The Solana-based meme coin Red Kitten Crew (RKC) experienced a dramatic boom-and-bust on May 11 after posts from Keith Gill's (Roaring Kitty) verified X account were promptly removed. The incident wiped out nearly $10 million in market value within hours.
Posts Trigger Surge, Then Panic Selling
According to CryptoComLearn, the account published two posts containing a Pump.fun contract address and a cartoon clip. This led RKC's market cap to rocket to nearly $12 million. However, once the posts were deleted, panic selling ensued, collapsing the market cap to roughly $2 million. A total of approximately $10 million in value evaporated.
On-Chain Data Raises Insider Dumping Concerns
Blockchain data reveals that the developer behind RKC may have profited significantly. The developer spent 20 SOL to acquire a large portion of the token supply and later sold for substantial gains near the peak. Allegations of insider dumping have emerged, with the developer reportedly collecting significant creator fees. Furthermore, concerns about wallet concentration and the possibility that Roaring Kitty's account was hacked have been raised, drawing parallels to previous celebrity-linked meme coin incidents.
Analysts: Short-Term Play Without Official Confirmation
Analysts caution that RKC is likely a short-term play unless official confirmation of Gill's involvement is provided. Without such confirmation, any meme coin relying on celebrity endorsements faces the risk of sudden crashes. RKC's price has fallen over 80% from its peak, and liquidity has dried up significantly.