• About Us
  • Privacy Policy
  • Contact Us
CryptoInfonet
  • News
  • Bitcoin
  • Ethereum
  • Blockchain
  • Altcoin
  • Regulation
No Result
View All Result
  • News
  • Bitcoin
  • Ethereum
  • Blockchain
  • Altcoin
  • Regulation
No Result
View All Result
CryptoInfonet
No Result
View All Result
Home Market

Wall Street, Big Tech Clamp Down on GameStop-Style Pumps; Biden Admin ‘Monitoring’ Situation

January 28, 2021
in Market
0
Wall Street, Big Tech Clamp Down on GameStop-Style Pumps; Biden Admin 'Monitoring' Situation
Discover This New Unique Trading Pattern This Powerful Tool Spots Over And Over Again With Precision Accuracy. You Could Double Or Triple Your Account This Year With These Signals!
Click here
to sign up


Wall Street wants to stop stocks from trading like cryptocurrencies.

An active Reddit-based trading community is causing more equities to behave like characteristically volatile cryptocurrencies amid an ongoing campaign of monstrous short squeezes. In response to abnormal market behavior, brokers and other financial service providers are threatening to cut off trading access to “limit risk.”

Self-described as “like 4chan found a Bloomberg Terminal,” the Wall Street Bets (WSB) trading community on Reddit wreaked chaos in traditional markets after pumping GameStop (GME) nearly 900% in five days to around $380 Wednesday morning. And the mayhem is spreading.

Other heavily shorted stocks such as BlackBerry (BB) and AMC Entertainment (AMC) have seen triple-digit percentage gains in the past couple weeks as WSB traders set their sights on these companies. Even Eastman Kodak (KODK) shot up nearly 50% Wednesday, briefly trading near $14 after closing trading on Tuesday below $9.50.

Short selling is a bet that the price of GameStop stock will go down.

Other companies including Tootsie Roll (TR) and National Beverage Corp. (FIZZ) are also among the most-shorted stocks by hedge funds, per data from CNBC, making them possible WSB candidates in the future.

The long list of worries and problems this irregular market activity is causing includes inflicting heavy financial losses at hedge funds such as Melvin Capital, which held a large short position on GameStop. The fund finally capitulated and closed its position Tuesday after taking a “huge loss,” CNBC reported.

The Reddit trading community cheered. But trading services are reacting sternly to the chaos.

After tweeting about “unprecedented volumes” that “may be causing limited acess,” TD Ameritrade simply restricted client trading for GameStop, AMC and other securities “in the interest of mitigating risk for our company and clients.”

Nasdaq CEO Adena Friedman told CNBC Thursday her firm actively monitors social media chatter and will halt stock trading if the content it sees matches with “unusual activity in stocks.”

Bloomberg reported that Wells Fargo also banned its advisors from making stock recommendations on GameStop and AMC Entertainment.

Government officials and regulators are also watching. The Biden Administration’s economic team is “monitoring the [GameStop] situation,” White House Press Secretary Jen Psaki told reporters Wednesday afternoon. The Securities and Exchange Commission (SEC) also released a statement Wednesday evening saying they are “aware of and actively monitoring the on-going market volatility in the options and equities markets.”

Social media accounts used by members of the Reddit-spawned group have been shut down or limited. Discord banned the group’s server, ostensibly for hate speech, Wednesday evening, claiming that it has issued multiple warnings to the server admin “over the past few months,” per reporting by The Verge.

The group’s epicenter – r/wallstreetbets – was switched from public to invite-only around the same time, although a Reddit spokesperson told CoinDesk the company did not initiate the settings change. The group’s moderators did, the spokesperson said.

However, a new public Wall Street Bets-branded subreddit was quickly spun up, and a self-described splinter group formed on the Telegram messaging service, highlighting the community’s determination to reorganize regardless of external pressure.

