Robinhood suspends buying for GameStop following stonks going 'to the moon'
Robinhood suspends ownership for GameStop following stonks going 'to the moon'
The video game retailer had its own GME Army pushing the price of the stock to an all-fourth dimension high before platforms stepped in.
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Reports are coming in this morning that trading app Robinhood has suspended buying for GameStop stock and others after GME'southward toll surged in a Bitcoin-like parabolic rally.
Unless y'all've been living under a stone, you'll know that boilerplate Redditors proved their investing power going upwards confronting major Wall Street traders short-selling GameStop stock. Largely fueled by small-time investors pushing back against large hedge funds, the toll of the stock has risen more than 1,400% from roughly $20 on Jan. 12 to $358 at time of publication.
Purportedly in response to the unprecedented trading action that has been threatening hedge funds like Melvin Uppercase, Robinhood has suspended the purchase of stocks that Redditors are pumping — such as GameStop, AMC Entertainment and others. Yesterday, some brokers including TD Ameritrade restricted trades, while Nasdaq CEO Adena Friedman said that the firm would consider halting trading for like stocks with "unusual activeness."
The meteoric rise of a seemingly underappreciated financial asset like GameStop stock has led to many on social media comparison investing in the retail store to that of crypto, and the terminology and comparisons are coming along for the ride. Investors not typically associated with crypto have begun to use lingo unique to the space.
News outlet Bloomberg Businessweek described GameStop shares every bit going "to the moon," while some Twitter users have speculated — perhaps jokingly — that the recent price surge could potentially bring down the entire financial system. Many crypto users draw the widescale adoption of Bitcoin (BTC) as ultimately having the same result.
GameStop shares gonna exist the new Bitcoin. Going all in with my pension. HODL.
— Internet Historian (@NetHistorian) Jan 27, 2021
In add-on, a number of Redditors on the r/Wallstreetbets subreddit — where a large role of the movement to bulldoze GameStop share prices upward took place — have written topics imagining that their success with traditional stocks will result in them buying a Lamborghini. "Wen Lambo?" has long been a phrase used to draw when a token or new project in the crypto space is worth plenty for bag holders to beget the luxury auto.
Bitcoin is so 2020. GameStop is the new store of value.
— Aaron Levie (@levie) January 26, 2021
Gamestop's 3-letter stock ticker, GME, is already beingness treated by many users as another cryptocurrency with its own fervent supporters and detractors. Already some are referring to the r/Wallstreetbets Redditors behind the toll surge as the "GME Ground forces," in much the same way that Ripple and Chainlink accept their XRP Ground forces and LINK Marines, respectively.
The crossover into the crypto space is happening in more means than simply the lingo. Yesterday, FTX announced it would be list GameStop as part of the crypto exchange's tokenized stocks plan.
Whether these crypto terms will stay isolated to interest in GameStop or filter more than widely through the stonks community remains to be seen. Though many Redditors are seemingly even so focusing on AMC Amusement and Gamestop, some have now turned their attending to ownership stocks for BlackBerry and Nokia.
Redditors don't seem to be deterred by Wall Street'southward attempts to close them down. There'due south already talk of an "AMC Ground forces" on the platform, and the cost of the stock is still more than 200% higher than what it was merely two days ago. Thousands have already responded to Robinhood's actions by leaving one-star reviews for the app on the Google Play Store, giving it a 1.0 rating at the time of publication.
Source: https://cointelegraph.com/news/robinhood-suspends-buying-for-gamestop-following-stonks-going-to-the-moon
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