GameStop (GME) Hits over $150 a Share

Trying2SaveABuck on 27/01/2021 - 22:23
Last edited 30/01/2021 - 13:12 by 2 other users

Thought this might be interesting to talk about

Essentially the reddit group r/wallstreetbets has taken on some of the big fund managers

Anyone who is a international investor will know this is the biggest David v Goliath battle in ….well ever!

Literally one guy invested is up around the 22m (which hit 53m at the last opens high)

this is crazyyyyyyyyyyyy

Anyone got any thoughts?

Anyone else got rich from the madness?

For those who dont know this is essentially a dead company not to different to EB games here in Australia thats share price was $3 5 months ago and has rocketed to over $150 for pretty much no real reason other then a way for millennials to stick it to the rich pricks on wall street

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Comments

  • salmon123 on 27/01/2021 - 22:34
    +1

    Should've seen the pre-market activity earlier this evening … I think it was pointing up 200%, from yesterday's close.

    • Trying2SaveABuck on 27/01/2021 - 22:45
      +2

      It is literally possible it will hit $1000 by friday thats what the reddit is saying!

      Im not brave enough to buy it but there you go

      • [Deactivated] on 27/01/2021 - 22:55
        +2

        It's getting enough free publicity and the hatred of the shorters is there. Elon seems to be helping.

        • Trying2SaveABuck on 27/01/2021 - 23:05
          +21

          Elon is just trolling he is trying to put himself as the 'poor mans' billionaire - constantly trolling Bezos, he stays out of anything political (becuz he isnt an idiot)

          Honestly can see some idiots taking loans and drawing out there credit cards to buy GME then jumping out of windows when this crash down to earth

          • [Deactivated] on 27/01/2021 - 23:37

            @Trying2SaveABuck: What do you see happening now with Melvin Capital closing out its position. I wonder a bit why they confirmed it as that could have been their one act of revenge.

            • Scrooge McDuck on 28/01/2021 - 16:09

              @[Deactivated]: So when do we think this will reach peak hype?

              • [Deactivated] on 28/01/2021 - 16:21

                @Scrooge McDuck: There is a big milestone showdown moment after trading Friday their time. I'd check what happens overnight Friday until middle of Saturday our time. There might be some big pumping to coincide but it might all be for nothing if the shorters are truly out. Even if it fizzles from here, the potential is really exciting.

                Already this is historic with a dud company being bigger than 55 S&P 500 companies.

            • Boogerman on 28/01/2021 - 22:21
              +4

              @[Deactivated]: That report has been confirmed to be BS. Probably started by Melvin. They will be bankrupt by Tuesday

            • cannedhams on 29/01/2021 - 01:30

              @[Deactivated]: The redditors are sceptical - as you say why would they announce it? My guess is that they still havent closed or covered all their positions and they are hoping that the announcement would discourage the short squeezers and hopefully contain the damage…

              • [Deactivated] on 29/01/2021 - 17:44
                +1

                @cannedhams: The claim that Melvin closed out has been reprinted everywhere, but the first one is just so wishy washy and dodgy:

                https://m.youtube.com/watch?v=1HYBo5teFTU

                Note the guy says his fear is that retail investors might get hurt more than the hedge funds involved. Oh sure. Melvin might be hit by a US$4-8? billion loss. Who knows, could be much more. CNBC are going crazy as a near PR agent for the shorters. No retail investor spending YOLO money will be hurt more than Melvin Capital lol.

                Elsewhere reuters claim a spokesman, not Plotkin, said it but I can't really find anything on that. The redditors have studied patterns and dispute it. The thing is, no one had to tell anyone Melvin had closed out and that information was worth money if kept private. Yeah, I think it looks like a desperate kneejerk attempt by Plotkin to collapse the price.

                We should know more tonight. Hopefully carnage.

      • dasher86 on 28/01/2021 - 08:14
        +2

        It's a pump and dump from Wall Street pretending to be millenials

      • Hirolol on 30/01/2021 - 23:49

        Do you know where the original post is on wsb?

