The video game retailer had its own GME Army pushing the price of the stock to an all-time high before platforms stepped in.
Reports are coming in this morning that trading app Robinhood has
suspended trading for GameStop stock and others after GME's price surged
in a Bitcoin-like parabolic rally.
Unless you've been living under a rock, you'll know that average Redditors proved their investing power going up against major Wall Street traders
short-selling GameStop stock. Largely fueled by small-time investors
pushing back against large hedge funds, the price of the stock has risen
more than 1,400% from roughly $20 on Jan. 12 to $358 at time of
publication.
Purportedly in response to the unprecedented trading
action threatening hedge funds like Melvin Capital, Robinhood has
suspended trading for stocks Redditors are pumping like GameStop, AMC
Entertainment, and others. Yesterday, some brokers including TD
Ameritrade restricted trades, while Nasdaq CEO Adena Friedman said that the firm would consider halting trading for similar stocks with “unusual activity.”
The
meteoric rise of a seemingly underappreciated financial asset like
GameStop stock has led to many on social media comparing investing in
the retail store to that of crypto, and the terminology and comparisons
are coming along for the ride. Investors not typically associated with
crypto have begun to use lingo unique to the space.
News outlet Bloomberg Businessweek described GameStop shares going “to the moon,” while some Twitter users have speculated
— perhaps jokingly — that the recent price surge could potentially
bring down the entire financial system. Many crypto users describe the
widescale adoption of Bitcoin (BTC) as ultimately having the same result.
In addition, a number of Redditors on the WallStreetBets subreddit —
where a large part of the movement to drive GameStop share prices up
took place — have written topics imagining their success with traditional stocks will result in them buying
a Lamborghini. “Wen Lambo?” has long been a phrase used to describe
when a token or new project in the crypto space is worth enough for bag
holders to afford the luxury car.
Gamestop’s three-letter stock ticker — GME — is already being treated
by many users as another cryptocurrency with its own fervent supporters
and detractors. Already some are referring to the WallStreetBets
Redditors behind the price surge as the "GME Army," in much the same way
Ripple and Chainlink have their XRP Army and LINK Marines,
respectively.
The crossover into the crypto space is happening in more ways than just the lingo. Yesterday FTX announced it would be listing GameStop as part of the crypto exchange’s tokenized stocks program.
Whether
these crypto terms will stay isolated to interest in GameStop or filter
more widely through the stonks community remains to be seen. Though
many Redditors are seemingly still focusing on AMC Entertainment and
Gamestop, some have now turned their attention to buying stocks for
BlackBerry and Nokia.
Redditors don’t seem to be deterred by Wall Street’s attempts to shut them down. There’s already talk of an “AMC Army” on the platform, and the price of the stock is still more than 200% what it was just two days ago.
source link : https://cointelegraph.com/news/robinhood-suspends-buying-for-gamestop-following-stonks-going-to-the-moon
