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October 2, 2022
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Will Dogecoin shoot through WallStreetBets just like GameStop?

Is Dogecoin’s mega bomb in recent days due to the same WallStreetBets community that pumped GameStop’s stock?

Until yesterday, the price of DOGE hovered around 7.7 thousandths of a dollar. It has risen 4.5 thousandth since the end of 2020, but it was still a long way from the historical record of 18.6 thousandths on January 7, 2018.

Yesterday, however, a massive appreciation took place, which led to a new historical record of 77.8 thousandths of a dollar, with four consecutive peaks.

In other words, it not only multiplied its value almost ten times in one day, it also rose to a level four times higher than its previous record.

What Dogecoin lives for is certainly a bomb, and some suspect that the community WallStreetBets on Reddit, which has been raising the stock price of GameStop (GME) in the last few days, may be behind this.

In fact, thanks to an initiative by this community, which now has more than five and a half million members, the price of GME shares, listed on Nasdaq, increased considerably.

Until January 12, 2021, GME’s stock price had never exceeded $ 20, but thanks to an initiative coordinated by a large number of retail investors, the price jumped to $ 40, then $ 75 and yesterday reached almost $ 500.

In other words, it increased 40 times in just over two weeks.

Is WallStreetBets pumping Dogecoin?

The fact is that on WallStreetBets (WSB), a huge group of organized retail investors is waging a kind of war against the big speculators who had sold the shares after GameStop’s serious corporate problems.

Anthony Pompliano stated:

“I hope retailers will bring GameStop (GME) to $ 1,000 tomorrow, to have another day of hedge funds and billionaires crying on television.”

Although there is no trace on Reddit of a GameStop-like bomb, organized in the price of Dogecoin, there are, however, two clues that suggest that something similar may have happened.

First of all, Elon Musk, one of the champions of WallStreetBets, who yesterday seems to have contributed to this bomb with his usual cryptic tweet.

But most of all, the WSB President, who with more than 700,000 followers tweeted yesterday:

“Doge has already reached $ 1?”

So, while there is no evidence, there are some clues to believe that a similar organization may be behind the DOGE bomb like the one that pumped GME.

In that case, the Dogecoin bomb could indeed be artificial, and the speculative bubble that formed yesterday about its price could burst.

Speaking of the GameStop problem, Bitfinex CTO Paolo Ardoino said:

“Bitcoin is on the rise again as the GameStop issue takes center stage. As advocates for retail investors protest against the current structure and practices of financial markets, it is important to note that much of the work being done in the blockchain space has been inspired by these barriers. Removing obstacles for day-to-day people who are building and looking for wealth growth opportunities has always been part of the crypto universe. The rise of Bitcoin in a day of so much rage against financial elites represents a beacon of hope for a fairer and more equitable financial system ”.

Source: cryptonomist

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