Reddit customers’ concentrating on of Dogecoin, a cryptocurrency named after an web meme, seems to share little of the logic behind the GameStop shopping for frenzy, the place a military of DIY buyers sought punishment for hedge funds “shorting” or betting towards the inventory.
Will, a finance skilled and energetic member of the WallStreetBets discussion board who wished to stay nameless, mentioned Dogecoin’s joke standing was behind its enchantment to Reddit customers.
“Dogecoin was made as an antidote to the very critical Bitcoin. New cash may be created which reduces its worth in idea, in contrast to Bitcoin the place provide is fastened, they usually value subsequent to nothing in contrast with Bitcoin’s excessive worth per coin, so it’s not a really critical cryptocurrency. It’s linked to an web canine joke,” he mentioned.
He mentioned jokes have been central to the Reddit subculture and helped clarify why members of the neighborhood had congregated round sure shares.
“Having excessive conviction in a single commerce accompanied with a ‘you solely stay as soon as’, or Yolo, perspective after which sporting the good points or losses as a badge of honour on-line is the a part of the explanation why seemingly random shares surged final week,” he mentioned.
“The GameStop and Dogecoin story is about taking management of funds and having enjoyable with it. The road is blurred between video games and actual life.”
Will mentioned “meme” investing was right here to remain and buyers wanted to understand its importance in the event that they needed to generate profits from momentum shares.
“Should you see patterns early, you can also make cash. Joke shares or cryptocurrencies doesn’t imply critical buyers mustn’t comply with them. I verify WallStreetBets each morning,” he mentioned.