Read more from Author Brent Dubin here: https://globelivemedia.com/author/brent-dubin/
Globe Live Media, Thursday, January 28, 2021
GameStop
Anyone who heard the name “GameStop” just a few days ago probably thought of the company that was about to go bankrupt. But whoever thinks of “GameStop” today is probably thinking of the greatest scandal in the stock market in recent decades. Within a few days, the value of the company increased in some cases 200 times! A share that cost just 2 euros per share at the weakest point in time became a company with a share value of over 400 euros per share!
The lucky ones who invested 1,000 euros at the time of the 2-euro share would ideally have been able to pay out 200,000 euros at the peak. The share boom continued until the first investment platforms banned trading in the share. Above all the trading platform “Robinhood”.
The boom arose from the fact that members of the Reddit sub-forum “wallstreetbets” got together and jointly bought the company’s shares in order to “destroy” the educational purchases of the large hedge funds. They accuse the large hedge funds of deliberately sabotaging companies with their practices.
Scandal
Now some decisions seem to have been made in the background that would prevent the trading of GameStop shares. First trading platforms such as “Robinhood”, “eToro” and Co. have stopped trading with.
This caused an international shit storm against the trading platforms. If you go to the Robinhood entry in the AppStore, you will find an app with a 1-star rating. Thousands of 1-star ratings came together within minutes of the game-stop trading suspension being announced.
after delisting GameStop and AMC, Robinhood has gotten over 100,000 1 star reviews in one hour on the app store, now set with a 1 rating. they deserve it pic.twitter.com/eDNDuPrj8r
— Rod Breslau (@Slasher) January 28, 2021
The fans suspect that the trading platforms are behind the hedge funds to prevent them from going bankrupt. According to the media, a hedge fund is said to have lost $ 13 billion and gone bankrupt.
From Robinhood employee posted to Reddit pic.twitter.com/dGgQFZogiL
– Justin Kan (@justinkan) January 28, 2021
Class action
The closing of GameStop shares doesn’t seem like investors just want to sit on them. A wave of angry investors who want to file a class action against the trading platforms is mobilizing via social media. The scandal surrounding the closure of the GME market is making waves in the media around the world.
BREAKING: Class action complaint against @RobinhoodApp filed in the southern district of NYhttps://t.co/DuGP3LIQDQ pic.twitter.com/mw82RRoA2L
— Lydia Moynihan (@LJMoynihan) January 28, 2021
Reddit deletes subforum
Furthermore, Reddit also had to react. The popular sub-forum and initiator of the GME stock boom has been deleted from the platform.
WallStreetBets subreddits has been taken down. This is the system working against the people.
– Justin Kan (@justinkan) January 28, 2021