Cryptocurrency exchange FTX has listed GameStop, a global video game retailer, after shares became the most popular choice on Wall Street Bits Reddit, a community dedicated to stock trading.

The FTX listing on Wednesday morning also allows cryptocurrency traders to participate in the campaign. The offer is part of the FTX token share program, which includes both spot markets, stock futures and popular indices. This gives cryptocurrency traders access to stocks using cryptocurrencies and stack coins, as well as monetary options.

GameStop shares, which trade below the GME index, have received a lot of media attention after a sharp rally that has seen shares rise more than ten times since 12 January.

The rally is largely associated with Wall Street Bets, which is a base for stock market traders. GameStop has long been one of the community’s favorites, although it has played alongside other fast-growing stocks such as Tesla or Nio.

GameStop itself has been in serious financial difficulties for a long time, as the supply of digital video games has steadily weathered the business market in recent years. The COVID-19 locking has worsened the company’s prospects.

These factors probably influenced Melvin Capital Manager’s decision to sell the shares, and are betting that the share will fall. Unfortunately for the company, someone from Wall Street Bates discovered this short position due to the mandatory disclosure with the Securities and Exchange Commission.

Subreddit then went up to acquire the stock in a concerted effort to throw out the sale – which forced the price so high that the sale had to be wound up. After GME crossed $ 320 in pre-market trading, it appeared that the Redditors had succeeded in their mission when the hedge fund announced that it was closing its position.

The failed deal has reportedly caused the fund to lose $ 3.75 billion since the beginning of 2021, representing more than 30% of its capital. Other hedge funds saved Melvin Capital Management with an investment of $ 2.75 billion. However, some details of the story are unclear. For example, the original short position Redditors discovered was only $ 55 million in put options. Losses from call options are limited to 100% of the value, which may mean that other positions have contributed significantly to a loss of billions of dollars.

This story has a very similar analog in the crypto space. In the summer of 2020, the Chainlink community opposed the announced short-term deal opened by Zeus Capital. The details of this incident led many to question the true motives behind the alleged shortcut.

At the time of writing, GME is down more than 33% since it was included in FTX.

Source: CoinTelegraph

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