Following the Wallstreetbets saga last week, a great number of the popular shares being fueled by social media have started to tank in value. Gamestop shares dropped over 60% on Tuesday, while AMC dropped more than 49% shaking investors who bought into these stocks to the core. Meanwhile, a number of cryptocurrency advocates believe the only true way to stick it to the bankers and Wall Street is to leverage digital assets like bitcoin.
Reddit’s Favorite Stocks Begin to Feel Pain
Last week, news.Bitcoin.com published numerous reports on the fiasco that started on the Reddit forum r/wallstreetbets and then went viral across the internet. Redditors, meme lords, and retail investors attempted to short squeeze Gamestop (GME) shares and at first they were successful in shaking out billions from hedge funds.
The trend also moved into a few other stocks like AMC theaters and the mobile company Nokia. However, after a few days of headlines, these stocks and even silver started to feel the weight of people offloading their shares in order to escape.
Shares of Gamestop Corp. (GME) dropped significantly in pre-markets sliding over 60% and on Tuesday morning GME continued to slide. Even after the controversial ‘silver squeeze,’ the precious metal dropped 5% after touching $30 per ounce breaking an eight-year record. AMC Entertainment Holdings Inc. lost 49% on Tuesday, and stocks from the Russell 3000 Index (RUA) have slid massively.
Even the cryptocurrencies dogecoin and XRP have not been able to hold up, dropping between -11% (XRP) to -16% (DOGE) today. Meanwhile, brokers like TD Ameritrade and Robinhood have loosened restrictions on some of the stocks that saw significant demand last week.
Bitcoin Is the Free Market’s Last Bastion of Hope
Meanwhile, cryptocurrency fans have been telling wallstreetbets (WSB) participants that the true battle will be fought with digital assets and securities that are onchain. For instance, the popular Twitter account dubbed “The Chairman” (@wsbchairman) tweeted on February 1: “The only way to truly stick it 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 is with censorship-resistant cryptocurrencies. For one, they consider the stock market game “rigged” for only the big players to win, and it has been that way for decades on end. Wall Street, Nasdaq, New York Stock Exchange, and all the markets that allow the trading of shares can halt trading at any time.