GME meme coin has dropped more than 50% in a day while its major holding whales have also fled the scene
The MEME Culture And Its Repercussions
Cryptocurrency was formed with a great intention to increase financial inclusion without using the prevalent banking systems. Cryptocurrencies like Bitcoin and Ethereum have been relatively successful in continuing the path of a decentralized economy. But the launch of daily and no-value meme coins is pushing back the aim of a better-decentralized economy. The overall market capitalization of the memecoins has surged to $55 Billion with a $10 Billion trading volume.
Source: Memecoin returns 2024 by Coingecko
Memecoins has recorded the highest returns of 1324%, as per the report by CoinGecko. As per the report, MEME coins were 4.6 times more profitable than RWA’s most talked-about narrative. Meanwhile, the VanECK subsidiary memecoin index called MarketVector Meme Coin Index surged more than 137% since the beginning of 2024.
Source: Doge gains by Coinmarketcap
The OG’s of memecoin like DOGE, SHIBA, FLOKI, and various others have gained in the range of 100-200% in the past year. The major gains occurred after FEB 2024 in various of these memecoins. These memecoins have gained a strong place in VC portfolios like Pantera Capital, Grayscale, etc.
Source: Dune Analytics
Looking at the data by Dune, one can see that the new meme coins, which are less than 3 to 4 months old, are being traded heavily on every other liquidity platform. The majority of the Ethereum meme coin volume will be three tokens: Pepe, Trump, and Floki. The meme coin culture pushes coins with no real value, and then the majority of the so-called owners of these tokens dump them as soon as they see liquidity. These memecoins are being traded heavily, and one such meme coin is GME.
What Is the GME Coin and Its Irony?
Source: Wallstreetsucks.lol
Before learning about the GME Coin, let’s look at the past in 2021. In 2021, the GAME Stop stock surged to a high of $81 from the lows of $4, gaining over 20x, shocking the world. In the subsequent years, the stock price fell down to the lows of $10 in 2024.
Source:wallstsucks.store
GME on Solana is a tribute to the Game Stop Saga after three years. As per CoinMarketCap, their website is wallstsucks. Their website front page has just a few jargons about crypto and just one blog about their socials. They are also selling merchandise worth $50 with just a logo, which is way more expensive than an Amazon t-shirt, and the irony is they always say they love retail traders.
GME token recently has 8+ new listings and 30k+ users, per their official Twitter handle. One of the famous architects of Gamestop squeeze, Keith Gill, recently brought some of the GME tokens, which contributed to the surge. Let’s move towards the Roaring Kitty and the stand of SEC on the GME Stock.
The Roaring Kitty, SEC AND GME: Definitely Not A Love Triangle
Source: GME Price by market watch
Let’s start with the disappointing return of the Roaring Kitty, AKA Keith Gill, who claims to be an analyst and investor. GILL, who goes by Roaring Kitty on X and YouTube and by deepfucking vault on Reddit, was the center of the Gamestop saga; after a trip to testify before Congress, Gill dropped out of the map. Many people thought he bought a villa and was living his life to the fullest. Now he seems to be back and activated his Twitter account on 13th May 2024 with a pic followed by a bunch of videos, and in one of the videos, he claimed to buy the GME token.
Source: Roaring Kitty Twitter
The return of Roaring Kitty definitely pushed the GME stock and GME token to new highs. Since Gill returned on 13th May, the GME token price has gained over 1815% in just three days. Meanwhile, the stock price jumped 3x within a month.
A recent post by the Unusual Whales on X said that the former SEC chair noted on the 14th of May that the RoariKittytty is behind the stock surge, which he did by tweeting memes.
The question remains: is it okay if the rich are doing it, or is someone else claiming to help the investors without any logical explanation and dumping on retail for their benefit?
An Onchain Scan of GME
GME address by Bubble maps
Whatever the reason for the ongoing rise of GME tokens, the market seems to love them. GAMESTOP coin has 45265 holders with a supply of 6,885,214,218 GME tokens. The creator of the GME token “5kcLsjQupLbCwHcVPEGLzyiqFxmZNti6hw6q8qK3B9fH” currently holds less than a very token. Meanwhile, recently, the block 265972632, a whale bought over $163k worth of tokens.
The pump has not been profitable for everyone some traders, like “2bpSA2fDDCZkSVNdZpxgotin4vd5xcbUWXMKtNYwAR28” has lost a significant amount of money. The token has an overall 34872 active wallets trading it, but most of them became active after the comeback of Roaring Kitty.
Source: Solana.fm
Looking at the pools on various platforms, the majority of the liquidity is concentrated in just one Raydium pool. This pool has seen a strong surge in fees and transactions in the last 24 hours.
Source: Top traders GMX by Dex Screener
The top traders give us a clue that the insiders and a few retailers made a big chunk of money and exited. The top 10 traders have made profits of more than $500k just by holding GME for a week.
It sounds interesting to trade the asset, but these diamond hands excite the position by making a lot of money. One can see the samples in any pool of the GME token.
The pump and Dump of GME
Source: DEX Screener
The GameStop cryptocurrency market cap has declined by 42% in the last 24 hours and is currently at $62 Million. The token’s volume is $167 million, showcasing the exit of diamond hands. It is currently ranked 540 in CMC and is trading near the value of $0.00893.
Looking at one of the pools, the price was constant before Gill’s entry. After his entry, the price surged by more than 1800% within three days. In the last 24 hours, the token price lost more than 50% of its value. The value of the asset price may see a halt near $0.005 before bouncing back or breaking to a new low.
Conclusion
The memecoin culture corrupts the crypto economy, but investors and retailers are moving towards it. The dump of more than 50% of tokens always raises suspicions in these markets for retail traders. GME is currently seeing a strong downtrend and may see a new low in the future. One should be very careful before trading memecoins and not allocate a big portion of their portfolio.
