Redditors Pump GameStop, Trading Halted for Bitcoin-like Volatility

Saturday 23 January 2021, 10:15 AM AEST - 1 month ago

  • GameStop is a video game store that's in the midst of closing hundreds of stores.
  • The stock price jumped to a record $65.01 today.
  • Redditors have been aggressively pumping the asset.

GameStop stock closed at a new record today of $65.01 after closing at $43.03 yesterday. Ten days ago, it wasnt even worth $20—and five months ago, you could get a share for a fiver.

Thats some Bitcoin-like growth for the video game retailer. Moreover, the 51% rise in the last day comes in the same form as a cryptocurrency pump scheme: vocal Redditors, urging others to buy, buy, buy—and blasting anyone with the temerity to sell in the midst of a rally.

After losing 96%, GameStop's stock price surges to record highs. Just 18-months ago, GameStop was in financial woes, closing hundreds of stores. GME crashed to $2.60 just 10-months ago. Today, it closed at an all time high of $65.01.

— Blockchain Backer (@BCBacker) January 22, 2021

The crew helped push the price up so rapidly that trading of the asset on the New York Stock Exchange was halted four times on Friday to let things cool down.

The r/wallstreetbets subreddit, which describes itself as like 4chan found a Bloomberg terminal, boasts two million users. And all of the posts in the top 10 as of Friday evening were devoted to stock in GameStop, which goes by the ticker GME.

One popular post features a meme of Mel Gibson as William Wallace in the movie Braveheart telling his motley army to hold. At the top, it says, Fucking ban anyone who sells GME. Oh, there are three rockets as well because its apparently going to the moon.

But there is a villain in this story—and its not the English, but a short-sell investment newsletter called Citron Research, which predicted GameStop would return to $20, likely because, well—check out the much sadder r/GameStop subreddit for the recollections of former employees.

This is a failing mall-based retailer, said Citron Founder Andrew Left yesterday, before GME rose another 50+%. So the amount of people who are so passionate about putting GameStop higher, not on the basis of any fundament ...

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