WallStreetBets Sets Sights on TRON After Justin Sun Buys $10 million of Gamestop
Gamestop’s stock has risen over 1500% this month since being promoted by the Reddit community. TRX increased by over 45% when Justin Sun’s tweet reached the front page of WallStreetBets today.
Yesterday, CEO of the TRON Foundation and Bittorrent Inc., Justin Sun tweeted out that he was going to buy $1 million of GME shares to support the WallStreetBets community. Today he increased that bet to $10 million.
WallStreetBets currently does not allow crypto discussion on their subreddit, but Justin Sun has managed to bypass this restriction by talking about TRX in the same tweet that he said he bought GME.
In the official WallStreetsBets Telegram chat room, users have begun talking about TRX, including some more wealthy users who are urging users to “spread the news.”
TRON is one of the most heavily shorted cryptocurrencies, with some exchanges like Bitfinex having up to 10x more shorts than longs opened. Gamestop’s gains were largely attributed to hedge funds taking huge shorts positions against GME, leading to a massive short squeeze when retail traders from WallStreetBets started piling in on the buy side.
Some traders have asserted that TRON could see a similar short squeeze when retail traders from WallStreetBets start piling in. This could lead to massive gains for TRX in the coming weeks.
Many stock brokers have also begun to halt trading on their platforms to prevent losses to the hedge funds and brokerages. This has created a massive wave of bipartisan outrage against these companies for “rigging the game against retail traders.”
Many of these traders have said they are going to move to cryptocurrency markets because it is much harder to suspend trading of a cryptocurrency, and there are not the same restrictions on trading as there is in the stock market.
After brokerages suspended trading, the leaders of the WallStreetBets community, including Elon Musk, started indicating a shift towards cryptocurrencies, Elon’s favorite crypto DOGE increased by over 1000% in a 24 hour period, and many other cryptocurrencies saw small boosts in price, including TRX increasing by over 45%.