Dogecoin s social media-driven 13,000% rally looks a lot like the GameStop saga. Experts explain why May 07, 2021, 06:21 AM
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Dogecoin s red-hot rally is reminding people of January s GameStop saga.
Experts say it is similarly social media- and celebrity-driven, with few fundamental factors.
They say investors and day traders should be cautious around the new meme investing culture.
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Dogecoin s red-hot rally over the last few days has shocked traditional investors and has been driven on by social media hype and celebrity endorsements.
Sound familiar?
Many investors are comparing dogecoin s meteoric rise to the GameStop saga that gripped the financial world in January.
Then, the unloved shares of a brick-and-mortar video game retailer surged when day traders organising themselves on Reddit got behind it, to the dismay of hedge funds who had been betting against the stock.
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It’s hard to overstate how big the WallStreetBets group has gotten. With 8 million members as of this writing, and the group is still growing it’s as if 1 in every 40 Americans is standing in a giant room talking. And, at first glance, they’re speaking a foreign language.
Tendies, rocket ships, diamond hands this is the language of WallStreetBets (WSB), the white-hot subreddit powering the GameStop (GME) frenzy on the stock market. Strings of rocket emojis signify how the group wants to send GME’s price “to the moon.” Users encourage each other to have “diamond hands” (represented in emojis, of course), a riff on the strength of diamonds and a user’s strength to last through big market swings.