How a crypto investor turned $53,500 into nearly $3 million in 5 months

Shares of GameStop (NYSE: GME ) are up 165% so far this year, and the crypto market has reflected that excitement with the introduction of the GME meme cryptocurrency.

A DeFi trader on the Solana blockchain has accumulated $2.8 million in unrealized profits from this speculative token.

The account , identified as "7eTbufa', bought GME tokens on January 29 and April 3, taking advantage of low trading prices. During the year, this trader accumulated 90.23 million GME tokens in Solana, holding on to them despite periods of low trading volume.

This strategy appears to be paying off as these holdings are valued at $2.86 million according to the report on Lookonchain. At the time, GME was trading at $0.03120 on the Raydium decentralized exchange, while the price of Solana was $171.

However, the trader may face liquidity challenges as there is no guarantee that these profits can be realized with Solana-based GME, which has no intrinsic value or connection to actual GameStop stock.

Since May 13, meme coins like Solana's GME have gained popularity in the crypto community. Interest peaked when famous meme trader Keith Gill, aka “Roaring Kitty' resurfaced on social media. Gill was the catalyst behind the short squeeze on GameStop stock in 2021.

Gill's Reddit account revealed a $180 million stake in GameStop on June 3, sparking another spike in these meme assets. GME stock is currently trading at $46,55, up 179% year-to-date.

It is important to note the high risk associated with trading meme tokens or meme shares. This asset class is highly volatile and many traders may incur significant losses rather than profits.

Experts warn against the dynamics of the "Big Fool" theory, which is reminiscent of financial bubbles. After the initial frenzy wears off, latecomers are often left with significant losses on assets that lack organic demand driven solely by speculative trading until the market inevitably corrects.