      • Smol Cat on 31/01/2021 - 01:18
        +1

        I am YOLO doubling down Monday. Worst case I lose my money, possible case I double or X multiple it.

        Literally free money lads!!

  • Baysew on 27/01/2021 - 22:35
    +18

    You Tube video explaining what is happening by Kevin Clancy - Note: contains bad language.

    • Scrooge McDuck on 28/01/2021 - 15:54
      +2

      Thanks, this should be in the OP.

    • Blue Cat on 29/01/2021 - 18:04
      +3

      Thanks, everything was clear in 6 minutes without the forced "10 minute" maximum profit youtuber requirement and product sponsorships.

  • DingoBilly on 27/01/2021 - 22:51
    +7

    Interesting to watch, but is a pretty big gamble either way.

    That original guy is pretty insane, invested pretty much his life savings into a gamble and made bank on it, but more often than not would have lost it all. Always surprises me how people can do that.

    • Trying2SaveABuck on 27/01/2021 - 23:02
      +13

      It was a massive gamble - but he essentially has won the lottery

      What surprised me is yesterday with the fluctuation he went up to 53m!! how this guy hasnt taken the money and ran is beyond me

      But maybe that is why im a broke ass regular joe working full time paying off my home loan and he has enough money to retire and live like a freaken king now…

      I mean ive been share investing for 7 years and the best annual return ive ever had is around the 18% mark…. and i thought that was good

      • sangohan on 28/01/2021 - 02:46
        +21

        how this guy hasnt taken the money and ran is beyond me

        if he had the mindset to take profit, he would also have never made this bet in the first place.

      • Iam12 on 28/01/2021 - 17:38
        +4

        He's taken a bit over 13 mil profits out of the 50 he has now.

        • RocketSwitch on 28/01/2021 - 23:30

          What makes someone do that is beyond me. Either a smart cookie or someone who thought f the rat race. I kind of agree with him. I am not ballsy enough to do that though. I guess he is a genius in hindsight lol

      • Ahbal on 29/01/2021 - 20:25
        +2

        if he sells all of it he loses all possibility of it being worth even more. If he sells part of it and keeps the movement going even for another few days, he could very well increase it further

        • Trying2SaveABuck on 31/01/2021 - 00:20

          Honestly 53m he got up too how much money do you need?

          Keep in mind that is USD so in AUD its like ~72m

          His life savings to begin with that he put in the original GME stocks was a m around ~750k

          At this point just on the interest alone on 52m he would be getting around 500k USD a year….

          • cybapete on 31/01/2021 - 06:36

            @Trying2SaveABuck: tell that to the hedge funds 53m is a drop in the ocean to them

          • frostman on 01/02/2021 - 13:04

            @Trying2SaveABuck: This other guy on WSB posted a pic of his trading account,

            $93K invested, and current balance was like $773,650.00 (USD!)

      • Smol Cat on 31/01/2021 - 01:20
        +1

        Look at Mr Paperhands here. Ain’t ever going to get rich if you don’t YOLO your life savings on big risk gambles. Literally free money - it’s that easy kids.

    • [Deactivated] on 28/01/2021 - 07:51
      +27

      Survivorship bias. We love to latch onto stories of people who seem to magically get rich.

      Then ignore people who did exactly the same thing on a slightly different bet and lost it all.

  • Caped Baldy on 27/01/2021 - 23:11
    +19

    WSB have potentially killed a $13 billion usd hedge fund. Bloody amazing.

    https://old.reddit.com/r/wallstreetbets/comments/l60euz/theo…

    • [Deactivated] on 28/01/2021 - 07:58
      +14

      Which goes to prove you're playing in a casino. The fundamentals of investing (valuing a company for its dividend or future expected dividend) have long gone.

      Now you're in an environment where volume of capital and leverage are used to bully/push the opposition into a point where they have to go all in and potentially lose it all and then have to walk away from the table.

