A Solana-based memecoin linked to Keith Gill’s Roaring Kitty X account collapsed shortly after its developer cashed out approximately $729,000, reigniting concerns about coordinated sniping and compromised social media accounts in the memecoin market.
The token, Red Kitten Crew (RKC), briefly surged to an $11 million market capitalization after Gill’s account posted the token’s ticker and contract address. The post was deleted shortly afterward, and the token’s value fell roughly 67% to $3.6 million at the time of reporting, according to Dexscreener data.
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Developer exit and supply concentration
Blockchain analytics firm Lookonchain reported that the token’s developer sold approximately $611,000 worth of RKC tokens and collected an additional $118,000 in creator fees through the Pump.fun launchpad, totaling roughly $729,000 in proceeds. The developer initially used 10 wallets to acquire 395.18 million RKC tokens, representing 39.52% of the total supply, before retail traders entered the market.
This distribution pattern suggests a coordinated sniping effort, where creator-linked wallets front-ran community buyers to extract value. The episode highlights persistent risks in celebrity-linked memecoin launches, where a single social media post — or a suspected account compromise — can send thinly traded tokens sharply higher before concentrated early holders sell into later buyers.
Trader loses nearly $190,000 in one hour
One cryptocurrency trader lost nearly $190,000 within an hour of trading RKC. According to Lookonchain, the trader spent $250,000 to purchase 31.15 million RKC tokens just before Gill’s post was deleted, and sold the position for only $62,200, incurring a $188,600 loss.
Sniping and coordinated trading activity have been a long-standing issue in the memecoin space. Earlier this week, blockchain visualization platform Bubblemaps warned that 90 newly funded wallets bought 90% of the Mystery (MYSTERY) memecoin supply at launch, describing the token’s concentration as a “textbook scam.” Mystery has since crashed by over 98% from its peak $7.5 million market capitalization.
Broader implications for memecoin traders
The RKC incident underscores the risks traders face when participating in newly launched memecoins with highly concentrated supply structures. The now-deleted X post marked Gill’s first activity in over 15 months, raising community concerns about whether his account was compromised. Cointelegraph has reached out to Gill for confirmation.
In a similar incident in February 2025, a cryptocurrency sniper made nearly $28 million on the Broccoli (BROCCOLI) memecoin shortly after Binance co-founder Changpeng Zhao revealed his dog’s name, triggering a wave of community-driven token listings on Pump.fun.
Conclusion
The RKC memecoin crash serves as a cautionary tale about the dangers of trading tokens with opaque supply distributions and celebrity-linked social media posts. Traders should verify token distribution data and exercise caution when entering positions based on social media activity, particularly when large portions of supply are controlled by a small number of wallets.
FAQs
Q1: What caused the RKC memecoin to crash?
A: The token crashed after its developer cashed out approximately $729,000 in tokens and fees, following a now-deleted post from Keith Gill’s Roaring Kitty X account. The developer held nearly 40% of the supply, allowing a coordinated exit.
Q2: How much did one trader lose on RKC?
A: One trader lost nearly $190,000 within an hour, buying $250,000 worth of tokens and selling for only $62,200 after the post was deleted and the price collapsed.
Q3: Is sniping common in memecoin launches?
A: Yes, sniping — where creator-linked wallets buy large portions of supply before retail traders — is a persistent issue. Platforms like Pump.fun have been used for such launches, and analysts warn traders to verify supply distribution before investing.
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