The outspoken, media-loving crypto entrepreneur claimed he would support the cause in a tweet this morning.
Tron founder joins the cause
Tron founder Justin Sun is soon to buy GameStop (GME) stocks, he said in a tweet this morning. The move comes as GME hogged headlines around the world after members of a certain subreddit unleashed their capital to save the dying gaming company.
WallStreetBets (WSB), the subreddit, has taken the hedge fund world to its knees, or Melvin Capital to be specific. The latter shorted GME last year on a 140% level, meaning it went beyond both its and the stock’s limits to profit from the fall of GameStop.
But WSB had other plans in mind. Its Robinhood-loving traders stepped up last year to start purchasing calls, a financial instrument that allows investors to purchase huge quantities of stock (while predicting a bigger price) at a low cost.
They managed to take the stock from its $4 price level earlier this year to its current $513 level (premarket). The gains have been phenomenal as well. One such user, who invested $50,000 to purchase GME calls in 2019, is now sitting on a $33 million profit at the time of this writing.
Sun now wants in on that race. He said in a tweet today, “I’ll be buying $1 Mil of $GME tonight from Asia when the market opens,” adding:
“Wallstreetbets community know that over 4 billion Asian community & 20 mil $TRX community are behind you! Watch out, Asians are coming!”
With his tweet, Sun joined other influential entrepreneurs like Chamath Palihapitiya and Elon Musk, who spoke about GME and the WSB effect on their own tweets in the past week.
Fight against the establishment
For the Reddit community, the GME purchase started out as a profit-seeking play but has since turned into a full-fledged onslaught against the leaders of the current financial system. Several posts on the subreddit are now about holding the stock until a mammoth short expiry on Friday—a move that will pump the stock even higher.
Individuals from the traditional space are sitting up and taking notice as well. Charles Payne, a host at Fox Business, said in a segment yesterday that the shorts sellers had their way with the market for decades, and now that individual investors were playing the same game, the “big hedge funds were losing.”
Mark Cuban, billionaire investor and owner of the Dallas Mavericks, also chimed in:
“I got to say I LOVE LOVE what is going on with #wallstreetbets. All of those years of High Frequency Traders front running retail traders, now speed and density of information and retail trading is giving the little guy an edge. Even my 11 yr old traded with them and made [money].”
Wonder who else is going to speak up for the cause next.
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