      Most home investors have only a small amount to play with, so they tend to run out before the big institutional investors who, like the house, can wait out your small gains until you lose again and have to walk away.

      In this case social media caused the small home investor to collect in large numbers to bully the leveraged institutional investor for a change.

      If I had to put a long term bet, however, it is on the institutional investor coming back. But sometimes I wonder who is behind these social media campaigns. Like most viral YouTube videos which are all professionally made, perhaps some billionaires are behind the WSB ruckus…

      • Caped Baldy on 28/01/2021 - 08:08
        +3

        Yeah, screw short sellers.

        It's been proven that Elon has been checking discord and maybe WSB. Not surprising that as he's been a target of short sellers for around five years.

        • Telios on 28/01/2021 - 13:24
          +5

          I don't think the ability to short in itself is the problem.

          Its just man-in-the-middle type of profit making, essentially a slower version of HFC.

          But the fact the SEC doesn't crush these hedge funds that are naked shorting is insane since its illegal.

      • coffeeinmyveins on 28/01/2021 - 11:11
        +2

        I find it hard to believe a bunch of guys on a reddit forum are behind all of this. There has to be more to it than this. Perhaps even WSB and the meme culture of betting on things is just a charade and is being run by some organisation to make huge amounts of money off idiots who think they're part of something they're not.

        • Caped Baldy on 28/01/2021 - 14:31
          +1

          That's my thoughts behind the big surge in bitcoin a few years ago.

          • Bren20 on 29/01/2021 - 07:46
            +3

            @Caped Baldy: Bitcoin is hitting peaks 100% higher than when it was 'peak crypto', to almost no news coverage

        • Smol Cat on 31/01/2021 - 01:22
          +1

          I doubt you’re a regular of that sub as you sound like you have no idea wtf /r/wallstreetbets is even about. But you sure have a strong opinion about something you know very little about - seems typical these days.

      • xdigger on 28/01/2021 - 23:31
        +1

        infy I agree with your sentiment. Strip away the Reddit overlays, this GameStop play is nothing more than a textbook classic pump and dump of what's otherwise a penny stock.

      • cannedhams on 29/01/2021 - 01:34
        +8

        If youve hung around reddit for any length of time, you'll know this is a blue moon event. Generally its like herding cats. The guy is just lucky that enough peasants rallied behind him and for long enough. Generally peasants spook and run pretty easily.

        I am happy to see it done. Someone realised that Melvin was vulnerable to a short squeeze, any large house could have played the same game, but its nice to see the little guys clean up once in a while.

      • Skinnerr on 29/01/2021 - 01:57
        +3

        This is poetic justice for the '08 crash and '10 occupy wall street loons haha.

      • diddy50 on 29/01/2021 - 09:27

        Not even a casino.
        With a casino you know the odds of the House. But with shares there are no odds so it's worse than gambling.

        • Jules_d1 on 29/01/2021 - 15:02
          +3

          if you dont know the odds…then that means they MIGHT be in your favour?

          soyouresayingtheresachance.jpg

      • cybapete on 31/01/2021 - 06:42

        not to mention institutional investors have bots buying and selling shares in milliseconds
        if a home investor sees an opening by the time their order goes through the chance is gone

  • lunchbox99 on 27/01/2021 - 23:21
    +24

    I read this description on reddit earlier tonite:

    An individual investor might have the capacity to short it, but stock itself does not. The stock is already in a state of "over sold" which means the short sellers have literally borrowed more shares and sold said shares of the stock than what actually exists. At some point they have to buy to cover. And the higher the price goes, the more
    Guess what happens on Friday? A bunch of options come due. Not a small amount either. A large amount, which due to the current price are now "in the money". All of those would be worthless if the stock was at it's "appropriate" price of 20 dollars a share.
    And the higher the price of GameStop at close of friday, the more of shares of gamestop that the institutions underwriting the shorts will force the people in short position to purchase at whatever price they can find. When this happens, it's called a short squeeze (where shorts are forced to sell but other investors have bought up all the available shares to buy so they have to pay an exorbitantly higher price causing the shorts to lose a crap ton of money).
    So specifically in this situation, the shorts (mostly a single billionaire hedge fund called "Melvin") and r/wallstreetbets (mostly autistic redditors in this for fun, profit, and sticking it to greeding hedge funds) are in a game of chicken with the gamestop stock. Except Melvin doesn't realize that the WSB side are happy to be irrational in buying decisions and buy at 150 when the stock is worth 20 based on rational measures of stock worth just to squeeze those shorts for every dime they have for being greedy.
    Oh, and when I say "short squeeze", don't discount it like some middle of the road short squeeze of some 100 mil or so. It's lining up to be the "short squeeze" super nova of the century. If WSB can hold the line, Melvin is going to to lose 10-100 billion over this. Friday, after close, gamestop stock price may, for one brief glorious moment, become the most valuable company in the world. Think above 1000 a share.
    Also, Elon Musk just tweeted recognition of the short squeeze with the single word "gamestonks" shortly after close and the overnight price of gamestop went from 115 to 240. (stonk is a term of affection for "stocks" in the WSB subreddit).
    Get ready for Friday. There will be fireworks.

    • netjock on 28/01/2021 - 01:06
      +3

      Pretty typical.

      Melvin: don't sell stock that you don't have. They won't be the last idiots because investors will never learn giving money to a "successful" fund and thinking it is going to be alright because they are pros.

      Retail investors: what happens at the pointy end when all the shorts and squeezed out and you run out of people willing to buy given the little earnings that there is.

      It happened to Porsche in a short squeeze

      • lunchbox99 on 28/01/2021 - 08:36
        +7

        Yeah I can't help but think those on WSB encouraging people to keep buying at 347 are just looking for a stooge to sell their shares to and get out.

        • whooah1979 on 28/01/2021 - 09:10
          +7

          Noobs getting rekt is a badge they have to earn before they're allowed to enjoy future gains.

  • marquise on 27/01/2021 - 23:36
    +2

    I bought 1 share of GME at 106 and had a limit order to sell at $150 which filled overnight lol.

    I'm also in some call options for AMC, BB, FUBO. AMC $3 March call option is now very deep ITM, with share price reaching $14 in premarket. I suspect there's more to come from these if WSB craziness continues.

    • plmko on 28/01/2021 - 00:00
      +17

      What's the point of buying GME then to put a limit order on $150? You've taken on extreme risk for very little upside and made worse that you've done it to yourself. To play GME you have to let it run and have the mind set that anything you put in is sunk.

      • marquise on 28/01/2021 - 00:11
        +19

        Because I'm happy with ~$50 profit and only partially a degenerate.

        • salmon123 on 28/01/2021 - 00:36
          +5

          How much did you spend on round-trip brokerage for that 1 share?

        • tik tok on 29/01/2021 - 11:11
          +4

          Not really a ~$50 profit. After CGT makes it about ~$35 profit (depending on taxable income). Not bad though.

          • [Deactivated] on 30/01/2021 - 18:55

            @tik tok: Not everyone pays CGT. Temporary residents and New Zealanders in Australia are exempt [when the underlying asset is outside Australia].

            • Gaxx on 01/02/2021 - 01:05

              @[Deactivated]: Temporary residents and New Zealanders in Australia are exempt [when the underlying asset is outside Australia].

              Do you have a link for that? Do you mean "permanent residents from NZ"?

              • [Deactivated] on 02/02/2021 - 09:10

                @Gaxx: I mean New Zealanders on a Special Category Visa. Upon acquiring residency or citizenship, the exemption dissipates as it's a feature of taxation law designed to recognise the reduced services available to temporary residents, and make Australia an attractive place to take up temporary residence.

                Have a read of the example on this page to understand the implications: https://www.ato.gov.au/General/Capital-gains-tax/Internation…

                The actual rules are in the ITAA s768.900-s768.980. The ITAA is so long it actually contains summary blocks - so you can save time by reading s768.900 which is the legislative equivalent of the TL;DR.

        • Smol Cat on 01/02/2021 - 13:20
          +1

          This some real loserish small thinking. Zero guts, zero glory for you. Enjoy them beans lool

    • crentist on 28/01/2021 - 02:50
      +1

      Where are you getting options from? I don't see them offered by Aus brokers

      • marquise on 28/01/2021 - 03:29
        +3

        Interactive Brokers

        • xdigger on 28/01/2021 - 23:34

          Do a AMA on trading on IB thanks

          • Skinnerr on 29/01/2021 - 02:57
            +5

            @xdigger: IB - InstaBargain.

            • [Deactivated] on 31/01/2021 - 09:04

              @Skinnerr: what do you mean? why do you have over 3 upvotes?

    • Smol Cat on 31/01/2021 - 01:25
      -1

      Lmao look at Mr weak paper hands here. Taking a measly 50% profit for 1 single share…. what peasantry is this?? This is why you will never hit the jackpot and strike it rich. Zero appetite for risk.

  • mizx on 28/01/2021 - 02:48
    +10

    🚀🚀🚀

  • Maglia Nera on 28/01/2021 - 08:02
    +6

    now at ~$354/share

  • whooah1979 on 28/01/2021 - 08:25

    Playing the markets is by far the 👍 game in town.

  • mizx on 28/01/2021 - 08:32
    +7

    In case you haven't seen it.

    • SnowDragon on 28/01/2021 - 11:56

      The man, the myth, the legend.

    • RocketSwitch on 28/01/2021 - 23:35

      Amazing isn't it?

  • Bid Sniper on 28/01/2021 - 09:45
    +10

    Christ its free money, they're totally stealing from the Rich and I love it

    • Stopback on 28/01/2021 - 14:41
      -3

      by rich (individuals which have money invested from peoples super/investments) then yeah they are the rich

      • MatrixM on 29/01/2021 - 19:08

        Right cos everyone knows supers put everything into high risk short term hedge funds…

        • hayne on 30/01/2021 - 02:55
          +1

          Spoken like someone who has no idea what they’re talking about.

          Pretty much every super fund allocates somewhere between 8-15% of their funds under management to alternative investments of which hedge funds are one asset class.

          Put it another way - the vast majority of hedge fund money usually comes from super funds/pension funds and university endowments. The hedge fund manager puts a bit of skin in the game and maybe he has some HNWs in there as well.

          For hedge fund managers, it’s asymmetric risk. If things go well, they make a killing, If things go south, the institutional investors lose their money. So the mums and dads with money in super funds that invested in Melvin will lose out. For Gabe Plotkin (founder of Melvin Capital), he loses whatever he has in the fund (maybe 5-10% of his net worth) and maybe he never raises a fund again. Since he’s worth $300m according to Forbes, he’s probably still doing pretty well.

          So the people who get disproportionately screwed are those mum and dad investors who got in too late and lost money (and there are many more who will still lose money once the share price goes back to fair value) and those who are unlucky enough to have super funds that invested in the hedge funds involved. A handful of rich people get screwed, some lucky redditors make money, but way more average Joes get screwed. So even when you think you win - you lose.

          • MatrixM on 30/01/2021 - 17:55

            @hayne: I'll admit, though I expected 5-10% super allocated to hedge funds, I did not expect hedge funds to be primarily funded through supers.

            • [Deactivated] on 30/01/2021 - 19:01
              +3

              @MatrixM: You're also missing that overleveraged hedge funds will have to close out other positions to prevent being margin called or liquidated, and that drops the price of literally every other stock on the market. Have you seen the rest of the DJIA lately? Or even the ASX? It's a bloodbath, because the overleveraged hedges are literally having to sell pretty much everything to prevent going under.

              To me, though, I see that as more of an indicator of just how badly this house of cards is structured - short selling shouldn't even be legal, did you know that in the US, CFDs (where you bet on an increase or decrease in the underlying value of an asset by leveraging even past the hilt - we're talking like 300:1 leverage or higher) are illegal? Yet another asset class that's basically the same, short sold stocks, is perfectly OK, but only for rich investment funds? And if you manage to find a way to bet against the investment funds like happened here, they flip the table over?