Cryptocurrency investors are capitalizing on the craziness to highlight a potentially universal use case for trading and financial services that cannot be limited or subject to similar crackdowns. Galaxy Digital (GLXY) CEO Mike Novogratz took to Twitter to say the WSB episodes are “a giant endorsement” of decentralized finance. But whether these rogue traders will show any interest in blockchain-based products remains an open question.

Interactive Brokers Chief Strategist Steve Sosnick called short sellers, in general, a “curious bunch” who profit through “courage and careful research.” But as the WSB saga continues, he warned, “many” could quickly “find themselves swamped.”

“No one can withstand […] an investor tsunami aimed at short sellers,” Sosnick said.

UPDATE (Jan. 27, 19:18 UTC): Adds new information of monitoring by President Biden’s economic team.
CORRECTION (Jan. 27, 19:44 UTC): Corrects headline to note TD Ameritrade has restricted trading, not halted it.
UPDATE (Jan. 27, 23:14 UTC): Adds new information of the SEC’s statement.
UPDATE (Jan. 27, 23:48 UTC): Adds new information of the Wells Fargo’s recommendations ban.
UPDATE (Jan. 28, 00:32 UTC): Adds new information about Discord and Reddit forums.

Forex Trading can be risky, to cut the risk. Sign up to FX Delta for consistent results. The Best Forex trading signals for an average of 8% gains. Click here to sign up.



Source link

Tags: AdminBidenBigClampGameStopStyleMonitoringPumpsSituationStreetTechWall
Share76Tweet47

Related Posts

Bitcoin’s Price Surge Accelerates After Passing Milestone of $1T Market Value

Bitcoin’s Price Surge Accelerates After Passing Milestone of $1T Market Value

by CryptoInfoNet
February 19, 2021
0

Bitcoin’s recent price surge pushed the largest cryptocurrency past $1 trillion in market capitalization, a threshold that might prove to...

Who ISN'T Dabbling as Bitcoin Passes $52K, Ether Tops $1,900

Who ISN’T Dabbling as Bitcoin Passes $52K, Ether Tops $1,900

by CryptoInfoNet
February 18, 2021
0

Price PointBitcoin (BTC) was lower after surging on Wednesday to a new all-time high price above $52,000, while ether (ETH)...

Ether Looks Overleveraged as Cryptocurrency Hits New High Over $1,900

Ether Looks Overleveraged as Cryptocurrency Hits New High Over $1,900

by CryptoInfoNet
February 18, 2021
0

Ether soared to new record highs Thursday, but an overheated derivatives market may suggest higher volatility is on the way...

Market Wrap: Bitcoin Rallies On After Passing $50K Psychological Level to $52K

Market Wrap: Bitcoin Rallies On After Passing $50K Psychological Level to $52K

by CryptoInfoNet
February 17, 2021
0

Bitcoin broke above $52,000 Wednesday, with a market capitalization nearing $1 trillion.Bitcoin (BTC) trading around $52,231.69 as of 21:00 UTC...

Ajit Tripathi: How to Bring Off-Chain Assets to DeFi

Ajit Tripathi: How to Bring Off-Chain Assets to DeFi

by CryptoInfoNet
February 17, 2021
0

The recent GameStop short squeeze has brought decentralized finance (DeFi) into mainstream public consciousness. Well-known crypto influencers such as Caitlin...

Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

We have all the latest updated and legitimate information related to Blockchain, Cryptocurrency, latest market rates & trends, prices, new regulations along with every other thing that somehow related to crypto or digital currency market. Our main idea is to provide the kind of news that is original and at the same time, it can prove to be beneficial for our audience.

Categories

  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Litecoin
  • Market
  • Regulation

Archives

  • March 2021
  • February 2021
  • January 2021
  • About Us
  • Privacy Policy
  • Contact Us

© 2021 cryptoinfonet.com

No Result
View All Result
  • News
  • Bitcoin
  • Ethereum
  • Blockchain
  • Altcoin
  • Regulation

© 2020 cryptoinfonet.com

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Go to mobile version