A cryptocurrency trader has sold their $GME, a memecoin that saw its price explode on the Solana blockchain after a meme stock frenzy surrounding GameStop resurfaced earlier this month, for a loss of over $122,000 after capitulating.
According to data shared by on-chain analysis service Lookonchain, the cryptocurrency trader sold their memecoin that use the same ticker symbol as GameStop – GME – after purchasing them with 1,668 SOL they withdrew from popular cryptocurrency exchange KuCoin.
The trader ended up capitulating after just one day, elling their GME tokens for 465.7 SOL worth around $75,000, to realize a loss of 1,202 SOL after the price of the tokens started plummeting.
The recent meme stock trading frenzy started after a trader central to the 2021 movement, Keith Gill, known on X as RoaringKitty and DFV on Reddit, after he returned to social media from a three-year hiatus that ended after his testimony in Congress.
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The trader’s return saw the price of GameStop (NYSE: GME) surge as a wave of retail traders drove up the price of the video game retailer in a move that led to widespread media coverage. The firm’s stock price rally two years ago had a similar effect and even led to a Netflix series, a movie, and considerable financial scrutiny.
The price of GameStop’s shares jumped from little under $17.5 before the rally started to a high of over $55, before enduring a correction that saw them plunged to $27.6 at the time of writing.
AMC Entertainment (NYSE; AMC), a movie theater chain, experienced a similar uplift, as did various lesser-known cryptocurrencies associated with Roaring Kitty and GameStop.
The sharp increase in GameStop’s stock price has resulted in significant losses for short sellers, who had previously bet on a decline. Ihor Dusaniwsky, managing director of S3 Partners, told the New York Times that GameStop shorts, which had accumulated $392 million in profits earlier this year, faced losses amounting to $852 million by the end of Monday.
Featured image via Unsplash.
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- Source: https://www.cryptoglobe.com/latest/2024/05/bet-solana-based-memecoin-gme-goes-wrong-trader-capitulates-after-122000-loss-in-sol/