              • whooah1979 on 30/01/2021 - 19:43

                @[Deactivated]:

                It's a bloodbath, because the overleveraged hedges are literally having to sell pretty much everything to prevent going under.

                👍. It's about time the suits get a dose of their own destruction.

      • [Deactivated] on 31/01/2021 - 11:06

        You can buy stock for like under 50$ so you don't even have to be "rich".

    • p1 ama on 30/01/2021 - 00:25
      +3

      Christ its free money, they're totally stealing from the Rich and I love it

      It's not free money. It's only free money because you're looking at it retrospectively. It's the same as saying that purchasing Amazon 10 years ago is free money…etc.

      In this case, there was a huge risk involved and we're only talking about it because the story worked out this way. For every guy who won big on this, there are countless other guys who've lost these bets.

      Also, regarding the "stealing from the rich", yes and no. The guys who got in early definitely profited, but in the long run, as GME crashes, it will be the small guys who bought in at 350 or whatever who will take the biggest fall.

  • whooah1979 on 28/01/2021 - 10:00

    Gamers can now long or short GME on Injective Protocol.
    https://twitter.com/InjectiveLabs/status/1354549159114780672…

    • Leeroy Jenkins on 30/01/2021 - 00:37
      +2

      I don't know who downvoted you, but things like this is the future. Decentralised exchanges that use blockchain tech will be huge from this year onwards. This is our only shot for having a level playing field with those big criminal players.

      • [Deactivated] on 30/01/2021 - 19:33

        Maybe so, but if the guys holding the short positions that will result in the squeeze aren't holding the short position on this alternative blockchain exchange, then there's literally no point in bothering. The value of GME on the NYSE has inflated not due to the company's fundamentals (though some analysts say the fair value if they can turn around the business is much higher than Melvin was banking on) but supply and demand - as in, over the next few weeks, the retail investors hold all the supply that the short funds demand to close out their positions. Not so on this "Injective Protocol" where the only demand is from people who've been convinced that buying a file with "GME" written on it has any meaning.

        • Leeroy Jenkins on 30/01/2021 - 21:21

          I think you missed the point of Defi.

          The point is that we need a free market, Everyone should be playing the same rules. That's simply not what we have at the moment.

          If these hedge funds are shorting the shit out of a company, destroying this company to make money, which I think should not be allowed (how the (profanity) are you supposed to be able to short 140% of a companies shares), the retail investors have every right to buy the shit out of it, but now they can't. Exchanges are favouring these big players. They are making unfair rules so that the big players don't lose.

          What if the ones losing are the retail investors? Of course it's fine, keep on buying and selling! No problems! This has always been the case!

          If Robbinghood were a decentralised exchange, they would not be able to disable buy function on these stocks. No central authority controls the exchange, that's how Defi works.

          It's not about a particular stock, it's about a truly free market.

          • [Deactivated] on 30/01/2021 - 21:34

            @Leeroy Jenkins: Hard to miss the point where there isn't one.

            The whole point of the stock market (fundamentally, rubbish like short selling notwithstanding) is for businesses to raise capital, and for investors to be able to supply that capital in exchange for some skin in the game (voting rights, etc) and a share in the profits (dividends).

            These "DeFi exchanges" don't actually trade any of those things - you may buy a "DeFi GME Stock" but it has no underlying value. It entitles you to no voting in the company's direction, and it entitles you to no dividends. There is no underlying listed stock that entitles you to anything - it's literally just a shiny file with the name of an unaffiliated company on it. A company can't even list its own ticker on these exchanges, because that would be illegal under securities laws. Basically, they're an even worse ponzi scheme than the actual stock market.

