The GameStop drama and what does it mean for Bitcoin

[Gyrsur]

The thing of RH closing kinda shows how centralised the exchanges are (especially for small cap stocks like this. One of two international exchanges stopped trading it and the rest just followed (even cross continent).It also didn't seem to be listed in premium exchanger services (ones you pay a fee per trade and a maintenance fee on the account...

The U.S. are the Motherland of Capitalism and will it be forever and ever. period.

there is no chance for any other country to replace it even not for the CCP.

[SISAR]

https://www.reddit.com/r/wallstreetbets going parabolic with new members    Regardless of how this all will end, I think DEX and DEFI will be the next big thing for many non-crypto investors and traders. Very likely the whole crypto sector will get a boost. BTC nicely hodling 30k so it is about the right time for bullrun continuation. Watch alts, especialy DEFI tokens!

[CarnagexD]

You know how I see it? I see it as the general public slowly starting to opening its eyes to the evils that some corporation and entities have committed to us in the past couple of decades, this is our payback. Sure they may have lost millions, even billions of dollars but where did this went to? Our pockets, where we can make use of it more unlike these wall street bankers who will just hoard it all anyway.

[hatshepsut93]

https://www.reddit.com/r/wallstreetbets going parabolic with new members    Regardless of how this all will end, I think DEX and DEFI will be the next big thing for many non-crypto investors and traders. Very likely the whole crypto sector will get a boost. BTC nicely hodling 30k so it is about the right time for bullrun continuation. Watch alts, especialy DEFI tokens!

DeFi is only a tool for trading alts, DEX have extremely low volumes. Until companies start tokenizing their stock, you can forget about smart-contract based stock trading, and so far no major company is willing to do it. This was actually the premise of ICO hype - that stocks will move to blockchain, and we see how it ended.

The only way I see crypto benefiting from it is if WSB crowd will decide to invest in Bitcoin as a form of protest against Wall Street, which I think is still a bit far-fetched.

[Gyfts]

Little bit of a crash for the robinhood traders, so sad! When you trust large financial institutions with all your money and expect them to play fairly, do they really have a leg to stand on when they get fucked over?

Not much sympathy here.

[SISAR]

https://www.reddit.com/r/wallstreetbets going parabolic with new members    Regardless of how this all will end, I think DEX and DEFI will be the next big thing for many non-crypto investors and traders. Very likely the whole crypto sector will get a boost. BTC nicely hodling 30k so it is about the right time for bullrun continuation. Watch alts, especialy DEFI tokens!

DeFi is only a tool for trading alts, DEX have extremely low volumes. Until companies start tokenizing their stock, you can forget about smart-contract based stock trading, and so far no major company is willing to do it. This was actually the premise of ICO hype - that stocks will move to blockchain, and we see how it ended.

The only way I see crypto benefiting from it is if WSB crowd will decide to invest in Bitcoin as a form of protest against Wall Street, which I think is still a bit far-fetched.

They can simply stop giving a shit about stocks and other regulated and rigged shits out there and move to DEXes, plenty of liquidity there 

Nice live covering of drama at https://www.youtube.com/watch?v=u6gAgHA06sc

[mindrust]

On one side, you got a (or a few) hedge fund(s) that think this company GameStop is overvalued because they are closing their branches because retail took a big hit because of covid and that makes perfect sense so they decided to short GME... I don't see any problem.

The problem is, them being so greedy that they are shorting 40%  more than the entire company. If the company has 100 shares in total, they are trying to short 140 shares. How can one sell something that doesn't exist in the first place?


The other side of the story as you know... r/wallstreetbets.

What these guys are doing is simply manipulation. But it is no more manipulation than what the hedge fund was doing I mentioned above. This company has zero worth. It is going up because who gives a fuck? Because memes, because yolo.   I am perfectly OK with this logic because we live in 2021. That's how things have been for a while.

If somebody wants to buy a worthless stock from $500/share, that's his right. Let him do it.

Now the ugly side... Robinhood banning "buys". That's going to trigger a major shitshow.

Some hedge fund gets burned because some people act retarded? That hedge fund shouldn't have wagered more than they could afford to lose. Nobody should give a fuck if they get deleted. Haven't that hedge fund heard the saying "markets may stay irrational more than you could stay solvent" ? Now they know it.

Just because you did your homework and had a good analysis, doesn't mean that you are going to profit from that analysis 100%. If that worked like this Barcelona would win every game they played.

[HeRetiK]

The only way I see crypto benefiting from it is if WSB crowd will decide to invest in Bitcoin as a form of protest against Wall Street, which I think is still a bit far-fetched.

Yes and no.

While I don't see r/wallstreetbets joining the crypto crowd any time soon I do believe that the stunt that Robinhood / Citadel will serve as a nice reminder why decentralization is important.

