Reports are coming in this morning that trading app Robinhood has suspended trading for Gamestop stock and others after GME’s price surged in a Bitcoin-like parabolic rally.
Unless you’ve been living under a rock, you’ll know that average Redditors proved their investing power going up against major Wall Street traders short selling GameStop stock. Largely fueled by small-time investors pushing back against large hedge funds, the price 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 threatening hedge funds like Melvin Capital, Robinhood has suspended trading for stocks Redditors are pumping like 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 similar stocks with “unusual activity.”
The meteoric rise of a seemingly underappreciated financial asset like GameStop stock has led to many on social media comparing 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 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 describe the widescale adoption of Bitcoin (BTC) as ultimately having the same result.
GameStop shares gonna be the new Bitcoin. Going all in with my pension. HODL.
— Internet Historian (@NetHistorian) January 27, 2021
In addition, a number of Redditors on the WallStreetBets subreddit — where a large part of the movement to drive GameStop share prices up took place — have written topics imagining their success with traditional stocks will…