GameStop has notified customers that it's shutting down its NFT market, effective February 2. The marketplace launched in July 2022. GameStop also shut down its year-old crypto wallet in November, citing "regulatory uncertainty."
Only sorta. I’m not sure how much they are right about the crookedness of the market - it’s just that retail investors are at a severe disadvantage to institutional ones.
What they did do was create a short squeeze for a bunch of folks (rightly) betting that GameStop is overvalued because it’s a shit company with no real path to an increasingly digital market.
The problem, basically, is that the people saying “buy Gamestop” originally were people who figured “Hey, this stock is probably slightly undervalued.” As in, this is $2 but it could probably climb to more like $2.50 or $3 over the next five years.
Then WSB started to meme the thing like crazy, because WSB are a bunch of degenerate gamblers who don’t give a fuck about actual sensible investment strategies, which created the conditions for a short squeeze, which pulled in a bunch of newbie retail investors who drove the squeeze even higher, but were given absolutely no realistic expectations about what that would look like.
I was one of those newbie retail investors, and I actually tripled my money on GME, because I saw the price spike, went “Yep, that’s the squeeze, I’m out” and got my tendies, or whatever the fuck these idiots call it.
But for a lot of these people, the expectations of what this short squeeze would look like had basically snowballed into “Remake the global economy with us at the top” so they bought in hard, and kept buying in, way past the point where the squeeze was done, past the point of having any reasonable expectation of cashing out at anything other than a huge loss.
So now they’re stuck basically praying for a miracle, because they’ve got nothing else left.
Only sorta. I’m not sure how much they are right about the crookedness of the market - it’s just that retail investors are at a severe disadvantage to institutional ones.
What they did do was create a short squeeze for a bunch of folks (rightly) betting that GameStop is overvalued because it’s a shit company with no real path to an increasingly digital market.
The problem, basically, is that the people saying “buy Gamestop” originally were people who figured “Hey, this stock is probably slightly undervalued.” As in, this is $2 but it could probably climb to more like $2.50 or $3 over the next five years.
Then WSB started to meme the thing like crazy, because WSB are a bunch of degenerate gamblers who don’t give a fuck about actual sensible investment strategies, which created the conditions for a short squeeze, which pulled in a bunch of newbie retail investors who drove the squeeze even higher, but were given absolutely no realistic expectations about what that would look like.
I was one of those newbie retail investors, and I actually tripled my money on GME, because I saw the price spike, went “Yep, that’s the squeeze, I’m out” and got my tendies, or whatever the fuck these idiots call it.
But for a lot of these people, the expectations of what this short squeeze would look like had basically snowballed into “Remake the global economy with us at the top” so they bought in hard, and kept buying in, way past the point where the squeeze was done, past the point of having any reasonable expectation of cashing out at anything other than a huge loss.
So now they’re stuck basically praying for a miracle, because they’ve got nothing else left.
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