This will not lead to significant market decentralization now or next year, but it may prime a major disruption the way the banking bailouts primed Bitcoin.


Edit: This interview with the Winklevoss Twins seems kinda relevant at this point:
https://www.youtube.com/watch?v=ugkLNEhvj-Y

[Lorence.xD]

Little bit of a crash for the robinhood traders, so sad! When you trust large financial institutions with all your money and expect them to play fairly, do they really have a leg to stand on when they get fucked over?

Not much sympathy here.

It's not that they trust financial institutions, the people that trade in those does not really have that much choice in the first place. I really don't like that move that they did with the halting in the trading because that is a good indicator that those same institutions are not meant to make people money but to be hedge only for the big money people. Good for those hedgehogs that they got their asses handed even just for this time. If this cycle of blatant abuse by financial institutions halting trades because people have been talking about it, then some people will migrate to different market and one of those said market is bitcoin market.

[verita1]

Now Robinhood users who wanted to trade GameStop stocks can do so on the FTX exchange https://ftx.com/trade/GME/USD

The fall of Robinhood is evident, it is a self-destruction, the corruption was noticed. There will probably be a user exit from this app. Those who invest in stocks will be looking for havens in cryptocurrencies and will be realizing that decentralized applications are better and more secure.

[adaseb]

Now Robinhood users who wanted to trade GameStop stocks can do so on the FTX exchange https://ftx.com/trade/GME/USD

The fall of Robinhood is evident, it is a self-destruction, the corruption was noticed. There will probably be a user exit from this app. Those who invest in stocks will be looking for havens in cryptocurrencies and will be realizing that decentralized applications are better and more secure.

Investing in FTX won't do much to fuel the stock squeeze however. The squeeze happened not because people were buying the stock but because people were buying the options far out of money. The far out of money call options like $60 call were very cheap. However the chance of GME hitting $60 when it was under $20 last month was a rare event. So market makers sold them cheap but those WSB bought the far out of money calls anyways.

And what happened was a gamma squeeze pretty much. The closer that price got to $60 the more the market makers had to buy to remain neutral in their position. So each contract is 100 shares. Hence if someone bought 100 contracts back in early Jan or late Dec, the market makers would need to buy up to 10,000 shares for that 100 contract position. Multiple this by thousands of contracts and you got your short squeeze.

People buying 1 or 2 shares, won't make any difference what so ever. Its people buying hundreds of call options far out of money made the biggest impact.

[adzino]

If you are living under the rock, the GameStop (GME) stock trading has been making quite the news recently, because retail investors organized on reddit managed to pump this stock and made some hedge funds suffer tremendous losses on their short positions, to a point when trading had to be halted, and similar events occured with other stocks.
-snip-

This shows how those centralized financial institutions are controlled by the billionaires who can do whatever they want. When billionaires manipulate the market, no one cares, but when a bunch of regular people unite together to manipulate the price in order to "mess with them", then the whole world (the entities controlled by the billionaires) becomes concerned about the manipulation and deems it unhealthy to the market.

-snip-
I personally wouldn't hurry with conclusions, as this drama isn't over and we're yet to see any actions from SEC, who already said that they are monitoring the situation.

What do you think?

Lol, what else do you expect SEC to do? They will favor those hedge funds investors .

[freedomno1]

What Robinhood and other trade desks did today will be remembered. If people want to play with the stocks know the risk they are taking and still want to YOLO that's on them not Robinhoods place to interfere when hedge funds do the same thing.

The excuse seems to be collateral obligations that broke Robinhood I can see that making sense however they could have worked on it without a suspension of trading that said if they ante up ... we may see quite the surge tomorrow when those shorts close.
https://fortune.com/2021/01/29/robinhood-raised-investors-billion-client-revolt-collateral/
https://finance.yahoo.com/video/heres-why-robinhood-restricting-users-173049721.html

Don't play with more than you can lose applies to hedge funds and traders, calling your buddies to freeze exchanges is just a manipulation plain as that sure they can do it and they have to lower their losses it's their chips however this will cost them.

That said I am a bit partial to the WSB group since I do think hedge funds need to be punished for the 2008 bailout and got away with a slap on the wrist also if this shows anything it's that this is all fun and games till Wall Street is crying then it's point the finger and nag cause they treated it like a casino too.

DEX is getting brighter by the day.

The U.S. are the Motherland of Capitalism and will it be forever and ever. period.

Socialism for the Rich (Hedge Funds) (Big Firms in Covid)
Capitalism for the Poor (People) (Small Business)

[bakasabo]

That's true but it is not really good for any market at all! A market which can be manipulated at will, is very dangerous for an average Joe! It is only profitable for those people are part of the strategy (or should I say conspiracy), but super dangerous for the rest.

