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GameStop Stock Experiences 860% Rally Triggered by Reddit Investing Group

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Jan 26, 2021

Since the beginning of the year 2021, GameStop has started gaining a lot of attention from the crypto-investment community. However, since January 22, 2021, GameStop seems to have become a beacon for many investment groups and individuals.

The platform has been gaining a lot of attention and adoption from the mainstream investors for its stock (GME). GameStop is a popular and very prominent video game retailer that has managed to gain an 860% rally in its stock prices since January 4, 2021.

According to the analysis report, GameStop’s stock prices surged from $17.40 to the highest value of $159.18. The company has managed to achieve this figure in a matter of around 20 days, starting from January 4, 2021, and going all the way to January 25, 2021.

However, towards the end of January 25, 2021, the GME stocks ended up being pulled back from their highs. The GME stock lost 51.70% of its highest value and closed the day at $76.79. Still, there has to be a particular reason why the stock experienced such a high surge with respect to its stock price.

Whenever there is an increase in the prices of cryptocurrencies and stocks, there are solid fundamentals behind such surges. However, the main reason behind the surge in GameStop’s stock prices is a unique one.

In the case of GameStop, the personnel involved in skyrocketing the price of its stocks was the “Reddit Army”. This personnel is online communities formed on the Reddit platform and they have joined forces to achieve one particular goal.

The main goal of the Reddit Army is to go head to head with Wall Street and some of the biggest firms it represents.

One of the major examples of such a trend is when a large group of cryptocurrency users joined forces to boost the prices for Chainlink (LINK). This group was referred to as “LINK Marines” by many of the cryptocurrency investors and they were dedicated to helping LINK.

Their main goal was to spread positive feedback and reviews about LINK and altcoins as compared to Bitcoin (BTC) and other assets. Surprisingly, this phenomenon was not short-lived or extinct, but it is indeed dormant. It has been observed that the “LINK Marines” are always on standby and waiting for any entity to emerge against LINK.

As soon as any entity or a large number of investors try to pose threat to LINK, these investment groups jump in to save the day. In the earlier part of 2020, Zeus Capital tried opening short positions on LINK but all sales were refused by LINK Marines and LINK ended up experiencing all-time highs.

Similarly, Citron Research announced it was opening short positions on GME predicting its prices were going to fall down to $20. The Citron Research officials were announcing it live through Twitter and that is when the Reddit Army came into action. Citron Research saw the GME stock prizes go sky-rocket before it could even end the live-stream.

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