We do know what and who is Wall Street, we also do know who and what Reddit is, but, Gamestop?
GameStop is an American video game, consumer electronics, and gaming merchandise retailer.
But you do know that I mostly talk about cryptos...why am I writing a whole article about a video game.
Well, this is still about finance and the thing you're about to read is going to show you what can a community do if they join together to achieve the very same purpose.
Before we go into more details let's explain what "SHORT" is!
Short is when a trader borrows a stock or a crypto from a broker and what he\she intends to do is selling that asset immediately and waiting for it's price to drop so he/she can buy it again and give the borrowed asset back to the broker and keeping it's interest.
This means if the seller sold a stock for 100 euros and bought it back when it dropped to 50 euros he/she makes 50 euros profit and pays back the borrowed asset.
If it goes the other way around...the seller owes that amount to the broker.
Now let's get back to the Gamestop fuzz.
It all started when a writer in Reddit found out that a hedgefund had bought a huge amount of "short" stocks in Gamestop. This author in a way convinced a considerable amount of people to buy as much Gamestop stock as possible so they make the price to go up.
What did they achieve is remarkable!
The GameStop price rose more than 300%. That costed more than $13.1 Billion...
Why did they do this?
Middle range and poor people get poorer and the richer get richer no matter how economy crashes. It seems that people just started understanding this and hating it so the did what they could.
Now let's see the how the price is doing!
There is not much history here, but history was made.
Price is holding in the support zone at 236$ what will happen next is gonna be interesting and this pair is going to be interesting. I will actually add this to my watchlist and keep regular updates.
Community is way much powerful than anyone else...we all have to be aware of that.
Let me also suggest you to watch this movie: V for Vendetta