Robinhood has gone ahead to suspend GameStop’s trading on the platform after announcing earlier in a statement. The asset saw a massive bull run, which triggered the cautious side of the trading platform, which has since suspended trades related to the asset. The asset saw massive surges off the back of several short sales that took place.
According to records, it was revealed that a member who was on the WallStreetsBets platform that was launched by Reddit housed most of the people who were short-selling the asset. The records also stated that the “GME Army” is a group of users who triggered the recent surge that GameStop witnessed, which led to its suspension on Robinhood.
Robinhood has also suspended trades of AMC Entertainment
The financial world was at alert as GameStop shares went over the edge due to the stock moved from around $20 on January 12 to almost $212. Even though the digital asset has lost a cumulative total of about 30% in the previous day, it previously registered the highest trading figure when it sold for $347.51.
Asides from GameStop entering the limelight due to its massive price movement, another stock that has been doing relatively well in the market is AMC Entertainment. The massive price surge was witnessed at the beginning of the trading day of January 27 as the asset saw its previous price increase in four-folds.
With AMC Entertainment seeing the same price surge, Robinhood went ahead to suspend its trade and trades of markets associated with it. Backing up the action of Robinhood, the CEO of the trading platform, NASDAQ, Adena Friedman, granted an interview where issues regarding the massive surge of stocks were discussed. In the CEO’s reply to a question, he mentioned that the trading platform may consider suspending trades for a particular asset provided the asset begins to show traces of activities that are not usual.
Twitter users compare GME to Bitcoin
The massive rise in GameStop’s stock price has generated a degree of buzz around major social media platforms, with most users skeptical about the asset while others are embracing it. Other users have argued that the massive surge in the price of the asset may signify doom for the financial system. They mentioned that if trades of stocks like that are not brought under wraps, we could witness the end of the financial market.
While others are making a case for the asset destroying the financial system, other traders on Twitter have started to compare the movement of the stock with that of leading digital asset Bitcoin. Even though Bitcoin is now a household name and has seen a massive increase in price over the last few years, it took a while before the digital asset started to make mighty surges in the crypto market.
According to a user, he likened GameStop’s shares to Bitcoin and has mentioned that he wants to pool in all the funds gotten from his pension into the stock. Backing the asset up, the CEO of BOX also mention that GME will be the new store of value for now because Bitcoin already had its chance last year.