![]() If the value of a single Dogecoin reaches $1, the total market value will be worth tens of billions of dollars. Now, a group on the Reddit forum r/SatoshiStreetBets have made it their mission to push Dogecoin’s value from its current value of five cents to $1. And each time Musk tweets about Dogecoin to his 44.8 million followers, the cryptocurrency’s value goes up a little. According to a February 2021 SEC filing, Tesla purchased $1.5 billion worth of bitcoin using its cash reserves. Musk, the eccentric billionaire leading Tesla and SpaceX, is a big fan of cryptocurrencies. The joke cryptocurrency from 2013 came to center stage in 2021 thanks in part to tweets from Elon Musk. Markus, who no longer works on Dogecoin, couldn’t believe joke software code gave rise to a cryptocurrency worth billions of dollars in total market value. Dogecoin was inspired by the popular Shiba Inu meme called Doge and was created as a joke in 2013.ĭogecoin co-founders, Billy Markus and Jackson Palmer, wanted to poke fun at cryptocurrencies by creating a random digital currency based on a meme. Although Dogecoin seems to fit the two criteria of meme stock - traded on hype and popular with millennial, amateur investors - it is not actually a stock. The cryptocurrency surged more than 500% in 24 hours in the last week of January 2021. Now, the subreddit has over 8 million members, with hundreds of thousands of active users at any given time.Īmateur traders on Reddit are now focused on pushing up the price of another asset: Dogecoin. Around 1.5 million users joined within 24 hours during the GameStop frenzy in late January. As the hype wore off, the stock prices fell to reflect more accurately the struggling nature of the underlying businesses. Although GameStop decided not to issue stock during the frenzy, AMC raised nearly one billion dollars during the meme-stock enthusiasm. ![]() In January 2021, these amateur investors drove AMC’s stock value up from $3 to $20 per share and Gamestop’s stock value up from $18 to $347 per share. When millions of people buy small amounts of a company’s stock, the demand for the stock increases and so does the stock price. These amateur traders used a Reddit forum r/WallStreetBets to coordinate stock purchases. Retail investors are individual, non-professional investors. Both businesses were struggling until an army of retail investors temporarily came to the rescue. and GameStop were both swept up in the recent meme-stock frenzy. Now that we know conversations on Reddit can significantly influence financial markets, how will the public and regulators react to Reddit in the future?ĪMC Entertainment Holdings Inc. Meme stocks generally (1) “trade more on hype than its underlying fundamentals” and (2) are “popular with millennial-aged retail traders.” In recent months, retail traders on Reddit forums were at the center of huge swings in stock market prices. ![]() ![]() Now, a third category is gaining popularity: meme stocks. In the investing world, it is common to hear the terms growth stocks and value stocks. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |