Reddit WallstreetBets Copies Chainlink Marines Playbook: GameStop Up 800%

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Last Updated on 23 March 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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In the beginning of 2020, long before Bitcoin would drop back to $4,000, have a midyear May halving and then rise to $20,000, a social media rally saved Chainlink. When the group of dedicated Chainlink fans known as the Chainlink Marines heard that Zeus Capital had opened a short position on their favorite crypto, they huddled together and sent Chainlink even higher, buying up every new low. By the summer, as DeFi became famous, Chainlink hit $20.

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WallStreetBets

Gemini co-founderĀ  Tyler Winklevoss at the time commented:

I really appreciate the passion of the $LINK Marines. Their fervor and dedication reminds me of the early Bitcoin and Ethereum communities. Unlike many other crypto armies, they are dedicated to a project that has real promise and technical merit.

By now, the Chainlink Marines playbook has been copied by a group of Reddit enthusiasts who are grouping together on a Sub-Reddit called r/wallstreetbets. This social media band of brothers has become so massive that they are able to move Wall Street stocks.

Hedge fund short position

Their biggest exploit came earlier this week when they sent Gamestop stock some 800% higher in only a few days after hearing that a Wall Street hedge fund called Melvin Capital wanted to enlarge it’s short position.

Bankrupting Institutional Investors for Dummies, ft GameStop from wallstreetbets

The story is a long and winding one, but started to gain traction when a Reddit story named Bankrupting Institutional Investors for Dummies appeared on the site in September last year. The Redditor explained the theory, copying the Chainlink Marines playbook of last year.

Fans of the game selling franchise shop network GamestopĀ (which clearly had no real future anymore give the number of brick and mortar stores that it owned), sent the stock ever higher in order to put the short sellerā€™s position underwater.

As of yesterday, they were able to do so much damage to classic Wall Street hedge funds that Citadel and Point72, two major funds, had to invest $2.75 billion into Melvin Capital to keep it alive. Melvin saw itā€™s short position on Gamestop blow up.

By now, Melvin Capital is down 21% for the year, which is about the same percentage that Gamestop is up pre-market today.

Looks like Reddit is bringing crypto trading to Wall Street.

ericbvd / Depositphotos.com