The meme stock GME in the US stock market has become serious because of the return of the legendary stock god and the meme chart operation!
Cause of the incident:
Hedge funds, especially Melvin Capital, have made large-scale short selling of game retailer GameStop, believing that the company will decline due to the trend of digitalization.
Event climax:
Stock price surge: GameStop's stock price soared from about $20 to as high as $483 in January 2021
Hedge funds suffered heavy losses: Melvin Capital, in particular, had to accept rescue from other hedge funds and reportedly lost billions of dollars
The rise of other "Meme stocks"
Following GameStop, retail investor groups began to look for other heavily shorted stocks, such as AMC, BlackBerry, Nokia, etc., driving a wave of similar stock price surges. It was also after the GME storm that Musk released Dogememe on Twitter, which brought about a crypto meme bull market due to the overflow of funds in the stock market and the release of water, etc.
The outbreak of meme culture
The GME incident strengthened the influence of social media in financial decision-making, proved the potential of retail investor groups through collective action, and changed many people's views on the stock market and ways of participation
Meme played a key role in mobilizing and spreading investment concepts. In the GME incident, meme played a core role. Retail investors use various memes to communicate strategies, motivate each other to hold shares and not sell, and create a common cultural identity against traditional financial institutions on Wall Street. It also highlights the important role of social media in shaping investment trends when network communication is extremely developed
The last round of big rise was in January 2021. Shortly after the GME incident, Musk began to post a large number of tweets to spread Doge Meme. DOGE peaked three months later, with a market value of US$90 billion
Today, GME rose again by more than 100%. It has been suspended twice. At present, Pepe is strong first, and Sol's GME token of the same name has a market value of 60m. After three years, Roaring Kitty has returned to Twitter. Do you think Musk will interact with it? Who will compete with the new and old memes such as doge shib pepe wif?
GameStop (GME.N) resumed trading, and its stock price rose by more than 110%. It triggered circuit breakers four times before
Waiting for a callback, I feel that Sol's GME is the leveraged version of US stocks, but it is only meaningful in the short term, unless there is capital to continue to push to help local dogs upgrade their bloodline
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