A Solana-based meme coin named Roaring Kitty (RKC) collapsed by over 90% in a matter of hours after an X account associated with the token deleted a key post, triggering a sell-off that was magnified by the project's developer offloading their holdings for approximately $611,000.
"The developer's actions, coupled with the sudden reversal on social media, created a classic rug pull scenario," said Jason Wu, an on-chain analyst. "The transparency of the blockchain makes these events easy to track, but the speed at which they unfold leaves most holders with no time to react."
On-chain data from the Solana explorer Solscan confirms the developer's wallet activity. The address systematically sold approximately 395.18 million RKC tokens across multiple transactions, receiving 5,051 SOL, valued at roughly $493,000. In addition to the direct sales, the developer wallet was the recipient of 1,209 SOL in creator fees, worth another $118,000 at the time of the transactions.
The event underscores the extreme volatility and inherent risks of meme coins, which are often driven by social media sentiment rather than fundamental value. The RKC token's rapid rise and fall serves as a cautionary tale for investors chasing hype cycles, particularly those linked to influential but unaffiliated social media accounts like 'Roaring Kitty,' whose unrelated GameStop posts recently caused GME stock to spike. The incident is expected to increase scrutiny on developer wallets and token distribution schedules for new meme coin launches on platforms like Solana and Base.
This article is for informational purposes only and does not constitute investment advice.
