roaring kitten earned one trader a 32x return
In the cryptocurrency market, meme coins often tell rags-to-riches stories with their sudden price rise. A recent reveal from Lookonchain, an on-chain analytics platform, shared such a story.
Lookonchain further detailed the transaction timeline. It showed the strategic timing of the purchase.
KITTY’s meteoric rise as the roaring kitten returns
A lucky trader uppercase on a great market opportunity. They purchased 17.4 million Roaring Kitty (KITTY) meme coins for 21.2 Solana (SOL), worth approximately $3,000.
When the value of the meme currency has soared by more than 6,000%, the trader made a profit of 294 SOL. This figure amounts to approximately $41,000.
However, the trader still has 4.6 million KITTY left, which is worth approximately $56,000. In total, this trader made a profit of $94,000, almost 32 times more than his initial investment.
Keith Gill, a financial analyst known online as The Roaring Kitty, triggered the price increase. His return to social media platform X (formerly Twitter) has traders speculating on the KITTY meme coin.
Gill, renowned for his key role in the GameStop stock frenzy of early 2021, had been out of the public eye since retiring at the end of 2021. His unexpected return a symbolic tweet was enough to excite coin traders meme. They respond quickly to trends and the activities of public figures.
In addition to boosting the price of KITTY, Gill’s return affected another meme coin, GameStop (GME). As of this writing, GME is up approximately 376% on the 15-minute time frame charts.
To know more: How to Buy Solana Meme Coins: A Step by Step Guide
GME/SOL price trend. Source: DEX Screener
Despite these success stories, Lookonchain has warned of inherent risks in trading meme coins, such as potential rug-pulling out. In the cryptocurrency market, rug pull is a scenario where developers suddenly remove liquidity, leaving investors with worthless tokens. This warning was highlighted in another Lookonchain report involving the meme coin Vibe Cat (MINETTE), where a trader turned 999 SOL into $2.5 million in just 15 hours.
“Note that the developer of VibeCat (MINETTE) did not burn LP tokens, there is a risk of carpet [pull]. At the same time, insiders will dump large amounts of tokens on you,” Lookonchain he wrote.
Meme coins can produce significant returns overnight. However, they require a deep understanding of market trends and influencer impacts. Cryptocurrency trader Rasgard shared several key strategies to trade meme coins effectively.
He suggests investing small amounts that you are willing to lose. He also recommends understanding the market dynamics. Understanding the broader sentiment of the Bitcoin market is important as it is significant affects the values of meme coins.
Furthermore, Rasgard highlights the value of joining a trading group and how social media is crucial to the popularity of meme coins. These strategies can be useful in terms of decision making.
Nonetheless he warns rip-offs and suggests performing security checks on meme coins. Attention to the market manipulation by large holders it is also important.
To know more: 13 Best Solana Meme Coins to Watch in 2024
Indeed, meme coins can bring high returns. However, they require a careful strategy and a clear understanding of the risks involved.
Disclaimer
In compliance with Trust Project guidelines, BeInCrypto is committed to providing impartial and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently verify the facts and consult a professional before making any decisions based on this content. Please note that our Terms and conditions, Privacy PolicyAND Disclaimer They have been updated.