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MCS | GameStop!! XRP??

20 days ago

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Greetings from MCS, the derivatives trading platform where traders ALWAYS come first.

Today, I would like to talk about the story of GameStop, an American video game distributor. As shown in the chart below, the stock price of GameStop, listed on the New York Stock Exchange (NYSE), showed a sharp rise at the end of January, and this increase is not based on corporate value.

Source: Investing.com

Against the hedge fund Melvin Capital, which led the massive short selling, private investors at WallStreetBets, a stock forum in the online community Reddit, united to raise the stock price of GameStop. In the face of large-scale financial forces, the movie-like thing that the general public triumphed in real life happened.

As a result of the GameStop war, hedge fund Melvin Capital suffered massive losses. Now, the traditional financial market is not just a market for vested interests, and the ants who are united have shouted the same voice. Decisions and consumption are made through Memes, and this is a shift in thinking that vested rights may be defeated by the general public.

In that sense, the story of GameStop can be seen as meaningful because the public wins.

This time, let's talk about cryptocurrencies which prices surged around the same period.

If you look at the chart below, the price of XRP also started to skyrocket from the 29th. Previously, the price of XRP had plummeted due to the decision of the U.S. Securities and Exchange Commission (SEC) that accused the foundation of Ripple and Ripple's executives for issuing a security token, XRP.

Source: MCS (https://mycoinstory.com)

On January 29, a legal document from Ripple was released in response to a lawsuit filed by the US Securities and Exchange Commission (SEC), and prices began to rebound. But it was really the WallStreetBets that won the GameStop war that played a decisive role in the price spike.

As XRP began to be mentioned in WallStreetBets, a new Telegram room called BUYANDHOLDXRP was created and recruited 200,000 members in a single day. BUYANDHOLDXRP announced a group action with the slogan to pump up XRP at 1:30 PM UTC on February 1, 2021. With this notice, the price of XRP began to skyrocket, but then the price plummeted around the time announced and returned back to its previous position.

XRP followed the pattern of the surge and plunge of Dogecoin, a simple MEME coin. The surge of Dogecoin was nearly 1,000% in one day when a Twitter user named "WSB Chairman" tweeted to 750,000 followers, "Has Dogecoin ever been to a dollar?"

The case of XRP worries me a lot. The WallStreetBets move is the triumphant story of power balancing. However, pumping groups in the existing crypto market that imitate this should not indiscriminately pump prices and take advantage of them.

“Collective action to protect the rights and interests of individual investors from unfair financial power”; unless we continue this story, it will eventually fall into another power group that produces numerous individual victims, just as the vested financial powers have been.

Investors are advised to pay special attention when trading.

Traders ALWAYS come first on MCS.

Thank You.

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Published 20 days ago