Once again events are happening at such speed in the crypto market that it is almost impossible to fully track it and therefore you may not know what GameStop is and why the crypto community is furious with Robinhood.
The torches are lit!
First of all let’s start talking about GameStop, you have probably heard it before since it is an American store that sells games, consoles and other electronic products.
GameStop shares are not having a good time as, with fewer people buying due to the pandemic, the future of the company was not looking good.
This is where wallstreetbets enters history. For those who do not know Reddit, it is a website that bears certain similarities with Twitter or Facebook. However, here are forums with particular topics and wallstreetbets is one of them.
In this way, approximately four million people participate in this group and talk about actions and where they should invest.
As we mentioned previously, GameStop shares were not looking good and the market was betting that their price would continue to fall. But that all changed when a large number of people on the wallstreetbets Reddit forum exchanged tips and bought shares on GameStop.
Yes, Reddit users made a coordinated effort to crack down on short sellers, causing GameStop shares to rise approximately 400% this week.
Losses on Wall Street have been numerous, the most notable being that of Melvin Capital Management. The fund, led by Gabriel Plotkin, was forced to close its positions against GameStop after the losses it recorded in recent days.
Crypto community enraged at Robinhood
This morning, Robinhood announced the restriction of transactions for American Airlines, AMC Entertainment, Blackberry, Best Buy, Castor Maritime, Express, GameStop, Koss Corporation, Naked Brand Group, Nokia, Sundial Growers, Tootsie Roll Industries and Trivago NV.
According to the press release, the decision is a consequence of the high volatility of the market. However, this occurs after the redditors executed their move.
Therefore, the crypto community is enraged because it considers the company’s decision to be hypocritical. Especially when you notice that their website states that the company’s mission is to “democratize finance for everyone.” In addition, the company believes that the financial system must “be built to work for everyone.”
“Robinhood has just eliminated GME, AMC and NOK. This is bullshit », said Meltem Demirors, chief strategy officer at Coinshares.
Also, Dave Portnoy assured that he would burn Robinhood to the ground if they destroyed the free market. In addition, he raised that the platform only has two options: allow free trade or die.
Meanwhile, the momentum that launched GameStop shares to the moon has been dissipating as, in the last others, the price has fallen 44%.
Ray Dalio assures crypto leader is on Bridgewater’s radar
In a note published today, Ray Dalio, who runs the world’s largest hedge fund, Bridgewater Associates, said that the leading crypto is “a great invention.”
He also added that Bridgewater has Bitcoin on its investment radar, ensures that it will not let it escape.
The leading crypto is undervalued
Once again, Bitcoin continues to gain followers who see its long-term potential. The last was the CEO of One River Asset Management, Eric Peters, who assured that the crypto leader is “drastically undervalued.”
“Crypto assets are drastically undervalued relative to some of these other stores of value”, said Peters, adding: “That is what makes us excited about them: they are an undervalued asset for that macro context.”
In a few lines …
- Discord, a group chat app, has prohibited the server associated with r / WallStreetBets.
- An unofficial Telegram channel created to support the WallStreetBets movement has seen growth in the number of followers and already has 59,000 members.
- Binance Research found that an overwhelming majority of crypto investors trust digital assets.