After last week’s Wallstreetbets saga, a large number of the popular stocks fueled by social media are starting to increase in value. Gamestock shares fell more than 60% on Tuesday, while AMC fell more than 49% with shocking investors buying these shares to the bone. Meanwhile, some cryptocurrency advocates believe the only real way to stick it to the bankers and Wall Street is to use digital assets like bitcoin.
Reddit’s favorite stocks are starting to feel pain
News.Bitcoin.com was published last week numerous reports to the fiasco that started on the Reddit forum r / wallstreetbets and then went viral on the internet. Redditors, meme-lords and private investors tried to short Gamestock (GME) stocks and initially managed to shake billions out of hedge funds.
The trend too moved in a few other stocks such as AMC theaters and the mobile company Nokia. However, after a few days of headlines, it shares and even silver began to feel the weight of people losing their shares to escape.
The shares of Gamestop Corp. (GME) fell significantly in pre-markets by more than 60% and on Tuesday morning GME continued to decline. Even after the controversial silver squeeze, the precious metal fell 5% after hitting $ 30 an ounce, breaking an eight-year record. AMC Entertainment Holdings Inc. lost 49% on Tuesday and shares of the Russell 3000 Index (RUA) have fallen dramatically.
Even the cryptocurrencies dogecoin and XRP have not been able to sustain, with a decrease of between -11% (XRP) to -16% (DOGE) today. Meanwhile, brokers such as TD Ameritrade and Robinhood have eased restrictions on some of the stocks that saw high demand last week.
Bitcoin is the last bastion of hope in the free market
Meanwhile, fans of cryptocurrency wallstreetbets (WSB) participants have told the real battle will be fought with digital assets and securities that are onchain. The popular Twitter account called ‘The Chairman’ (@WielerFlits) tweeted on Feb. 1: “The only way to really stick to Wall Street is to use Bitcoin.”
There are a number of reasons why crypto asset fans are telling WSB participants that the real deal has to do with censorship-resistant cryptocurrencies. First, they consider the stock market game “rigged” so that only the big players can win, and it has been for decades. Wall Street, Nasdaq, New York Stock Exchange, and all markets that allow stock trading can stop trading at any time.
If GameStop put bitcoin on their balance sheet, the internet would break.
– Documenting Bitcoin 📄 (@DocumentingBTC) February 1, 2021
These negative aspects were evident in Nasdaq’s Adena Friedman last week told CNBC, would be the company monitoring social media chatter and will stop stocks if they match chatter with unusual stock activity. That same day last week, the WSB Discord channel was censored and removed. The big traders also forced brokers to cease trading GME, AMC and many other popular stocks during the fiasco.
On Wednesday morning, exchanges such as E-Trade, Robinhood and TD-Ameritrade clients were unable to access these platforms. Then exchanges like Robinhood and others explained that certain shares would be unavailable and limited. These manipulative moves are not beneficial to the retailer, and the large stock of whales and hedge funds have taken the lead.
Cryptocurrency advocates believe that digital assets backed by cryptography and peer-to-peer networks are the future of free markets and exchanges. The Gamestop (GME) game was manipulated to begin with, and people still wonder why the stock was over 100% short, showing that more is borrowed than spent. Chainstone Labs CEO and bitcoin proponent Bruce Fenton highlighted this fact on Twitter.
“Business as usual on Wall St is broken,” Fenton said. “If you’re in charge of a securities ledger and you borrow 138% of something, you’re incompetent, should never be trusted again, and you should be declared bankrupt by a better free-market solution.”
Imagine Coinbase doing an IPO with 1: 1 exchange for an onchain Ethereum security token. It could bring in many traditional stock traders into the DeFi ecosystem and be the first of many traditional stock / securities to be tokenized. 🚀
– Pickle ⬡ (@Pickle_cRypto) January 3, 2021
Censorship Resistant Onchain Securities
Meanwhile, a number of people have talked about commodities and securities being traded on the chain using a censorship-resistant and immutable blockchain. The libertarian influencer called ‘Sal the Agorist’, tweeted: “Robinhood will not be able to suspend trading once securities are tokenized.” Some exchanges and even decentralized funding platforms (defi) have already created blockchain-based securities and commodities. Mirror Finance, for example, has tokenized silver Uniswap, FTX has tokenized securities and Bittrex Global has also tokenized popular stocks.
Many other cryptocurrency supporters have shared the same sentiment that bitcoin is the last bulwark of hope for free market supporters. “Hearing so many reports of orders not going through for GME or AMC even before the circuit breakers were on, the brokers were busy with funny business,” one person tweeted. “The house will always find a way to fuck you. Bitcoin is the last free market. Apply your pressure there @wallstreetbets, ”he added.
It is quite clear that most people understand that the stock market game is being manipulated and that there are much better avenues available today that can really put a strain on the financial system. Paper stocks and fiat are short-term games, while cryptocurrency supporters believe digital assets are the long game.
What do you think of the people who say the GME game is short lived and the only way to really stick it to Wall Street is to use crypto assets? Let us know what you think about this topic in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Twitter, Google Stocks, Gamestop,
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