            Do I think the actual stock market as it currently stands is fair? No. Do I think the rules should be changed to level the playing field? Absolutely. Do I think "decentralised finance" is the answer? Shit no. It's bad enough when there are rules, turning the stock market into a totally unregulated free for all sounds more genuinely stupid than the entire Gamestop fiasco.

            • whooah1979 on 30/01/2021 - 22:23
              +1

              @[Deactivated]: People used to trade derivatives on paper. They then started to trade over the phone using a landline. After that came computers at exchanges and internet trading when that was available. Then came Etrade, Etoro and Robinhood apps.

              The next step in the technology of financial instruments may be on a ledger using WEB 3.0 and Dapps. People won’t even know that they’re using this technology when that happens. Assets that can be tokenised will be on either a hybrid, centralised or decentralised ledger somewhere in the world.

              • [Deactivated] on 30/01/2021 - 22:31
                -2

                @whooah1979: Lots of words, but totally meaningless. You've addressed exactly zero of the fundamental points of what the stock market is, or why "DeFi Exchanges" are literally just ponzi schemes.

                People are already trading on a centralised ledger. It's called the stock market.

                • whooah1979 on 30/01/2021 - 22:40

                  @[Deactivated]: The stock market is a database of 0 and 1. It’s just another financial instrument with only one purpose and that is to make gains.

                  • [Deactivated] on 30/01/2021 - 22:47
                    -2

                    @whooah1979: What does that even mean? A distributed ledger is also just a database of 0 and 1, a financial instrument with only one purpose, which is to make gains. Your entire point is utterly unintelligible.

                    You seem to use a lot of words to say nothing.

                    • whooah1979 on 30/01/2021 - 22:52

                      @[Deactivated]: I was typing while you edited your post.

                      • [Deactivated] on 30/01/2021 - 22:52
                        -2

                        @whooah1979: It took you 10 minutes to write a sentence? Likely story.

                • Leeroy Jenkins on 31/01/2021 - 12:15
                  -1

                  @[Deactivated]: Point is, companies can sell their stocks on these decentralised exchanges. They are not doing that now, but that doesn't mean they can't in the future.

                  • [Deactivated] on 31/01/2021 - 13:58

                    @Leeroy Jenkins: No, they can't. That would be illegal under securities laws, which prohibit them selling on anything but a regulated, licensed, exchange.

                    • whooah1979 on 31/01/2021 - 14:24

                      @[Deactivated]: The DEX isn't selling registered securities. They're peer-to-peer platforms for exchanging price-pegged tokens. Neither the SEC, CFTC, OCC, USDT, FTC, NYAG, FBI, CIA, NSA, DHS or any other three or four-letter regulatory or law enforcement agencies have the power to restrict or prohibit these platforms from operating.

                      It would take an amendment to the US Constitution to make it unlawful.

                      BTW Leeroy Jenkins uses the word stocks which is the wrong term. They're price-pegged tokens.

                      • [Deactivated] on 31/01/2021 - 14:34

                        @whooah1979: Right, which is why companies can't list on them, and they achieve none of the points of the stock market - you invest no capital into the company, gain no voting rights, no entitlements to dividends, and basically have no connection with the companies whose names are being tagged onto these tokens without their consent.

                        And if what you're saying about them being price pegged is true, then they are still subject to Wall Street's manipulation, since the price is pegged to an asset that they (purportedly, Gamestop notwithstanding) control the price of, since the token cannot affect the stock price.

                        With your description, it sounds even more worthless than before?

  • brad1-8tsi on 28/01/2021 - 10:25
    +5

    The number of new investors is frightening. Especially those that "are going to hold this share forever".

    There will be some tears.

    • coffeeinmyveins on 28/01/2021 - 10:32
      +1

      They're doing it because they have no idea how things work and they're seeing posts from trolls on /r/WSB saying the stock will go to $10k. Some of these idiots are planning their retirements at being millionaires, not realising what is likely to happen.

      • brad1-8tsi on 28/01/2021 - 10:36
        +6

        It's dutch tulips / poseidon / Japanese real estate / dotcom / US real estate all over again

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