Iris Coleman
May 12, 2026 13:43
Solana-based RKC memecoin plunges 67% as developer cashes out $729K. One trader suffers a $190K loss amid concerns of account compromise.
The Solana-based Red Kitten Crew (RKC) memecoin linked to Roaring Kitty’s X account has plummeted 67% after its developer cashed out $729,000. The sudden crash left one trader nursing a $190,000 loss and raised questions about the legitimacy of the project and the integrity of Keith Gill’s social media account.
The debacle began after Gill’s X account—his first activity in over 15 months—posted the RKC token’s ticker and contract address, sending the token’s market cap skyrocketing to $11 million. The post was soon deleted, but not before a frenzy of trading. According to Dexscreener, RKC’s market capitalization has since fallen to $3.6 million.
Blockchain analytics firm Lookonchain revealed that the developer sold $611,000 worth of RKC tokens and earned another $118,000 in creator fees through Pump.fun, bringing the total exit to $729,000. Lookonchain also flagged that 10 wallets linked to the developer purchased 39.52% of RKC’s supply before the public launch, sparking concerns of front-running retail traders.
One trader, who reportedly spent $250,000 to acquire 31.15 million RKC tokens, bore the brunt of the fallout. After the token’s price plunged post-deletion of Gill’s X post, the trader managed to sell his holdings for just $62,200, booking a staggering $188,600 loss in under an hour.
The incident has raised eyebrows over whether Gill’s X account was compromised. Roaring Kitty, whose real name is Keith Gill, gained notoriety in 2021 for catalyzing the GameStop (GME) short squeeze, which pitted retail investors against institutional short sellers. Cointelegraph has reportedly reached out to Gill to confirm if he still controls the account.
This episode underscores the risks of celebrity-linked memecoins, where hype and concentrated supply can lead to sharp price swings and significant losses for retail investors. It also highlights the ongoing issue of “sniping,” where creators or insiders dominate token supply at launch, extracting value from latecomers.
RKC isn’t the only recent example of memecoin turmoil. The Mystery (MYSTERY) token, which saw 90 wallets control 90% of its supply at launch, has crashed over 98% from its peak $7.5 million valuation, according to Dexscreener. Similarly, coordinated sniping has been a recurring theme in the memecoin space, as seen with the Broccoli (BROCCOLI) token in 2025, where a single trader reportedly profited $28 million.
The RKC crash may serve as a cautionary tale for traders chasing the next big memecoin. As this market demonstrates time and again, thinly traded tokens with concentrated supply are fertile ground for manipulation and sudden collapses.
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