Hallo Traders
I hope you believe as much as I do that Doge will be great! Much wow
GameStop madness spills over to dogecoin (DOGE), but what actually happens?
The mainstream media is currently writing about the stock price of GameStop, an American video game retailer. The stock soared in a way that we are really only used to within the crypto market. In the aftermath of the GameStop story, we now also see an altcoin shoot up as a result of hype. And which altcoin that is will probably not surprise you!
But first, what's actually going on with GameStop (GME)? The retail chain offers the option of handing in physical video games in exchange for money or another game. A service that is actually completely unnecessary today as we do everything digitally. Large investors therefore decided to short the share.
In fact, these large investors had so little hope in the company's future that by the end of 2020, 100% of all GME shares had been borrowed for shorting. When you short a share, you borrow the share from a shareholder, sell this share for the current price, wait for a lower share price, buy back a share, after which you return the share to the shareholder whose share you initially bought. borrowed. That way short sellers make a profit.
But then the WallStreetBets Redditors came into play. They saw their beloved GameStop being cut to pieces. Based on a number of future plans the company has along with the “just because you can” mentality that prevails on the subreddit, the Redditors decided to buy GME en masse. The result is a huge short squeeze.
A short squeeze means that shorters are forced to close their position. When you close a short position, you must buy the stock at the current market price. In short, this creates more buying pressure with which the GME stock accelerated even further. At the beginning of 2021, GME was still at $ 17, now it is $ 347.50. This marks an increase of almost 2,000%! It is estimated that short sellers lost $ 6 billion on a company that was worth only $ 1.2 billion in total.
Anybody own Bitcoin? ;)
best regards
I hope you believe as much as I do that Doge will be great! Much wow
GameStop madness spills over to dogecoin (DOGE), but what actually happens?
The mainstream media is currently writing about the stock price of GameStop, an American video game retailer. The stock soared in a way that we are really only used to within the crypto market. In the aftermath of the GameStop story, we now also see an altcoin shoot up as a result of hype. And which altcoin that is will probably not surprise you!
But first, what's actually going on with GameStop (GME)? The retail chain offers the option of handing in physical video games in exchange for money or another game. A service that is actually completely unnecessary today as we do everything digitally. Large investors therefore decided to short the share.
In fact, these large investors had so little hope in the company's future that by the end of 2020, 100% of all GME shares had been borrowed for shorting. When you short a share, you borrow the share from a shareholder, sell this share for the current price, wait for a lower share price, buy back a share, after which you return the share to the shareholder whose share you initially bought. borrowed. That way short sellers make a profit.
But then the WallStreetBets Redditors came into play. They saw their beloved GameStop being cut to pieces. Based on a number of future plans the company has along with the “just because you can” mentality that prevails on the subreddit, the Redditors decided to buy GME en masse. The result is a huge short squeeze.
A short squeeze means that shorters are forced to close their position. When you close a short position, you must buy the stock at the current market price. In short, this creates more buying pressure with which the GME stock accelerated even further. At the beginning of 2021, GME was still at $ 17, now it is $ 347.50. This marks an increase of almost 2,000%! It is estimated that short sellers lost $ 6 billion on a company that was worth only $ 1.2 billion in total.
Anybody own Bitcoin? ;)
best regards
Comment:
and we're in the game again
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Comment:
the current consolidation looks like a solid support for the future with the next correction, (0.065-0.082)
