The first meme-coin was born in 2013: Dogecoin (DOGE). This cryptocurrency is kind of an homage to the known meme Doge, which origins go as back as 2005. Then, years later, Jackson Palmer, a marketer for Adobe Systems, bought the Dogecoin.com domain for fun. He started like that what it would be a digital currency with over $7b in market capitalization.
Now, we have a curious phenomenon around this cryptocurrency. Its price was boosted to new All-Time-Highs (ATHs) last February, and it wasn’t due to something inherent in the coin itself. Dogecoin’s system has its own blockchain similar to Litecoin, and this one hasn’t changed a lot in a while.
The reasons behind this sudden growth are partly fun and partly revenge. And the consequential adoption because of it.
WallStreetBets, Gamestop, and Dogecoin
In case you don’t know it already, there is a subreddit dubbed “WallStreetBets” (WSB), where users worldwide meet to share experiences about the stock market. And to defy the entire financial system by joining forces to sabotage Wall Street, it seems.
Let’s check. GameStop (GME) is an American company that sells videogames and related products, physically. With the rise of online game platforms (Xbox, PlayStation, Steam, etc.) and the COVID-19 pandemic, they didn’t bear very well. They’ve been suffering millionaire financial losses and they’ve closed thousands of its stores worldwide.
That’s why, in the stock exchanges, the bigger investors (which mean investment companies) have been betting for its failure and making profits with such bets. They borrowed (and sold) GME stocks at the beginning of January, and they were expecting them to decrease by the end to make profits from it. The disappointment and alarm were large when the stocks didn’t decrease but skyrocketed out of a sudden.
From $17.25, these stocks reached $325+ per unit. That meant a 1,784%+ increase and millionaire losses for the short-selling investors. All this because of a…