Redditors behind the recent GameStop (GME) pump turn their attention towards Dogecoin (doge), causing the token to surge over 250% in less than 24 hours.
The Spillover Effect
Dogecoin (doge) surged over 250% as investors from r/WallStreetBets poured into the famed memecoin. The increase saw its price rise from the day’s open of $0.0074 to a high of $0.28 in less than 12 hours.
Members of the subreddit created several posts over this period, encouraging traders to buy doge after the New York Stock Exchange (NYSE) halted GameStop (GME) trading.
This comes after GME was pumped by members of the same community, causing a rally of the flailing company’s stock. Several large traditional investors, who saw the surge as an opportunity to short, had to pull out yesterday when the rally showed no signs of stopping.
Some in the crypto-community linked the GME rally with bitcoin’s (btc) dip to $30,000 yesterday. And it seems as that rally cooled off, bitcoin simultaneously reclaimed $32,000.
Doge is a Professional
With the cryptocurrency markets recovering and the traditional market dumbfounded by the power of Reddit, Dogecoin took its place as the “pump-when-meme” coin.
However, this is not the first time doge (correctly pronounced d-o-h-j) reacted to arbitrary market events. Tesla CEO, Elon Musk, who is also Dogecoin’s honorary CEO, often tweets about the cryptocurrency, causing spikes in its price.
His most recent tweet on December 20 last year, caused doge’s price to climb just under 10% in a matter of minutes. Moreover, on Christmas day, Musk tweeted out a rather memey image of a pair of short shorts emblazoned with the face of the coin’s famous canine mascot.
The Tesla CEO is also aware of the GME rally as can be seen in his latest set of tweets.
What’s Next for r/WallStreetBets?
As it stands, it looks as if both doge and GME’s rallies have cooled off. Nevertheless, there is likely to be some fallout.
With several governments and legislators worldwide calling for investigations into GME’s Reddit-fueled rally, many question what regulations this may trigger.
Some in the cryptocurrency community worry regulators may overreact, with negative effects for cryptocurrencies as a whole. However, for the most part, both the Reddit and crypto-community are savoring their “victory” against the enemy.