WallStreetBets Reddit Community Eyes Dogecoin, Robinhood Bans DOGE

The crypto market has stirred on the information that the Reddit WallStreetBets neighborhood behind the GameStop inventory pump has set its sights on Dogecoin (DOGE). 

This morning, a moderator made it clear that the group won’t be taking part in “blockchain shit.” Nonetheless, Dogecoin’s close to 100% features since yesterday have raised hopes that crypto’s favourite troll coin might be the following GameStop. 

WallStreetBets Looking out For Subsequent Goal

Retailer merchants led by Reddit’s WallStreetBets neighborhood took Wall Avenue without warning after efficiently cornering hedge funds out of their GameStop shorts. After yesterday’s price carnage that brought on $5 billion in liquidations, GME has continued its irregular rise to $501 this morning within the pre-market hours—a whopping 2500% rise since Jan. 1.

The markets have realized {that a} well-timed social motion can convey astronomic outcomes since retail merchants appear to have loads of energy at their disposal. 

Low-valued property are easy targets for retailers, beginning off with psychological benchmark targets resembling a $100 valuation of GameStop inventory (GME) or in $1 DOGE. The Robinhood inventory buying and selling app has now reportedly banned users from buying GME in an effort to curb the impression of retail customers on inventory market value motion, infuriating its userbase.

Robinhood, the place we “steal from the wealthy and provides to the poor!” Wait, no, not like that… alright too actual, shut it down of us

— Grandmaster Trash: Precise Trash Solely (@ExactTrashOnly) January 28, 2021

With GameStop off the desk, WSB is now trying elsewhere for its subsequent goal.

A Twitter account allegedly related to WSB casually remarked about Dogecoin this morning. The tweet is probably the reason for a 99.1% enhance in DOGE value. The worth spike came about over the course of only one hour final night time at 23:00 hours ET, with DOGE surging from $0.007 to a peak of $0.147. 

WSB moderators have indicated that Dogecoin just isn’t their goal, however the higher neighborhood could have had different plans. Nonetheless, whereas crypto merchants are more and more rising hopeful of repeating GameStop inventory value motion with Dogecoin, it appears more and more unlikely.

Robinhood Halts Dogecoin Buying and selling

Robinhood has reportedly banned DOGE buying and selling earlier at present, maybe beneath strain from Wall Avenue and associated events.

RobinHood has disabled the flexibility to purchase Dogecoin.

— Documenting Disruption (@DocumentingBTC) January 28, 2021

Inside hours of the GME ban, the DOGE ban is more likely to show simply as inflammatory amongst Robinhood customers. Many commentators have identified the obvious hypocrisy behind Wall Avenue merchants having ongoing entry to GME whereas the retail neighborhood has successfully been shut out, with Robinhood being one of many primary gateways for non-accredited merchants to the inventory market.

Within the quick time period, the buying and selling bans have dealt a blow to retail merchants in all places. Nonetheless, the app seemingly caving to Wall Avenue strain will maybe trigger them to search for choices which are much less centralized and beholden to mainstream market forces. With Dogecoin now on the WSB neighborhood radar, it’s potential {that a} smaller pump will nonetheless happen by crypto exchanges.

This isn’t the primary try at a social media backed run in Dogecoin. Not way back, TikTok users had tried an analogous feat, and Elon Musk’s recent DOGE tweet additionally led to a value pump.

Nonetheless, there is a vital issue of opposing aspect liquidity lacking in Shiba Inu meme-based cryptocurrency. Whereas hedge funds held GameStop shorts resulting from their poor enterprise efficiency, Dogecoin shorts are removed from being fashionable in the intervening time.

Disclosure: The creator held Bitcoin on the time of press.