Buying stock or investing is always connected with danger and chance of losing. But GameStop drama showed that these average Joes could cooperate and act on the same level as Scrooge McDuck and his mountain of money.

It is like in poker. It is nearly impossible to beat a guy whos amount of chips exceeds other players total chips multiple times. He can just all-in with weak hand all the time and kick-out players from the table.

[redsun114]

Gamestop situation showed us that when not so rich people get together they could out finance the super rich companies as well. The reason those huge wall street banks are capable of doing whatever they want is the fact that there are other investors in it, it is not like few people who are rich suddenly trading, it is tens of thousands of people or other huge banks investing into those hedge funds and that is how they manage to make those trades, which means those companies are basically a community of investors lead by a CEO as well.

We can't fight them alone so we need to get together and when we get together we can become even bigger. At one point wallstreetbets had 800k+ people online, they were buying gamestop shares like crazy and they are still holding, it is not even about making a profit now for them, it is about hurting the ones that hurt them before and getting revenge, same logic as why people move to bitcoin.

[LogitechMouse]

If you are living under the rock, the GameStop (GME) stock trading has been making quite the news recently, because retail investors organized on reddit managed to pump this stock and made some hedge funds suffer tremendous losses on their short positions, to a point when trading had to be halted, and similar events occured with other stocks.

Some people from crypto industry are already making comments how this can be good for crypto, because it's a revolt against old-school centralized finance.

I personally wouldn't hurry with conclusions, as this drama isn't over and we're yet to see any actions from SEC, who already said that they are monitoring the situation.

What do you think?

I didn't have the opportunity to ride this very huge wave in the past days but when I'm reading this thing on Facebook and in Reddit, I literally laughed hard in my bed.

This will be just one of the pump and dump scenarios that will happen in the stock market. It might affect this centralized finance thing and it can also have an effect in cryptocurrency. Its quite unfortunate for those hedge funds who filed for bankruptcy because of this scenario and more unfortunate for those traders who literally bought GME at the top and now suffering a huge loss.

I remembered a stock here in our country who went from I think $0.35 to $4.99 in just one day. Many are crying with that when it happened and its the same here. I just hope that traders who are already in a loss right now can get out of this situation and I hope that they aren't depressed right now.

[mindrust]

I remembered a stock here in our country who went from I think $0.35 to $4.99 in just one day. Many are crying with that when it happened and its the same here. I just hope that traders who are already in a loss right now can get out of this situation and I hope that they aren't depressed right now.

No matter which way the asset goes, upawards or downwards, somebody will be unhappy.

Why open up a position if you are not cool with losing the money you put on that position?

For every position you open there is somebody else betting against you.

Essentially it all boils down to gambling and you shouldn't play if you are afraid of losing. Get a job instead.

[freedomno1]

Hmm read a WSB thread and this is big brain stuff here who said the stock market can't be as fun as crypto at times it has its moments haha
https://www.reddit.com/r/wallstreetbets/comments/l7fw0x/i_used_to_work_merrill_heres_what_likely_happened/

TL;DR: There's simply not enough float and the broker/clearing house will fail to deliver on a large scale if they keep letting new positions be opened, hence restrictions.

What will happen now: Based on my previous short squeezes, Friday (tomorrow) will be nuts; All this gamma has to go somewhere and since there's not enough float, I'm guessing up up up up up.

[disconnectme]

I believe Bitcoiners know that the system is rigged, this is why most of us joined Cryptocurrencies, with the power that be using all the tools at their disposal to stop the GameStop show, these investors know how the system is run and have the first hand knowledge of how to beat these Wall street guys. Bitcoin is the only system now that is fair to everyone, this is why I believe we will hit $5 trillion very soon, just look at Doge price yesterday, this people will keep looking for this insane profit until the Crypto bear market set in and flush out most of these dump money

[tyz]

The thing of RH closing kinda shows how centralised the exchanges are (especially for small cap stocks like this. One of two international exchanges stopped trading it and the rest just followed (even cross continent).It also didn't seem to be listed in premium exchanger services (ones you pay a fee per trade and a maintenance fee on the account...

The U.S. are the Motherland of Capitalism and will it be forever and ever. period.

there is no chance for any other country to replace it even not for the CCP.

Wrong! The motherlands of capitalism are United Kingdom and the Netherlands [1]. If you take it very seriously, then the Netherlands. Capitalism is not bad. Without it a large part of the population today belonging to the middle and upper classes would be poor. It is just not allowed to be uninhibited capitalism like e.g. Manchester capitalism but rather a tamed capitalism such as the social market economy.

[1] https://en.wikipedia.org/wiki/History_of_capitalism